GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 487
AN ACT TO MODIFY THE FUEL TAX STATUTES TO ENABLE NORTH CAROLINA TO ENTER THE INTERNATIONAL FUEL TAX AGREEMENT.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-449.22 reads as rewritten:
"§ 105-449.22. Leased motor vehicles.
(a) Except as
provided in this section, the lessee of a motor vehicle, and not the lessor of
the motor vehicle, is the "user,""user-seller,"or
"supplier,"as the case may be, for the purposes of this
Article.
(b) A lessor of
a motor vehicle who gives written notice, by filing a report or otherwise, to
the Secretary that the lessor desires to be taxed as a user, user-seller or
supplier may be treated by the Secretary as a user, user-seller, or supplier
with respect to a motor vehicle leased to another by him as well as fuel
consumed by the leased motor vehicle when the lessor supplies or pays for the
fuel consumed by the motor vehicle or makes rental or other charges calculated
to include the cost of the fuel. A lessee may exclude from reports made
pursuant to this Article a motor vehicle of which he is the lessee if that
motor vehicle is leased from a lessor who is a user, user-seller, or supplier
pursuant to this section.
(c) Subsections
(a) and (b) govern the primary liability of lessors and lessees of motor
vehicles under this Article. Both the lessor and lessee, however, are jointly
and severally liable for compliance with this Article.
The user under this Article of fuel consumed by a leased motor vehicle whose operations are reported under Article 36B of this Chapter is the person who is the motor carrier under Article 36B for reporting operations of the motor vehicle. The user under this Article of fuel consumed by a leased motor vehicle whose operations are not reported under Article 36B of this Chapter is the person who is liable for payment for the fuel consumed by the motor vehicle."
Sec. 2. G.S. 105-449.37(a) reads as rewritten:
"(a) Definitions. -As
used in this Article unless the context clearly requires otherwise: The
following definitions apply in this Article:
(1) 'Motor carrier'
means every Motor carrier. - Every person, firm, or corporation who
operates or causes to be operated on any highway in this State a motor vehicle
used, designed, or maintained for transportation of persons or property and (i)
having two axles and a gross vehicle weight or registered gross vehicle weight
exceeding 26,000 pounds, (ii) having three or more axles regardless of weight,
or (iii) used in combination when the weight of the combination exceeds 26,000
pounds gross vehicle weight. The term does not include the United States,
the State or its political subdivisions, operators of special mobile equipment
as defined in G.S. 20-4.01(44), or nonprofit religious, educational,
charitable, or benevolent organizations; States, the State, or a
political subdivision of the State.
(1a) 'Motor vehicle' means Motor
vehicle. - A motor vehicle as defined in G.S. 20-4.01(23) except that the
term does not include special mobile equipment as defined in G.S.
20-4.01(44) or recreational vehicles; vehicles.
(2) 'Operations' means
operations Operations. - Operations of all vehicles described in
subdivision (1), whether loaded or empty and whether or not operated for compensation;
and compensation.
(3) 'Secretary' means
the Secretary. - The Secretary of Revenue."
Sec. 3. G.S. 105-449.39, as amended by Section 3 of Chapter 182 of the 1991 Session Laws, reads as rewritten:
"§ 105-449.39. Credit for payment of motor fuel tax.
Every motor carrier subject to the tax levied by this Article is entitled to a credit for tax paid by the carrier on fuel purchased in the State. A motor carrier who files a quarterly report is entitled to a credit at a rate equal to the flat cents-per-gallon rate plus the variable cents-per-gallon rate of tax in effect during the quarter for which the credit is claimed. A motor carrier who files an annual report is entitled to a credit at a rate equal to the flat cents-per-gallon rate plus the average of the two variable cents-per-gallon rates of tax in effect during the year for which the credit is claimed. To obtain a credit, the motor carrier must furnish evidence satisfactory to the Secretary that the tax for which the credit is claimed has been paid.
If the amount of a credit to which a motor carrier is
entitled for a reporting period exceeds the motor carrier's liability for that
reporting period, the excess may, in accordance with rules adopted by the
Secretary, be refunded to the motor carrier or carried forward and applied to
the motor carrier's tax liability for another reporting period. The Before
the Secretary may not allow a refund without auditing allows a
motor carrier a refund, the Secretary may audit the motor carrier's records
unless or require the motor carrier:
(1) Has
furnished a bond under G.S. 105-449.40; or
(2) Has complied
with this Subchapter and the rules adopted under the Subchapter for at least a
one-year period preceding the date the application for a refund is filed.
carrier to furnish a bond under G.S. 105-449.40."
Sec. 4. G.S. 105-449.40 reads as rewritten:
"§ 105-449.40. Refunds
to motor carriers who give Secretary may require bond.
A motor carrier may give a bond in an amount no less than
five hundred dollars ($500.00) nor more than ten thousand dollars ($10,000)
payable to the State and conditioned that the motor carrier will pay all taxes
due and to become due under this Article. So long as the bond remains in force
the Secretary may order refunds to the motor carrier in the amounts appearing
to be due on applications duly filed by the carrier under G.S. 105-449.39
without first auditing the records of the carrier. Such bond shall be in such
form and with such surety or sureties as may be required by the Secretary. (a)
Authority. - The Secretary may require a motor carrier to furnish a bond when
any of the following occurs:
(1) The motor carrier fails to file a report within the time required by this Article.
