A BILL TO BE ENTITLED
AN ACT to AUTHORIZE THE ACQUISITION OR CONSTRUCTION AND THE FINANCING, WITHOUT APPROPRIATIONS FROM THE GENERAL FUND, OF CERTAIN CAPITAL IMPROVEMENT PROJECTS OF THE CONSTITUENT INSTITUTIONS OF THE UNIVERSITY OF NORTH CAROLINA and to forgive certain sales tax assessments against continuing care retirement communities.
The General Assembly of North Carolina enacts:

part i. unc capital projects
SECTION 1.(a)  The purpose of this section is to authorize (i) the acquisition or construction of the capital improvement projects listed in this section for the respective institutions of The University of North Carolina and (ii) the financing of these projects with funds available to the institutions from gifts, grants, receipts, self‑liquidating indebtedness, Medicare reimbursements for education costs, hospital receipts from patient care, or other funds, or any combination of these funds, but not including funds received for tuition or appropriated from the General Fund of the State unless previously authorized by General Statute.
SECTION 1.(b)  The capital improvement projects, and their respective costs, authorized by this section to be acquired or constructed and financed as provided in subsection (a) of this section, including by revenue bonds, by special obligation bonds as authorized in subsection (d) of this section, or by both, are as follows:

University of North Carolina at Chapel Hill
Morehead Chemistry Laboratory HVAC Upgrades	$22,000,000

University of North Carolina at Chapel Hill
Campus‑Wide Life Safety Upgrades – Phase 1	$6,500,000

Western Carolina University
Lower Campus Residence Halls – Phase 2	$20,000,000

SECTION 1.(c)  At the request of the Board of Governors of The University of North Carolina and upon determining that it is in the best interest of the State to do so, the Director of the Budget may authorize an increase or decrease in the cost of, or a change in the method of, funding the projects authorized by this section. In determining whether to authorize a change in cost or funding, the Director of the Budget may consult with the Joint Legislative Commission on Governmental Operations.
SECTION 1.(d)  Pursuant to G.S. 116D‑26, the Board of Governors may issue, subject to the approval of the Director of the Budget, at one time or from time to time, special obligation bonds of the Board of Governors for the purpose of paying all or any part of the cost of acquiring, constructing, or providing for the projects authorized by subsection (b) of this section. The maximum principal amount of bonds to be issued shall not exceed the specified project costs in subsection (b) of this section plus five percent (5%) of such amount to pay issuance expenses, fund reserve funds, pay capitalized interest, and pay other related additional costs plus any increase in the specific project costs authorized by the Director of the Budget pursuant to subsection (c) of this section.

part ii. forgiveness of certain sales tax assessments against continuing care retirement communities
SECTION 2.  Article 9 of Subchapter I of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑244.4B.  Forgiveness of certain sales tax assessments of CCRCs.
(a)	Forgiveness. – The Secretary may forgive one hundred percent (100%) of a sales and use tax assessment against a taxpayer who requests relief for State and local sales and use taxes and waive any penalties imposed as part of the assessment when the assessment is the result of an audit of the taxpayer by the Department, and all of the following apply:
(1)	The taxpayer is a provider of continuing care. The terms "provider" and "continuing care" have the same meanings as defined in G.S. 58‑64‑1.
(2)	The taxpayer has a certificate of registration from the Department as required under G.S. 105‑164.4.
(3)	The taxpayer remitted to the Department during the period under audit all the sales and use taxes it collected during that period.
(4)	The taxpayer had not been informed by the Department in a prior audit to collect sales and use taxes in the circumstance that is the basis of the assessment, as reflected in the written audit comments of the prior audit.
(5)	The taxpayer had not requested and received from the Department a private letter ruling advising to collect sales and use taxes in the circumstance that is the basis of the assessment.
(6)	The taxpayer had not received other specific written guidance from the Department advising it to collect sales and use tax in the circumstance that is the basis of the assessment for which it seeks reduction.
(7)	The assessment is based on the failure to collect sales tax on items subject to State and local sales and use tax sold to guests or residents of a continuing care facility owned or operated by the taxpayer who do not reside in a nursing home or assisted living unit authorized by the North Carolina Department of Insurance.
(8)	The taxpayer meets one of the following:
a.	The taxpayer received a proposed assessment dated on or before June 1, 2020, timely filed a request for review, and files a written request with the Secretary on or before August 1, 2020, to request the amount of sales or use taxes be reduced as provided in this section citing the specific reasons therefor. The Department does not need to take further action on the taxpayer's request for review unless the taxpayer states in writing, when filing a request for reduction under this section, that the reduction does not resolve the taxpayer's objection to the proposed assessment and that the taxpayer wishes to continue the Departmental review.
b.	The taxpayer received a proposed assessment dated on or before June 1, 2020, did not file a request for review, paid the tax due, and files a written request with the Secretary on or before August 1, 2020, to request the amount of sales or use taxes be reduced as provided in this section citing the specific reasons.
c.	The taxpayer receives a proposed assessment after June 1, 2020, and timely files a request for review as provided in G.S. 105‑241.11 and files a written request with the Secretary no later than 45 days from the date of the notice of the proposed assessment to request the amount of sales or use taxes be reduced as provided in this section citing the specific reasons therefor.
(b)	Application. – This section applies to the following for a tax period ending prior to January 1, 2021:
(1)	A proposed assessment or portion of a proposed assessment.
(2)	An assessment that becomes collectible under G.S. 105‑241.22.
(3)	A pending request for review case.
(4)	A pending contested case hearing at the Office of Administrative Hearings.
(5)	This section does not authorize a refund for sales or use taxes that were originally collected and remitted to the Department."

part iii. effective date
SECTION 3.  This act is effective when it becomes law.