GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
SESSION LAW 1998-95
AN ACT TO SIMPLIFY AND MODIFY PRIVILEGE LICENSE AND EXCISE TAXES AND RELATED PERMIT FEES.
The General Assembly of North Carolina enacts:
Section 1. The title of Article 2 of Chapter 105 of the General Statutes reads as rewritten:
"ARTICLE 2.
"Schedule B.
License Privilege Taxes."
Section 2. G.S. 105-33 reads as rewritten:
"§ 105-33. Taxes under this Article.
(a) General. - Taxes
in this Article or schedule shall be are imposed as State
license taxes for the privilege of carrying on the business, exercising the
privilege, or doing the act named, named. and nothing in this
Article shall be construed to relieve any person, firm, or corporation from the
payment of the tax prescribed in this Article or schedule: Provided, the
obtaining of a license required by this Article shall not of itself authorize
the practice of a profession, business, or trade for which a State qualification
license is required.
(b) If the business
made taxable or the privilege to be exercised under this Article is carried on
at two or more separate places, a separate State license for each place is
required. License Taxes. - A license tax imposed by this Article is an
annual tax. The tax is due by July 1 of each year. The tax is
imposed for the privilege of engaging in a specified activity during the fiscal
year that begins on the July 1 due date of the tax. The full amount of a
license tax applies to a person who, during a fiscal year, begins to engage in
an activity for which this Article requires a license. Before a person
engages in an activity for which this Article requires a license, the person
must obtain the required license.
(c) Every State
license issued under this Article or schedule shall be for 12 months, shall
expire on the thirtieth day of June of each year, and shall be for the full
amount of tax prescribed; provided, that where the tax is levied on an annual
basis and the licensee begins such business or exercises such privilege after
the first day of January and prior to the thirtieth day of June of each year,
then such licensee shall be required to pay one half of the tax prescribed
other than the tax prescribed to be computed and levied upon a gross receipts
and/or percentage basis for the conducting of such business or the exercising
of such privilege to and including the thirtieth day of June, next
following. Every county, city and town license issued under this Article
or schedule shall be for 12 months, and shall expire on the thirty-first day of
May or thirtieth day of June of each year as the governing body of such county,
city or town may determine: Provided, that where the licensee begins such
business or exercises such privilege after the expiration of seven months of
the current license year of such municipality, then such licensee shall be
required to pay one half of the tax prescribed other than the tax prescribed to
be computed upon a gross receipts and/or percentage basis. Other Taxes. -
The taxes imposed by this Article on a percentage basis or another basis are
due as specified in this Article.
(d) The State
license issued under G.S. 105-41 is a personal privilege to conduct the
profession or business named in the State license, is not transferable to any
other person, and does not limit the person named in the license to conducting
the profession or business and exercising the privilege named in the State
license to the county and/or city and location specified in the State license,
unless otherwise provided in this Article. Other licenses issued for a tax year
for the conduct of a business at a specified location shall upon a sale or
transfer of the business be deemed a sufficient license for the succeeding
purchaser for the conduct of the business specified at that location for the
balance of the tax year. If the holder of a license under this Article moves
the business for which a license tax has been paid to another location, a new
license may be issued to the licensee at a new location for the balance of the
license year, upon surrender of the original license for cancellation and the
payment of a fee of five dollars ($5.00) for each license certificate reissued.
(e) Repealed by Session Laws 1989, c. 584, s. 1.
(f) All
State taxes imposed by this Article shall be paid to the Secretary of Revenue,
or to one of his deputies; shall be due and payable on or before the first day
of July of each year, and after such date shall be deemed delinquent, and
subject to all the remedies available and the penalties imposed for the payment
of delinquent State license and privilege taxes; provided, that if a person,
firm, or corporation begins any business or the exercise of any privilege
requiring a license under this Article or schedule after the thirtieth day of
June and prior to the thirtieth day of the following June of any year, then
such person, firm, or corporation shall apply for and obtain a State license
for conducting such business or exercising any such privilege in advance, and
before the beginning of such business or the exercise of such privilege; and a
failure to so apply and to obtain such State license shall be and constitute a
delinquent payment of the State license tax due, and such person, firm, or
corporation shall be subject to the remedies available and penalties imposed
for the payment of such delinquent taxes.
(g) The taxes
imposed and the rates specified in this Article or schedule shall apply to the
subjects taxed on and after the first day of June, 1939, and prior to said date
the taxes imposed and the rates specified in the Revenue Act of 1937 shall
apply.
(h) Liability Upon
Transfer. -It shall be the duty of a A grantee, transferee,
or purchaser of any business or property subject to the State license taxes
imposed in this Article to must make diligent inquiry as to
whether the State license tax has been paid, but when such paid.
If the business or property has been granted, sold, transferred, or
conveyed to an innocent purchaser for value and without notice that the vendor
owed or is liable for any of the State license taxes imposed under this
Article, such the property, while in the possession of such the
innocent purchaser, shall not be is not subject to any lien
for such State license the taxes.
(i) The
tax collector of a county or city shall issue licenses required under this
Article by the governing body of the county or city and shall collect the taxes
due for these licenses.
(j) Any
person, firm, or corporation who shall wilfully make any false statement in an
application for a license under any section of this Article or schedule shall
be guilty of a Class 1 misdemeanor, which may include a fine which shall not be
less than the amount of tax specified under such section, and shall be in
addition to the amount of such tax.
(k) Repealed by Session Laws 1987, c. 190."
Section 3. G.S. 105-33.1 reads as rewritten:
"§ 105-33.1. Definitions.
The following definitions apply in this Article:
(1) City. - Defined in G.S. 105-228.90.
(1)(1a) Code. -
Defined in G.S. 105-228.90.
(2) Municipality.
- A municipal corporation organized under the laws of this State.
(3) Person. - Defined in G.S. 105-228.90.
(4) Secretary. - The
Secretary of Revenue. Defined in G.S. 105-228.90."
Section 4. G.S.105-37.1 reads as rewritten:
"§ 105-37.1. Amusements - Forms of amusement not otherwise taxed.
(a) Every person,
firm, or corporation person engaged in the business of giving, offering
offering, or managing any form of entertainment or amusement not
otherwise taxed or specifically exempted in under this Article,
for which an admission is charged, shall pay an annual license tax of fifty
dollars ($50.00) for each room, hall, tent or other place where such admission
charges are made.
In addition to the license tax levied above, such person,
firm, or corporation shall pay an additional a tax upon the gross
receipts of such the business at the rate of three percent
(3%). Reports shall be made to the Secretary of Revenue, in such form
as he may prescribe, within the first 10 days of each month covering all such
the gross receipts for the previous month, and the additional tax
herein levied shall be paid monthly at the time such the reports
are made. The annual license tax herein levied shall be treated as an
advance payment of the tax upon gross receipts herein levied, and the annual
license tax shall be applied as a credit upon or advance payment of the gross
receipts tax.
Every person, firm, or corporation person giving,
offering, or managing any dance or athletic contest of any kind, except high
school and elementary school athletic contests, for which an admission fee in
excess of fifty cents (50¢) is charged, shall pay an annual license tax of
fifty dollars ($50.00) for each location where such charges are made, and, in
addition, a tax upon the gross receipts derived from admission charges at
the rate of three percent (3%). The additional tax upon gross receipts
shall be levied and collected in accordance with such regulations as may be
made by the Secretary of Revenue. as prescribed by the Secretary. No
tax shall be levied on admission fees for high school and elementary school
contests.
Dances and other amusements actually promoted and managed
by civic organizations and private and public secondary schools, shall not be
subject to the license tax imposed by this section and the first one thousand
dollars ($1,000) of gross receipts derived from such events shall be exempt
from the gross receipts tax herein levied when the entire proceeds of such
dances or other amusements are used exclusively for the school or civic and
charitable purposes of such organizations and not to defray the expenses of the
organization conducting such dance or amusement. The mere sponsorship of dance
or other amusement by such a school, civic, or fraternal organization shall not
be deemed to exempt such dance or other amusement as provided in this
paragraph, but the exemption shall apply only when the dance or amusement is
actually managed and conducted by the school, civic, or fraternal organization
and the proceeds are used as herein before required.
Dances and other amusements promoted and managed by a
qualifying corporation that operates a center for the performing and visual
arts are exempt from the license tax and the gross receipts tax imposed under
this section if the dance or other amusement is held at the center.
"Qualifying corporation"means a corporation that is exempt
from income tax under G.S. 105-130.11(a)(3). "Center for the performing
and visual arts"means a facility, having a fixed location, that
provides space for dramatic performances, studios, classrooms and similar
accommodations to organized arts groups and individual artists. This exemption
shall not apply to athletic events.
The license and gross receipts taxes imposed by this
section do not apply to a person, firm, or corporation that is exempt from
income tax under Article 4 of this Chapter and is engaged in the business of
operating a teen center. A "teen center"is a fixed facility
whose primary purpose is to provide recreational activities, dramatic
performances, dances, and other amusements exclusively for teenagers.
(b) Counties shall not
levy any license tax on the business taxed under this section, but cities and
towns may levy a license tax not in excess of one half the base tax
levied herein. twenty-five dollars ($25.00).
(c) No tax
shall be collected pursuant to this section with respect to entertainments or
amusements offered or given on the Cherokee Indian reservation when the person,
firm or corporation giving, offering or managing such entertainment or
amusement is authorized to do business on the reservation and pays the tribal
gross receipts levy to the tribal council.
(d) It is not
the purpose of this Article to discourage agricultural fairs in the State, and
to further this cause, no carnival company taxable under this section may play
a "still date"in any county where there is a regularly
advertised agricultural fair, 30 days prior to the dates of the fair.
This subsection does not restrict the date on which a fair or tobacco festival
may be held if (i) it is held by a veteran's organization or post chartered by
Congress or organized and operated on a statewide or nationwide basis and (ii)
the organization or post has held the fair or festival annually since before
July 1, 1988."
Section 5. G.S. 105-38 reads as rewritten:
"§ 105-38.
Amusements - Circuses, menageries, wild west, dog and/or pony shows, etc. Circuses
and other traveling amusements.
(a) Every person,
firm, or corporation person engaged in the business of exhibiting
performances, such as a circus, menagerie, wild west show, dog and/or pony
show, or any other similar show, exhibition exhibition, or
performance similar thereto, performance not taxed in other
sections of this Article, shall apply for and obtain a State license from
the Secretary of Revenue for the privilege of engaging in such business, and
pay for such license a tax of fifty dollars ($50.00) for each day or part of a
day for each place in the State where exhibitions or performances are to be
given. pay a tax upon the gross receipts of the business at the rate of
three percent (3%).
(b) Every person,
firm, or corporation person by whom any show or exhibition taxed
under this section is owned or controlled shall file with the Secretary of
Revenue, Secretary, not less than five days before entering this
State for the purpose of such the exhibitions or performances
therein, a statement, under oath, setting out in detail the dates, times,
and places for the exhibitions or performances. such information
as may be required by the Secretary of Revenue covering the places in the State
where exhibitions or performances are to be given, the character of the
exhibitions, and such other and further information as may be required. Upon
receipt of such statement, the Secretary of Revenue shall fix and determine the
amount of State license tax with which such person, firm, or corporation is
chargeable, shall endorse his findings upon such statement, and shall transmit
a copy of such statement and findings to each such person, firm, or corporation
to be charged, to the sheriff or tax collector of each county in which
exhibitions or performances are to be given, and to the division deputy of the
Secretary of Revenue, with full and particular instructions as to the State
license tax to be paid. Before giving any of the exhibitions or performances
provided for in such statement, the person, firm, or corporation making such
statement shall pay the Secretary of Revenue the tax so fixed and determined.
If one or more of such exhibitions or performances included in such statement
and for which the tax has been paid shall be canceled, the Secretary of Revenue
may, upon proper application made to him, refund the tax for such canceled
exhibitions or performances. Every such person, firm, or corporation shall give
to the Secretary of Revenue a notice of not less than five days before giving
any of such exhibitions or performances in each county.
(c) The sheriff
of each county in which such exhibitions or performances are advertised to be
exhibited shall promptly communicate such information to the Secretary of
Revenue; and if the statement required in this section has not been filed as
provided herein, or not filed in time for certified copies thereof, with proper
instructions, to be transmitted to the sheriffs of the several counties and the
division deputy, the Secretary of Revenue shall cause his division deputy to
attend at one or more points in the State where such exhibitions or
performances are advertised or expected to exhibit, for the purpose of securing
such statement prescribed in this section, of fixing and determining the amount
of State license tax with which such person, firm, or corporation is taxable,
and to collect such tax or give instructions for the collection of such tax.
(d) Every such
person, firm, or corporation by whom or which any such exhibition or
performance described in this section is given in any county, city or town, or
within five miles thereof, wherein is held an annual agricultural fair, during
the week of such annual agricultural fair, shall pay a State license of one
thousand dollars ($1,000) for each exhibition or performance in addition to the
license tax first levied in this section, to be assessed and collected by the
Secretary of Revenue or his duly authorized deputy.
(e) The
provisions of this section, or any other section of this Article, shall not be
construed to allow without the payment of the tax imposed in this section, any
exhibition or performance described in this section for charitable, benevolent,
educational, or any other purpose whatsoever, by any person, firm, or
corporation who is engaged in giving such exhibitions or performances, no
matter what terms of contract may be entered into or under what auspices such
exhibitions or performances are given. It being the intent and purpose of this
section that every person, firm, or corporation who or which is engaged in the
business of giving such exhibitions or performances, whether a part or all of
the proceeds are for charitable, benevolent, educational, or other purposes or
not, shall pay the State license tax imposed in this section.
(f) Upon
all performances taxable under this section there is levied, in addition to the
license tax levied in this section, a tax upon the gross receipts of such
business at the rate of three percent (3%). The license tax herein levied shall
be treated as an advance payment of the tax upon gross receipts herein levied,
and the license tax shall be applied as a credit upon or advance payment of the
gross receipts tax. The Secretary of Revenue may adopt such regulations as may
be necessary to effectuate the provisions of this section and shall prescribe
the form and character of reports to be made, and shall have such authority of
supervision as may be necessary to effectuate the purpose of this Subchapter.
(g) Repealed.
(h) Counties, cities,
and towns Counties and cities may levy a license tax on the business
taxed under this section not in excess of one half of the license tax levied
by the State, but shall not levy a parade tax or a tax under subsection (g) of
this section. twenty-five dollars ($25.00) for each day or part of a day
for each place where exhibitions or performances are to be given."
Section 5.1. Article 2 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-38.1. Amusements - Motion picture shows.
(a) Tax. - A privilege tax at the rate of one percent (1%) is imposed on the gross receipts of a person who is engaged in the business of operating a motion picture show for which an admission is charged. The tax is due when a return is due. A return is due by the 10th day after the end of each month and covers the gross receipts received during the previous month. If a person offers an entertainment or amusement that includes both a motion picture taxable under this section and an entertainment or amusement taxable under G.S. 105-37.1 or G.S. 105-38, the tax in G.S. 105-37.1 or G.S. 105-38, as appropriate, applies to the entire gross receipts and the tax levied in this section does not apply.
(b) Exemption. - Gross receipts from a motion picture show promoted and managed by a qualifying corporation that operates a center for the performing and visual arts is exempt from the tax imposed under this section if the motion picture is shown at the center and if the showing of motion pictures is not the primary purpose of the center. As used in this subsection, 'qualifying corporation' and 'center for the performing and visual arts' have the same meaning as in G.S. 105-40."
Section 6. G.S. 105-40 reads as rewritten:
"§ 105-40.
Amusements - Certain exhibitions, performances, and entertainments exempt
from license tax.
The following forms of amusement are exempt from the taxes imposed under this Article:
(1) All
exhibitions, performances, and entertainments, except as in this Article
expressly mentioned as not exempt, produced by local talent exclusively, and
for the benefit of religious, charitable, benevolent or educational
purposes, and where as long as no compensation is paid to such
local talent shall be exempt from the State license tax. the local
talent.
(2) The North Carolina Symphony Society, Incorporated, as specified in G.S. 140-10.1.
(3) All exhibits, shows, attractions, and amusements operated by a society or association organized under the provisions of Chapter 106 of the General Statutes where the society or association has obtained a permit from the Secretary to operate without the payment of taxes under this Article.
(4) All outdoor historical dramas, as specified in Article 19C of Chapter 143 of the General Statutes.
(5) All elementary and secondary school athletic contests, dances, and other amusements.
(6) The first one thousand dollars ($1,000) of gross receipts derived from dances and other amusements actually promoted and managed by civic organizations when the entire proceeds of the dances or other amusements are used exclusively for civic and charitable purposes of the organizations and not to defray the expenses of the organization conducting the dance or amusement. The mere sponsorship of a dance or another amusement by a civic or fraternal organization does not exempt the dance or other amusement, because the exemption applies only when the dance or amusement is actually managed and conducted by the civic or fraternal organization.
(7) All dances and other amusements promoted and managed by a qualifying corporation that operates a center for the performing and visual arts if the dance or other amusement is held at the center. 'Qualifying corporation' means a corporation that is exempt from income tax under G.S. 105-130.11(a)(3). 'Center for the performing and visual arts' means a facility, having a fixed location, that provides space for dramatic performances, studios, classrooms, and similar accommodations to organized arts groups and individual artists. This exemption does not apply to athletic events.
(8) A person that is exempt from income tax under Article 4 of this Chapter and is engaged in the business of operating a teen center. A 'teen center' is a fixed facility whose primary purpose is to provide recreational activities, dramatic performances, dances, and other amusements exclusively for teenagers.
(9) All entertainments or amusements offered or given on the Cherokee Indian reservation when the person giving, offering, or managing the entertainment or amusement is authorized to do business on the reservation and pays the tribal gross receipts levy to the tribal council."
Section 7. G.S. 105-41 reads as rewritten:
"§ 105-41. Attorneys-at-law and other professionals.
(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); the tax does not apply to an
individual who is at least 75 years old. ($50.00).
(1) An attorney-at-law.
(2) A physician, a veterinarian, a surgeon, an osteopath, a chiropractor, a chiropodist, a dentist, an ophthalmologist, an optician, an optometrist, or another person who practices a professional art of healing.
(3) A professional engineer, as defined in G.S. 89C-3.
(4) A registered land surveyor, as defined in G.S. 89C-3.
(5) An architect.
(6) A landscape architect.
(7) A photographer, a canvasser for any photographer, or an agent of a photographer in transmitting photographs to be copied, enlarged, or colored.
(8) A real estate broker or a real estate salesman, as defined in G.S. 93A-2. A real estate broker or a real estate salesman who is also a real estate appraiser is required to obtain only one license under this section to cover both activities.
(9) A real estate appraiser, as defined in G.S. 93E-1-4. A real estate appraiser who is also a real estate broker or a real estate salesman is required to obtain only one license under this section to cover both activities.
(10) A person who solicits or negotiates loans on real estate as agent for another for a commission, brokerage, or other compensation.
(11) A mortician or embalmer licensed under G.S. 90-210.25.
(b) Persons practicing
the professional art of healing for a fee or reward shall be exempt from the
payment of the license tax levied in the preceding paragraph of this section,
if such persons are adherents of established churches or religious
organizations and confine their healing practice to prayer or spiritual means. The
following persons are exempt from the tax:
(1) A person who is at least 75 years old.
(2) A person practicing the professional art of healing for a fee or reward, if the person is an adherent of an established church or religious organization and confines the healing practice to prayer or spiritual means.
(3) A blind person engaging in a trade or profession as a sole proprietor. A 'blind person' means any person who is totally blind or whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or where the widest diameter of visual field subtends an angle no greater than 20 degrees. This exemption shall not extend to any sole proprietor who permits more than one person other than the proprietor to work regularly in connection with the trade or profession for remuneration or recompense of any kind, unless the other person in excess of one so remunerated is a blind person.
(c) Every person engaged in the public practice of accounting as a principal, or as a manager of the business of public accountant, shall pay for such license fifty dollars ($50.00), and in addition shall pay a license of twelve dollars and fifty cents ($12.50) for each person employed who is engaged in the capacity of supervising or handling the work of auditing, devising or installing systems of accounts.
(d) Every
licensed mortician or embalmer shall in like manner apply for and obtain from
the Secretary of Revenue a statewide license for practicing his profession,
whether for himself or in the employ of another, and pay for such license a tax
of fifty dollars ($50.00).
(e) Licenses issued under
this section are issued as personal privilege licenses and shall not be issued
in the name of a firm or corporation: Provided, that a corporation.
A licensed photographer having a located place of business in this State,
shall be State is liable for a license tax on each agent or solicitor,
solicitor employed by him the photographer for
soliciting business. If any person engages in more than one of the activities
for which a privilege tax is levied by this section, such the person
shall be is liable for a privilege tax with respect to each
activity engaged in.
(f) Repealed by Session Laws 1981, c. 17.
(g) License
Revocable for Failure To Pay Tax. Whenever it shall be made to appear to any
judge of the superior court that any person practicing any profession for which
the payment of a license tax is required by this section has failed, or fails,
to pay the professional tax levied in this section, and execution has been
issued for the same by the Secretary of Revenue and returned by the proper
officer "no property to be found,"or returned for other cause
without payment of the tax, it shall be the duty of the judge presiding in the
superior court of the county in which such person resides, upon presentation
therefor, to cause the clerk of said court to issue a rule requiring such
person to show cause by the next session of court why such person should not be
deprived of license to practice such profession for failure to pay such
professional tax. Such rule shall be served by the sheriff upon said person 20
days before the next session of the court, and if at the return term of court
such person fails to show sufficient cause, the said judge may enter a judgment
suspending the professional license of such person until all such tax as may be
due shall have been paid, and such order of suspension shall be binding upon
all courts, boards and commission having authority of law in this State with
respect to the granting or continuing of license to practice any such
profession.
(h) Counties, cities,
or towns shall Counties and cities may not levy any license tax on
the business or professions taxed under this section; section. and
the statewide license herein provided for shall privilege the licensee to
engage in such business or profession in every county, city, or town in this
State.
(i) Obtaining a license required by this Article does not of itself authorize the practice of a profession, business, or trade for which a State qualification license is required."
Section 8. Chapter 93B of the General Statutes is amended by adding the following new section to read:
"§ 93B-15. Payment of license fees by members of the armed forces.
An individual who is serving in the armed forces of the United States and to whom G.S. 105-249.2 grants an extension of time to file a tax return is granted an extension of time to pay any license fee charged by an occupational licensing board or as a condition of retaining a license granted by the board. The extension is for the same period that would apply if the license fee were a tax."
Section 9. G.S. 105-83 reads as rewritten:
"§ 105-83. Installment paper dealers.
(a) Every person engaged
in the business of dealing in, buying, or discounting installment paper, notes,
bonds, contracts, or evidences of debt, where debt for which, at
the time of or in connection with the execution of said the instruments,
a lien is reserved or taken upon personal property located in this State to
secure the payment of such the obligations, shall apply for
and obtain from the Secretary a State license for the privilege of engaging in
such business or for the purchasing of such obligations in this State, and
shall pay for such license an annual tax of one hundred dollars ($100.00).
(b) In addition
to obtaining a State license from the Secretary, each person subject to the tax
levied in subsection (a) shall submit to the Secretary quarterly no later
than the twentieth day of January, April, July, and October of each year, upon
forms prescribed by the Secretary, a full, accurate, and complete statement,
verified by the officer, agent, or person making the statement, of the total
face value of the installment paper, notes, bonds, contracts, and evidences
of debt obligations dealt in, bought, or discounted within the
preceding three calendar months and, at the same time, shall pay a tax of two
hundred and seventy-five thousandths of one percent (.275%) two hundred
seventy-seven thousandths of one percent (.277%) of the face value of these
obligations.