(2) The motor carrier fails to pay a tax when due under this Article.
(3) After auditing the motor carrier's records, the Secretary determines that a bond is needed to protect the State from loss in collecting the tax due under this Article.
(b) Amount. - A bond required of a motor carrier under this section may not be more than the larger of the following amounts:
(1) Five hundred dollars ($500.00).
(2) Four times the motor carrier's average tax liability or refund for a reporting period.
A bond must be in the form required by the Secretary."
Sec. 5. G.S. 105-449.42A reads as rewritten:
"§ 105-449.42A. Leased motor vehicles.
(a) Lessor in Leasing
Business. -Except as provided in this section, the lessee of a motor
vehicle, and not the lessor of the motor vehicle, is a "motor carrier"for
the purposes of this Article. A lessor who is regularly engaged in the
business of leasing or renting motor vehicles without drivers for compensation
is the motor carrier for a leased or rented motor vehicle unless the lessee of
the leased or rented motor vehicle gives the Secretary written notice, by
filing a report or otherwise, that the lessee is the motor carrier. In
that circumstance, the lessee is the motor carrier for the leased or rented
motor vehicle.
Before a lessee gives the Secretary written notice under this subsection that the lessee is the motor carrier, the lessee and lessor must make a written agreement for the lessee to be the motor carrier. Upon request of the Secretary, the lessee must give the Secretary a copy of the agreement.
(b) Independent
Contractor. -A lessor of a motor vehicle who gives written notice, by
filing a report or otherwise, to the Secretary that the lessor desires to be
taxed as a motor carrier may be treated by the Secretary as a motor carrier
with respect to a motor vehicle leased to another by him as well as motor fuel
consumed by the leased motor vehicle when the lessor supplies or pays for the
motor fuel consumed by the motor vehicle or makes rental or other charges
calculated to include the cost of the fuel. A lessee motor carrier may exclude
from reports made pursuant to this Article a motor vehicle of which he is the lessee
if that motor vehicle is leased from a lessor who is a motor carrier
pursuant to this section. The lessee of a motor vehicle that is leased
from an independent contractor is the motor carrier for the leased motor
vehicle unless either of the following applies:
(1) The motor vehicle is leased for fewer than 30 days.
(2) The motor vehicle is leased for at least 30 days and the lessor gives the Secretary written notice, by filing a report or otherwise, that the lessor is the motor carrier.
If either of these circumstances applies, the lessor is the motor carrier for the leased motor vehicle.
Before a lessor gives the Secretary written notice under subdivision (2) that the lessor is the motor carrier, the lessor and lessee must make a written agreement for the lessor to be the motor carrier. Upon request of the Secretary, the lessor must give the Secretary a copy of the agreement.
(c) Liability. - Subsections (a) and (b) govern the primary liability of lessors and lessees of motor vehicles under this Article. Both the lessor and lessee, however, are jointly and severally liable for compliance with this Article."
Sec. 6. G.S. 105-449.47 reads as rewritten:
"§ 105-449.47. Registration of vehicles.
A motor carrier may not operate or cause to be operated in
this State any vehicle listed in the definition of motor carrier unless both
the motor carrier has registered the vehicle and the motor
vehicle are registered with the Secretary for purposes of the tax imposed
by this Article with the Secretary. Article.
Upon application, the Secretary shall register a motor
carrier and shall issue a registration card and at least one identification
marker for a vehicle. each motor vehicle operated by the motor
carrier. The registration card A copy of the registration
of a motor carrier shall be carried in the each motor vehicle
for which it was issued operated by the motor carrier when the
vehicle is in this State. The An identification marker
shall be clearly displayed at all times and shall be affixed to the vehicle for
which it was issued in the place and manner designated by the Secretary. Every
identification marker issued shall bear a number that corresponds to the number
on the registration card issued for the same vehicle. Registration cards Registrations
and identification markers required by this section shall be issued on a
calendar year basis. The Secretary may renew registration cards and
identification markers without issuing new cards and markers. a
registration or an identification marker without issuing a new registration or
identification marker. All identification markers issued by the
Secretary remain the property of the State. The Secretary may withhold or
revoke a registration card and or an identification marker when a
motor carrier fails to comply with this Article or Article 36A of this
Subchapter."
Sec. 7. G.S. 105-449.49, as amended by Section 6 of Chapter 182 of 1991 Session Laws, reads as rewritten:
"§ 105-449.49. Temporary permits.
Upon application to the Secretary and payment of a fee of
twenty-five dollars ($25.00), a motor carrier may obtain a temporary permit
authorizing the carrier to operate a vehicle in the State without registering
the vehicle in accordance with G.S. 105-449.47 for not more than 20 days. A
motor carrier to whom a temporary permit has been issued may elect not to
report its operation of the vehicle during the 20-day period. A motor
carrier who files a report for a reporting period in which the carrier paid a temporary
permit fee may claim a credit for the amount of the fee. A motor carrier whose
operations are exclusively intrastate may obtain a refund of the fee by filing
a report for the reporting period in which the fee was paid."
Sec. 8. This act becomes effective January 1, 1992.
In the General Assembly read three times and ratified this the 2nd day of July, 1991.
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James C. Gardner
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives