A BILL TO BE ENTITLED
AN ACT to make technical, clarifying, and administrative changes to the tax and related laws.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑41(a) reads as rewritten:
"(a)	Every individual in this State who practices a profession or engages in a business and is included in the list below must obtain from the Secretary a statewide license for the privilege of practicing the profession or engaging in the business. A license required by this section is not transferable to another person. The tax for each license is fifty dollars ($50.00).
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(12)	A home inspector or an associate home inspector licensed under Article 9F of Chapter 143 of the General Statutes."
SECTION 2.  G.S. 105‑130.4(h) reads as rewritten:
"(h)	The income less related expenses from any other activities producing nonapportionable income or investments not otherwise specified in this section is allocable to this State if the business situs of the activities or investments are located in this State."
SECTION 3.  G.S. 105‑130.18 reads as rewritten:
"§ 105‑130.18.  Failure to file returns; supplementary returns.
If the Secretary determines that a corporation has failed to file a return or to include in a return filed, either intentionally or through error, items of taxable income, the Secretary may require from the corporation a return or supplementary return, under affirmation, of all the items of income that the corporation received during the year for which the return is made, whether or not taxable under this Part. If from a supplementary return or otherwise the Secretary finds that any items of income, taxable under this Part, have been omitted from the original return, that any items returned as taxable are not taxable, or that any item of taxable income is overstated or understated, the Secretary may require that the item be disclosed under affirmation of the corporation, and be added to or deducted from the original return. The filing of a supplementary return and the correction of the original return does not relieve the corporation from any of the penalties under G.S. 105‑236. The Secretary may proceed under the provisions of G.S. 105‑241.9, whether or not the Secretary requires a return or a supplementary return under this section."
SECTION 4.  Section 4(b) of S.L. 2008‑134 reads as rewritten:
"SECTION 4.(b)  This section is effective for taxable years beginning on or after January 1, 2008."
SECTION 5.(a)  G.S. 105‑228.5B reads as rewritten:
"§ 105‑228.5B.  (Effective until June 30, 2010) Proceeds credited to High Risk Pool.
By November 1 of each year, the State Treasurer must transfer from the General Fund to the North Carolina Health Insurance Risk Pool Fund established in G.S. 58‑50‑225 an amount equal to the growth in net revenue from the tax applied to gross premiums under G.S. 105‑228.5(d)(2). The growth in revenue from this tax is the difference between the amount of revenue collected during the preceding fiscal year on premiums taxed under that subdivision less $475,545,413, which is the amount of revenue collected during fiscal year 2006‑2007 on premiums taxed under that subdivision. The Treasurer must draw the amount required under this section from revenue collected on premiums taxed under that subdivision."
SECTION 5.(b)  G.S. 105‑228.5B, as amended by S.L. 2008‑118, reads as rewritten:
"§ 105‑228.5B.  (Effective June 30, 2010) Distribution of part of tax proceeds to High Risk Pool.
By November 1 of each year, the State Treasurer must transfer from the General Fund to the North Carolina Health Insurance Risk Pool Fund established in G.S. 58‑50‑225 an amount equal to thirty percent (30%) of the growth in revenue from the tax applied to gross premiums under G.S. 105‑228.5(d)(2). The growth in revenue from this tax is the difference between the amount of revenue collected during the preceding fiscal year on premiums taxed under that subdivision less $475,545,413, which is the amount of revenue collected during fiscal year 2006‑2007 on premiums taxed under that subdivision. The Treasurer must draw the amount required under this section from revenue collected on premiums taxed under that subdivision."
SECTION 5.(c)  Subsections (a) and (c) of this section are effective when they become law.  Subsection (b) of this section becomes effective June 30, 2010.

sales tax changes
SECTION 6.(a)  G.S. 105‑164.14(j)(2)n. reads as rewritten:
"n.	Solar electricity generating materials manufacturing. Solar electricity generating materials manufacturing means the development and production of one or more of the following:
1.	Photovoltaic materials or modules used in producing electricity.
2.	Polymers or polymer films primarily intended for incorporation into photovoltaic materials or modules used in producing electricity."
SECTION 6.(b)  This section is effective July 1, 2008, and applies to purchases made on or after that date.
SECTION 7.  G.S. 105‑187.51C(c) reads as rewritten:
"(c)	Forfeiture. – If the required level of investment to qualify as an eligible datacenter is not timely made, then the rate provided under this section is forfeited. If the required level of investment is timely made but any eligible machinery and equipment is not located and used at an eligible datacenter, then the rate provided for that machinery and equipment under this subdivision is forfeited. A taxpayer that forfeits a rate under this subdivision is liable for all past sales and use taxes avoided as a result of the forfeiture, computed at the combined general rate from the date the taxes would otherwise have been due, plus interest at the rate established under G.S. 105‑241.21. If the forfeiture is triggered due to the lack of a timely investment required by this section, then interest is computed from the date the sales or use tax would otherwise have been due. For all other forfeitures, interest is computed at the combined general rate from the time as of which the machinery or equipment was put to a disqualifying use. A credit is allowed against the sales or use tax owed as a result of the forfeiture provisions of this subsection for privilege taxes paid pursuant to this section. For purposes of applying this credit, the fact that payment of the privilege tax occurred in a period outside the statute of limitations provided under G.S. 105‑241.6 shall not be considered. Interest shall not be computed against the amount of taxes offset by this credit. The past taxes and interest are due 30 days after the date of forfeiture. A taxpayer that fails to pay the past taxes and interest by the due date is subject to the provisions of G.S. 105‑236."

property tax changes
SECTION 8.(a)  G.S. 105‑273(6) reads as rewritten:
"(6)	Corporation. – An organization having capital stock represented by shares or an incorporated, nonprofit organization."
SECTION 8.(b)  G.S. 105‑277.1B(i) reads as rewritten:
"(i)	Disqualifying Events. – Each of the following constitutes a disqualifying event:
(1)	The owner transfers the residence. Transfer of the residence is not a disqualifying event if (i) the owner transfers the residence to a co‑owner of the residence or, as part of a divorce proceeding, to his or her spouse and (ii) that individual occupies or continues to occupy the property as his or her permanent residence.
(2)	The owner dies. Death of the owner is not a disqualifying event if (i) the owner's share passes to a co‑owner of the residence or to his or her spouse and (ii) that individual occupies or continues to occupy the property as his or her permanent residence.
(3)	The owner ceases to use the property as a permanent residence."
SECTION 9.(a)  G.S. 105‑282.1(a)(1) reads as rewritten:
"(1)	No application required. – Owners of the following exempt or excluded property do not need to file an application for the exemption or exclusion to be entitled to receive it:
a.	Property exempt from taxation under G.S. 105‑278.1 or G.S. 105‑278.2.
b.	Special classes of property excluded from taxation under G.S. 105‑275(15), (16), (26), (31), (32a), (33), (34), (37), (40), (42), or (44).
c.	Property classified for taxation at a reduced valuation under G.S. 105‑277(g) or G.S. 105‑277.9."
SECTION 9.(b)  This section is effective for taxes imposed for taxable years beginning on or after July 1, 2008.
SECTION 10.  G.S. 105‑275 reads as rewritten:
"§ 105‑275.  Property classified and excluded from the tax base.
The following classes of property are designated special classes under  Article V, Sec. 2(2), of the North Carolina Constitution and are excluded from tax as provided in this section if they satisfy the application requirements in G.S. 105‑282.1.
…."
SECTION 11.(a)  G.S. 105‑277.1(d) reads as rewritten:
"§ 105‑277.1.  (Effective for taxes imposed for taxable years beginning before July 1, 2009) Property tax homestead exclusion.
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(d)	Multiple Ownership. – A permanent residence owned and occupied by husband and wife as tenants by the entirety is entitled to the full benefit of this exclusion notwithstanding that only one of them meets the age or disability requirements of this section. When a permanent residence is owned and occupied by two or more persons other than husband and wife as tenants by the entirety and one or more of the owners qualifies for this exclusion, each qualifying owner is entitled to the full amount of the exclusion not to exceed his or her proportionate share of the valuation of the property. No part of an exclusion available to one co‑owner may be claimed by any other co‑owner and in no event may the total exclusion allowed for a permanent residence exceed the exclusion amount provided in this section."
SECTION 11.(b)  G.S. 105‑277.1(d) and (e) read as rewritten:
"§ 105‑277.1.  (Effective for taxes imposed for taxable years beginning on or after July 1, 2009) Elderly or disabled property tax homestead exclusion.
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(d)	Ownership by Tenants by the Entirety. – A permanent residence owned and occupied by husband and wife as tenants by the entirety is entitled to the full benefit of this exclusion notwithstanding that only one of them meets the age or disability requirements of this section.
(e)	Other Multiple Owners. – This subsection applies to co‑owners who are not husband and wife as tenants by the entirety. Each co‑owner of a permanent residence must apply separately for the exclusion allowed under this section.
When one or more co‑owners of a permanent residence qualify for the exclusion allowed under this section and none of the co‑owners qualifies for the exclusion allowed under G.S. 105‑277.1C, each co‑owner is entitled to the full amount of the exclusion allowed under this section. The exclusion allowed to one co‑owner may not exceed the co‑owner's proportionate share of the valuation of the property, and the amount of the exclusion allowed to all the co‑owners may not exceed the exclusion allowed under this section.
When one or more co‑owners of a permanent residence qualify for the exclusion allowed under this section and one or more of the co‑owners qualify for the exclusion allowed under G.S. 105‑277.1C, each co‑owner who qualifies for the exclusion under this section is entitled to the full amount of the exclusion. The exclusion allowed to one co‑owner may not exceed the co‑owner's proportionate share of the valuation of the property, and the amount of the exclusion allowed to all the co‑owners may not exceed the greater of the exclusion allowed under this section and the exclusion allowed under G.S. 105‑277.1C."
SECTION 12.  G.S. 105‑277.1B reads as rewritten:
"§ 105‑277.1B.  (Effective for taxes imposed for taxable years beginning on or after July 1, 2009) Property tax homestead circuit breaker.
(a)	Classification. – A permanent residence owned and occupied by a qualifying owner is designated a special class of property under Article V, Section 2(2) of the North Carolina Constitution and is taxable in accordance with this section.
(b)	Definitions. – The definitions provided in G.S. 105‑277.1 apply to this section. 'Deferred taxes' means the principal amount of tax deferred under this section.
(c)	Income Eligibility Limit. – The income eligibility limit provided in G.S. 105‑277.1(a2) applies to this section.
(d)	Qualifying Owner. – For the purpose of qualifying for the property tax homestead circuit breaker under this section, a qualifying owner is an owner who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed:
(1)	The owner has an income for the preceding calendar year of not more than one hundred fifty percent (150%) of the income eligibility limit specified in subsection (c) of this section.
(2)	The owner has ooccupied the property as a permanent residence for at least five years and has owned the property as a permanent residence for at least five consecutive years.
(3)	The owner is at least 65 years of age or totally and permanently disabled.
(4)	The owner is a North Carolina resident.
(e)	Multiple Owners. – A permanent residence owned and occupied by husband and wife as tenants by the entirety is entitled to the full benefit of the property tax homestead circuit breaker notwithstanding that only one of them meets the length of occupancy requirement and the age or disability requirement of this section. When a permanent residence is owned and occupied by two or more persons other than husband and wife as tenants by the entirety, no property tax homestead circuit breaker is allowed unless all of the owners qualify and elect to defer taxes under this section.
(f)	Tax Limitation. – A qualifying owner may defer the portion of tax imposed on his or her permanent residence if it exceeds the percentage of the qualifying owner's income set out in the table in this subsection. If a permanent residence is subject to tax by more than one taxing unit and the total tax liability exceeds the tax limit imposed by this section, then both the taxes due under this section and the taxes deferred under this section must be apportioned among the taxing units based upon the ratio each taxing unit's tax rate bears to the total tax rate of all units.
Income Over	Income Up To	Percentage
		‑0‑	Income Eligibility Limit	4.0%
Income Eligibility Limit	150% of Income Eligibility Limit	5.0%
(g)	Temporary Absence. – An otherwise qualifying owner does not lose the benefit of this circuit breaker because of a temporary absence from his or her permanent residence for reasons of health, or because of an extended absence while confined to a rest home or nursing home, so long as the residence is unoccupied or occupied by the owner's spouse or other dependent.
(h)	Deferred Taxes. – The difference between the taxes due under this section and the taxes that would have been payable in the absence of this section are a lien on the real property of the taxpayer as provided in G.S. 105‑355(a). The difference in taxes for the three fiscal years preceding the  tax year in which a disqualifying event occurs shall be carried forward in the records of the taxing unit or units as deferred taxes. The deferred taxes are due and payable in accordance with G.S. 105‑277.1F when the property loses its eligibility for deferral because of the occurrence of a disqualifying event as provided in subsection (i) of this section. On or before September 1 of each year, the collector shall send to the mailing address of a residence on which taxes have been deferred a notice stating the amount of deferred taxes and interest that are due and payable upon the occurrence of a disqualifying event.