(c) If any person deals
in, buys, or discounts any obligations described in this section without obtaining
the license required by this section or paying a tax imposed by this
section, the person may not bring an action in a State court to enforce
collection of an obligation dealt in, bought, or discounted during the period
of noncompliance with this section until the person obtains the license and pays
the amount of tax, penalties, and interest due.
(d) This section does not apply to corporations liable for the tax levied under G.S. 105-102.3.
(e) Counties, cities,
and towns Counties and cities shall not levy any license tax
on the business taxed under this section."
Section 10. G.S. 105-102.3 reads as rewritten:
"§ 105-102.3. Banks.
There is hereby imposed upon every bank or banking
association, including each national banking association, that is operating in
this State as a commercial bank, an industrial bank, a savings bank created
other than under Chapter 54B of the General Statutes or the Home Owners' Loan
Act of 1933 (12 U.S.C. §§ 1461-68), a trust company, or any combination of such
facilities or services, and whether such bank or banking association,
hereinafter to be referred to as a bank or banks, be is organized,
under the laws of the United States or the laws of North Carolina, in the
corporate form or in some other form of business organization, an annual
privilege tax tax. A report and the privilege tax are due by
the first day of July of each year on forms provided by the Secretary. The
tax rate is in the amount of thirty dollars ($30.00) for each one
million dollars ($1,000,000) or fractional part thereof of total assets held as
hereinafter provided. provided in this section. The assets upon
which the tax is levied shall be determined by averaging the total assets shown
in the four quarterly call reports of condition (consolidating domestic
subsidiaries) for the preceding calendar year as required by bank regulatory authorities;
provided, authorities. If a bank has been in operation less than a
calendar year, then the assets upon which the tax is levied shall be determined
by multiplying the average of the total assets by a fraction, the denominator
of which is 365 and the numerator of which is the number of days of operation. however,
where a new bank commences operations within the State there shall be levied
and paid an annual privilege tax of one hundred dollars ($100.00) until such
bank shall have made four quarterly call reports of condition (consolidating
domestic subsidiaries) for a single calendar year; provided further, however,
where If a bank operates an international banking facility, as
defined in G.S. 105-130.5(b)(13), the assets upon which the tax is levied shall
be reduced by the average amount for the taxable year of all assets of the
international banking facility which are employed outside the United States, as
computed pursuant to G.S. 105-130.5(b)(13)c. For an out-of-state bank with one
or more branches in this State, or for an in-state bank with one or more branches
outside this State, the assets of the out-of-state bank or of the in-state bank
upon which the tax is levied shall be reduced by the average amount for the
taxable year of all assets of the out-of-state bank or of the in-state bank
which are employed outside this State. The tax imposed hereunder in
this section shall be for the privilege of carrying on the businesses
herein defined on a statewide basis regardless of the number of places or
locations of business within the State. Counties, cities and towns
shall Counties and cities may not levy a license or privilege
tax on the businesses taxed under this section, nor on the business of an
international banking facility as defined in subsection (b)(13) of G.S.
105-130.5."
Section 11. G.S. 105-102.6(d) reads as rewritten:
"(d) Tax. - Every publisher shall apply for and obtain from the Secretary a newsprint publisher tax reporting number and shall file an annual report with the Secretary by January 31 of each year. The report shall include the following information for the preceding calendar year:
(1) Tonnage of virgin newsprint consumed.
(2) Tonnage of nonvirgin newsprint consumed.
(3) Gross tonnage of newsprint consumed.
(4) Itemized percentages of recycled postconsumer recovered paper contained in tonnage of nonvirgin newsprint consumed.
(5) Recycled content tonnage.
(6) Recycled content percentage.
(7) Recycling tonnage.