(i)	Disqualifying Events. – Each of the following constitutes a disqualifying event:
(1)	The owner transfers the residence. Transfer of the residence is not a disqualifying event if (i) the owner transfers the residence to a co‑owner of the residence or, as part of a divorce proceeding, to his or her spouse and (ii) that individual occupies or continues to occupy the property as his or her permanent residence.
(2)	The owner dies. Death of the owner is not a disqualifying event if (i) the owner's share passes to a co‑owner of the residence or to his or her spouse and (ii) that individual occupies or continues to occupy the property as his or her permanent residence.
(3)	The owner ceases to use the property as a permanent residence.
(j)	Gap in Deferral. – If an owner of a residence on which taxes have been deferred under this section is not eligible for continued deferral for a tax year, the three years for which the deferred taxes  are carried forward are not due and payable until a disqualifying event occurs. If the owner of the residence qualifies for deferral after one or more years in which he or she did not qualify for deferral, the years in which the owner did not qualify are disregarded in determining the three years for which the deferred taxes are carried forward.
(k)	(Repealed effective for taxes imposed for taxable years beginning on or after July 1, 2008) Prepayment. – All or part of the deferred taxes and accrued interest may be paid to the tax collector at any time. Any partial payment is applied first to accrued interest. A residence owner to whom a tax deferral has previously been granted may revoke the application for deferral at any time by notifying the assessor in writing.
(l)	Creditor Limitations. – A mortgagee or trustee that elects to pay any tax deferred by the owner of a residence subject to a mortgage or deed of trust does not acquire a right to foreclose as a result of the election. Except for requirements dictated by federal law or regulation, any provision in a mortgage, deed of trust, or other agreement that prohibits the owner from deferring taxes on property under this section is void.
(m)	Construction. – This section does not affect the attachment of a lien for personal property taxes against a tax‑deferred residence.
(n)	Application. – An application for property tax relief provided by this section should be filed during the regular listing period, but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the relief is claimed. Persons may apply for this property tax relief by entering the appropriate information on a form made available by the assessor under G.S. 105‑282.1."
SECTION 13.  G.S. 105‑277.1C reads as rewritten:
"§ 105‑277.1C.  (Effective for taxes imposed for taxable years beginning on or after July 1, 2009) Disabled veteran property tax homestead exclusion.
(a)	Exclusion. – A permanent residence owned and occupied by an owner who is a North Carolina resident and who is an honorably discharged disabled veteran or the unmarried surviving spouse of an honorably discharged disabled veteran is designated a special class of property under Article V, Section 2(2) of the North Carolina Constitution and is taxable in accordance with this section. The first forty‑five thousand dollars ($45,000) of appraised value of the residence is excluded from taxation. An owner who receives an exclusion under this section may not receive other property tax relief.
(b)	Definitions. – The following definitions apply in this section:
(1)	Disabled veteran. – A veteran who, as of January 1 preceding the taxable year for which the exclusion allowed by this section is claimed, received benefits under 38 U.S.C. § 2101 or has a veteran's disability certification.
(2)	Owner. – Defined in G.S. 105‑277.1.
(3)	Permanent residence. – Defined in G.S. 105‑277.1.
(4)	Property tax relief. – Defined in G.S. 105‑277.1.
(5)	Veteran. – A veteran of any branch of the Armed Forces of the United States.
(6)	Veteran's disability certification. – A certification by the United States Department of Veterans Affairs or another federal agency that a veteran has a permanent total disability that is service‑connected.
(c)	Temporary Absence. – An owner does not lose the benefit of this exclusion because of a temporary absence from his or her permanent residence for reasons of health or because of an extended absence while confined to a rest home or nursing home, so long as the residence is unoccupied or occupied by the owner's spouse or other dependent.
(d)	Ownership by Tenants by the Entirety. – A permanent residence owned and occupied by husband and wife as tenants by the entirety is entitled to the full benefit of this exclusion notwithstanding that only one of them meets the requirements of this section.
(e)	Other Multiple Owners. – This subsection applies to co‑owners who are not husband and wife as tenants by the entirety. Each co‑owner of a permanent residence must apply separately for the exclusion allowed under this section.
When one or more co‑owners of a permanent residence qualify for the exclusion allowed under this section and none of the co‑owners qualifies for the exclusion allowed under G.S. 105‑277.1, each co‑owner is entitled to the full amount of the exclusion allowed under this section. The exclusion allowed to one co‑owner may not exceed the co‑owner's proportionate share of the valuation of the property, and the amount of the exclusion allowed to all the co‑owners may not exceed the exclusion allowed under this section.
When one or more co‑owners of a permanent residence qualify for the exclusion allowed under this section and one or more of the co‑owners qualify for the exclusion allowed under G.S. 105‑277.1, each co‑owner who qualifies for the exclusion allowed under this section is entitled to the full amount of the exclusion. The exclusion allowed to one co‑owner may not exceed the co‑owner's proportionate share of the valuation of the property, and the amount of the exclusion allowed to all the co‑owners may not exceed the greater of the exclusion allowed under this section and the exclusion allowed under G.S. 105‑277.1.
(f)	Application. – An application for the exclusion allowed under this section should be filed during the regular listing period, but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the exclusion is claimed. An applicant for an exclusion under this section must establish eligibility for the exclusion by providing a copy of the veteran's disability certification or evidence of benefits received under 38 U.S.C. § 2101."
SECTION 14.  G.S. 105‑282.1(a) reads as rewritten:
"(a)	Application. – Every owner of property claiming exemption or exclusion from property taxes under the provisions of this Subchapter has the burden of establishing that the property is entitled to it. If the property for which the exemption or exclusion is claimed is appraised by the Department of Revenue, the application shall be filed with the Department. Otherwise, the application shall be filed with the assessor of the county in which the property is situated. An application must contain a complete and accurate statement of the facts that entitle the property to the exemption or exclusion and must indicate the municipality, if any, in which the property is located. Each application filed with the Department of Revenue or an assessor shall be submitted on a form approved by the Department. Application forms shall be made available by the assessor and the Department, as appropriate.
Except as provided below, an owner claiming an exemption or exclusion from property taxes must file an application for the exemption or exclusion annually during the listing period.
(1)	No application required. – Owners of the following exempt or excluded property do not need to file an application for the exemption or exclusion to be entitled to receive it:
a.	Property exempt from taxation under G.S. 105‑278.1 or G.S. 105‑278.2.
b.	Special classes of property excluded from taxation under G.S. 105‑275(15), (16), (26), (31), (32a), (33), (34), (37), (40), (42), or (44).
c.	Property classified for taxation at a reduced valuation under G.S. 105‑277(g) or G.S. 105‑277.9.
(2)	(Effective for taxes imposed for taxable years beginning before July 1, 2009) Single application required. – An owner of one or more of the following properties eligible to be exempted or excluded from taxation must file an application for exemption or exclusion to receive it. Once the application has been approved, the owner does not need to file an application in subsequent years unless new or additional property is acquired or improvements are added or removed, necessitating a change in the valuation of the property, or there is a change in the use of the property or the qualifications or eligibility of the taxpayer necessitating a review of the exemption or exclusion:
a.	Property exempted from taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑ 278.6, 105‑278.7, or 105‑278.8.
b.	Special classes of property excluded from taxation under G.S. 105‑275(3), (7), (8), (12), (17), (18), (19), (20), (21), (31e), (35), (36), (38), (39), (41), or (45) or under G.S. 131A‑21.
c.	Special classes of property classified for taxation at a reduced valuation under G.S. 105‑277(h), 105‑277.1, 105‑277.10, 105‑277.13, 105‑278.
d.	Property owned by a nonprofit homeowners' association but where the value of the property is included in the appraisals of property owned by members of the association under G.S. 105‑277.8.
(2)	(Effective for taxes imposed for taxable years beginning on or after July 1, 2009 and before July 1, 2010) Single application required. – An owner of one or more of the following properties eligible for a property tax benefit must file an application for the benefit to receive it. Once the application has been approved, the owner does not need to file an application in subsequent years unless new or additional property is acquired or improvements are added or removed, necessitating a change in the valuation of the property, or there is a change in the use of the property or the qualifications or eligibility of the taxpayer necessitating a review of the benefit.
a.	Property exempted from taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑278.6, 105‑278.7, or 105‑278.8.
b.	Special classes of property excluded from taxation under G.S. 105‑275(3), (7), (8), (12), (17), (18), (19), (20), (21), (31e), (35), (36), (38), (39), (41), or (45) or under G.S. 131A‑21.
c.	Special classes of property classified for taxation at a reduced valuation under G.S. 105‑277(h), 105‑277.1, 105‑277.1C, 105‑277.10, 105‑277.13, 105‑277.14, or 105‑278.
d.	Property owned by a nonprofit homeowners' association but where the value of the property is included in the appraisals of property owned by members of the association under G.S. 105‑277.8.
e.	Repealed by Session Laws 2008‑35, s. 1.2, effective for taxes imposed for taxable years beginning on or after July 1, 2008.
(2)	(Effective for taxes imposed for taxable years beginning on or after July 1, 2010) Single application required. – An owner of one or more of the following properties eligible for a property tax benefit must file an application for the benefit to receive it. Once the application has been approved, the owner does not need to file an application in subsequent years unless new or additional property is acquired or improvements are added or removed, necessitating a change in the valuation of the property, or there is a change in the use of the property or the qualifications or eligibility of the taxpayer necessitating a review of the benefit.
a.	Property exempted from taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑278.6, 105‑278.7, or 105‑278.8.
b.	Special classes of property excluded from taxation under G.S. 105‑275(3), (7), (8), (12), (17), (18), (19), (20), (21), (31e), (35), (36), (38), (39), (41), or (45)  or under G.S. 131A‑21.
c.	Special classes of property classified for taxation at a reduced valuation under G.S. 105‑277(h), 105‑277.1, 105‑277.1C, 105‑277.10, 105‑277.13, 105‑277.14, 105‑277.15, or 105‑278.
d.	Property owned by a nonprofit homeowners' association but where the value of the property is included in the appraisals of property owned by members of the association under G.S. 105‑277.8.
e.	Repealed by Session Laws 2008‑35, s. 1.2, effective for taxes imposed for taxable years beginning on or after July 1, 2008."
SECTION 15.  G.S. 105‑277.14(d) is repealed.
SECTION 16.  G.S. 105‑361(a) reads as rewritten:
"(a)	Duty to Furnish a Certificate. – On the request of any of the persons prescribed in subdivision (a)(1), below, and upon the condition prescribed by subdivision (a)(2), below, the tax collector shall furnish a written certificate stating the amount of any taxes and special assessments owed for the current year and for any prior years. The certificate shall include deferred taxes that are due and payable because of the occurrence of a disqualifying event.
(1)	Who May Make Request. – Any of the following persons shall be entitled to request the certificate:
a.	An owner of the real property;
b.	An occupant of the real property;
c.	A person having a lien on the real property;
d.	A person having a legal interest or estate in the real property;
e.	A person or firm having a contract to purchase or lease the property or a person or firm having contracted to make a loan secured by the property;
f.	The authorized agent or attorney of any person described in subdivisions (a)(1)a through e above."

occupancy tax changes
SECTION 17.  Section 1 of S.L. 2008‑33 reads as rewritten:
"SECTION 1.  Chapter 1055 of the 1983 Session Laws, as amended by Section 21(e) of S.L. 2007‑527, reads as rewritten:
'Section 1. Occupancy Tax. – 
(a)	Authorization and Scope. – The Cherokee County Board of Commissioners may levy a room occupancy and tourism development 
		tax of three percent (3%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation furnished by any hotel, motel, inn, tourist camp, or other similar place within the county that is subject to sales tax imposed by the State under G.S. 105‑164.4(a)(3). 	The occupancy tax is in addition to any State or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations. 
(b)	Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Cherokee County Board of Commissioners may levy an additional room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of accommodations taxable under subsection (a) of this section. The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this act. Cherokee County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
'Sec. 3. Administration of Tax. – A tax levied under this act shall be levied, collected, administered, and repealed as provided in G.S. 153A‑155. The penalties provided in G.S. 153A‑155 apply to a tax levied under this act.
				'Sec. 5. Distribution and use of tax revenue. –  Cherokee County shall, on a quarterly basis, remit the net proceeds of the room occupancy tax to the Cherokee County Tourism Development Authority. The Authority shall use at least two‑thirds of the funds remitted to it under this act to promote travel and tourism in Cherokee County and shall use the remainder for tourism‑related expenditures. 
The following definitions apply in this section:
(1)	Net proceeds. – Gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.
(2)	Promote travel and tourism. – To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area. The term includes administrative expenses incurred in engaging in the listed activities.
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a county or to attract tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
'Sec. 6. Cherokee County Tourism Development Authority. – 
(a)	Appointment and Membership. – When the Cherokee County Board of Commissioners adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a County Tourism Development 				Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority. At least one‑third of the members must be individuals who are affiliated with businesses that collect the tax in the county, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the county. The board of commissioners shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority.
The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for Cherokee County shall be the ex officio finance officer of the Authority.
(b)	Duties. – The Authority shall expend the net proceeds of the tax levied under this act for the purposes provided in this act. The Authority shall promote travel, tourism, and conventions in the county, sponsor tourist‑related events and activities in the county, and finance tourist‑related capital projects in the county.
(c)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the board of county commissioners on its receipts and disbursements for the preceding quarter and for the year in such detail as the board may require.
		
'Sec. 8. This act is effective upon ratification."
SECTION 18.  The catchline for Section 21(j) of S.L. 2007‑527 reads as rewritten:"SECTION 21.(j)  Subsection (a) of Section 4 of Chapter 929 of the 1985 Session Laws, as amended by Chapter 319 of the 1987 Session Laws, reads as rewritten:"
SECTION 19.  Section 1(b) of S.L. 2005‑68 reads as rewritten:
"SECTION 1.(b)  Administration. – Except as otherwise provided in this act, a tax levied under this section shall be levied, administered, and collected as provided in Part IV of Chapter 908 of the 1983 Session Laws, as amended by Chapters 821 and 922 of the 1989 Session Laws, S.L. 2001‑402, and Section 21(cc) of S.L. 2007‑527.  The penalties provided in Part IV of Chapter 908 of the 1983 Session Laws, as amended by Chapters 821 and 922 of the 1989 Session Laws and S.L. 2001‑402, apply to a tax levied under this section."

motor fuel tax changes
SECTION 20.  G.S. 105‑449.72 is amended by adding a new subsection to read:
"(f)	Exemption. – The requirement to obtain a bond or irrevocable letter of credit does not apply to a distributor, importer, or motor fuel transporter who supplies motor fuel when the market for motor fuel is disrupted and emergency supplies are needed, as identified by an executive order of the Governor."
SECTION 21.  G.S. 105‑449.121(b)(2) reads as rewritten:
"(2)	Audit a distributor, a retailer, a bulk end‑user, or a motor fuel user that is not licensed under this Article."
SECTION 22.  G.S. 105‑449.136 reads as rewritten:
"§ 105‑449.136.  Tax on alternative fuel.
A tax at the motor fuel rate is imposed on liquid alternative fuel used to operate a highway vehicle by means of a vehicle supply tank that stores fuel only for the purpose of supplying fuel to operate the vehicle. A tax at the equivalent of the motor fuel rate is imposed on all other alternative fuel used to operate a highway vehicle. The Secretary must determine the equivalent rate. The exemptions from the tax on motor fuel in G.S. 105‑449.88 apply to the tax imposed by this section. The refunds for motor fuel tax allowed by Part 5 of Article 36C of this Chapter apply to the tax imposed by this section, except that the refund allowed by G.S. 105‑449.107(b) for certain vehicles that use power takeoffs does not apply to a vehicle whose use of alternative fuel is taxed on the basis of miles driven. The proceeds of the tax imposed by this section must be allocated in accordance with G.S. 105‑449.125."

other changes
SECTION 23.  Section 67(a) of S.L. 2008‑134 reads as rewritten:
"SECTION 67.(a)  G.S. 58‑6‑25(a)(2) is repealed."
SECTION 24.(a)  G.S. 153A‑156.1 reads as rewritten:
"§ 153A‑156.1.  (For effective date, see note) Heavy equipment gross receipts tax in lieu of property tax.
(a)	Definitions. – The following definitions apply in this section:
(1)	Heavy equipment. – Earthmoving, construction, or industrial equipment that is mobile, weighs at least 1,500 pounds, and meets any of the descriptions listed in this subdivision. The term includes an attachment for heavy equipment, regardless of the weight of the attachment.
a.	It is a self‑propelled vehicle that is not designed to be driven on a highway.
b.	It is industrial lift equipment, industrial material handling equipment, industrial electrical generation equipment, or a similar piece of industrial equipment.
(2)	Short‑term lease or rental. – Defined in G.S. 105‑187.1.
(b)	Tax Authorized. – A county may, by ordinance, impose a tax at the rate of one and two‑tenths percent (1.2%) on the gross receipts from the short‑term lease or rental of heavy equipment by a person whose principal business is the short‑term lease or rental of heavy equipment at retail. The heavy equipment subject to this tax is exempt from property tax under G.S. 105‑275, and this tax provides an alternative to a property tax on the equipment. A person is not considered to be in the short‑term lease or rental business if the majority of the person's lease and rental gross receipts are derived from leases and rentals to a person who is a related person under G.S. 105‑163.010.
The tax authorized by this section applies to gross receipts that are subject to tax under G.S. 105‑164.4(a)(2). Gross receipts from the short‑term lease or rental of heavy equipment are subject to a tax imposed by a county under this section if the place of business from which the heavy equipment is delivered is located in the county.
(c)	Payment. – A person whose principal business is the short‑term lease or rental of heavy equipment is required to remit a tax imposed by this section to the county finance officer. The tax is payable quarterly and is due by the last day of the month following the end of the quarter. The tax is intended to be added to the amount charged for the short‑term lease or rental of heavy equipment and paid to the heavy equipment business by the person to whom the heavy equipment is leased or rented.
(d)	Enforcement. – The penalties and collection remedies that apply to the payment of sales and use taxes under Article 5 of Chapter 105 of the General Statutes apply to a tax imposed under this section. The county finance officer has the same authority as the Secretary of Revenue in imposing these penalties and remedies.
(e)	Effective Date. – A tax imposed under this section becomes effective on the date set in the ordinance imposing the tax. The date must be the first day of a calendar quarter and may not be sooner than the first day of the calendar quarter that begins at least two months after the date the ordinance is adopted.
(f)	Repeal. – A county may, by ordinance, repeal a tax imposed under this section. The repeal is effective on the date set in the ordinance. The date must be the first day of a calendar quarter and may not be sooner than the first day of the calendar quarter that begins at least two months after the date the ordinance is adopted."
SECTION 24.(b)  G.S. 160A‑215.2 reads as rewritten:
"§ 160A‑215.2.  (For effective date, see note) Heavy equipment gross receipts tax in lieu of property tax.
(a)	Definitions. – The following definitions apply in this section:
(1)	Heavy equipment. – Defined in G.S. 153A‑156.1.
(2)	Short‑term lease or rental. – Defined in G.S. 105‑187.1.
(b)	Tax Authorized. – A city may, by ordinance, impose a tax at the rate of eight tenths percent (0.8%) on the gross receipts from the short‑term lease or rental of heavy equipment by a person whose principal business is the short‑term lease or rental of heavy equipment at retail. The heavy equipment subject to this tax is exempt from property tax under G.S. 105‑275, and this tax provides an alternative to a property tax on the equipment. A person is not considered to be in the short‑term lease or rental business if the majority of the person's lease and rental gross receipts are derived from leases and rentals to a person who is a related person under G.S. 105‑163.010.
The tax authorized by this section applies to gross receipts that are subject to tax under G.S. 105‑164.4(a)(2). Gross receipts from the short‑term lease or rental of heavy equipment are subject to a tax imposed by a city under this section if the place of business from which the heavy equipment is delivered is located in the city.
(c)	Payment. – A person whose principal business is the short‑term lease or rental of heavy equipment is required to remit a tax imposed by this section to the city finance officer. The tax is payable quarterly and is due by the last day of the month following the end of the quarter. The tax is intended to be added to the amount charged for the short‑term lease or rental of heavy equipment and paid to the heavy equipment business by the person to whom the heavy equipment is leased or rented.
(d)	Enforcement. – The penalties and collection remedies that apply to the payment of sales and use taxes under Article 5 of Chapter 105 of the General Statutes apply to a tax imposed under this section. The city finance officer has the same authority as the Secretary of Revenue in imposing these penalties and remedies.
(e)	Effective Date. – A tax imposed under this section becomes effective on the date set in the ordinance imposing the tax. The date must be the first day of a calendar quarter and may not be sooner than the first day of the calendar quarter that begins at least two months after the date the ordinance is adopted.
(f)	Repeal. – A city may, by ordinance, repeal a tax imposed under this section. The repeal is effective on the date set in the ordinance. The date must be the first day of a calendar quarter and may not be sooner than the first day of the calendar quarter that begins at least two months after the date the ordinance is adopted."
SECTION 24.(c)  This section does not affect the rights or liabilities of a county or city, a taxpayer, or another person arising under G.S. 160A‑215.2 or G.S. 153A‑156.1 before the effective date of this section; nor does it affect the right to any refund or credit of a tax that accrued under G.S. 160A‑215.2 or G.S. 153A‑156.1 before the effective date of this section. All existing ordinances or resolutions enacted under G.S. 160A‑215.2 or G.S. 153A‑156.1 prior to the effective date of this section shall continue in full force and effect until repealed, modified, or amended.  

effective date
SECTION 25.  Except as otherwise provided, this act is effective when it becomes law.