In addition, each publisher whose recycled content percentage for
a calendar year is less than the applicable minimum recycled content percentage
provided in subsection (c) shall pay a tax of fifteen dollars ($15.00) on each
ton by which the publisher's recycled content tonnage falls short of the
tonnage of recycled postconsumer recovered paper needed to achieve the
applicable minimum recycled content percentage provided in subsection (c). This
tax is due when the report is filed. No county or municipality city may
impose a license tax on the business taxed under this section."
Section 12. G.S. 105-107 is repealed.
Section 13. G.S. 105-109(a) is repealed.
Section 14. G.S. 105-113.68(a)(6) reads as rewritten:
"(6) 'License' means a
certificate, issued pursuant to this Article by the Secretary or by a
city or county, that authorizes a person to engage in a phase of the alcoholic
beverage industry."
Section 15. G.S. 105-113.69 reads as rewritten:
"§ 105-113.69. License tax; effect of license.
The taxes imposed in Parts 2 and 3 Part 3 of
this Article are license taxes on the privilege of engaging in the activity
authorized by the license. Licenses issued by the State or a local
government under this Article authorize the licensee to engage in only
those activities that are authorized by the corresponding ABC permit. The
activities authorized by each retail ABC permit are described in Article 10 of
Chapter 18B, 18B of the General Statutes and the activities
authorized by each commercial ABC permit are described in Article 11 of that
Chapter."
Section 16. G.S. 105-113.70 reads as rewritten:
"§ 105-113.70. Issuance, duration, transfer of license.
(a) Issuance,
Qualifications. - Each person who receives an ABC permit shall obtain the
corresponding local license, if any, under this Article. All State
licenses are issued by the Secretary. All local licenses are issued by the
city or county where the establishment for which the license is sought is
located. The information required to be provided and the qualifications for a State
or local license are the same as the information and qualifications
required for the corresponding ABC permit. Upon proper application and payment
of the prescribed tax, issuance of a State or local license is mandatory
if the applicant holds the corresponding ABC permit. No local license
may be issued under this Article until the applicant has received from the ABC
Commission the applicable permit for that activity, and no county license may
be issued for an establishment located in a city in that county until the
applicant has received from the city the applicable license for that activity.
(b) Duration. - All licenses issued under this section are annual licenses for the period from May 1 to April 30.
(c) Transfer. - A license may not be transferred from one person to another or from one location to another.
(d) License Exclusive. -
Neither the State nor a A local government may not require a
license for activities related to the manufacture or sale of alcoholic
beverages other than the licenses stated in this Article."
Section 17. G.S. 105-113.72 is repealed.
Section 18. G.S. 105-113.74 is repealed.
Section 19. G.S. 105-113.75 is repealed.
Section 20. G.S. 105-113.76 is repealed.
Section 21. G.S. 105-113.79 reads as rewritten:
"§ 105-113.79. City wholesaler license.
A city may require city malt beverage and wine wholesaler
licenses for businesses located inside the city, but may not require a license
for a business located outside the city, regardless whether that business sells
or delivers malt beverages or wine inside the city. The city may charge an
annual tax of not more than twenty-five percent (25%) of the annual tax for
the equivalent State license as set by G.S. 105-113.74. thirty-seven
dollars and fifty cents ($37.50) for a city malt beverage wholesaler or a city
wine wholesaler license."
Section 22. G.S. 105-113.80(a) reads as rewritten:
"(a) Beer. - An excise tax
of fifty-three and one hundred seventy-seven one thousandths cents (53.177¢)
per gallon is levied on the sale of malt beverages at the rate of: beverages.
(1) Forty-eight
and three hundred eighty-seven one thousandths cents (48.387¢) per gallon on
malt beverages in barrels holding at least seven and three-fourths gallons; and
(2) Fifty-three
and three hundred seventy-six one thousandths cents (53.376¢) per gallon on
malt beverages in cans, bottles, barrels, or other containers holding less than
seven and three-fourths gallons."
Section 23. G.S. 105-113.83(c) reads as rewritten:
"(c) Railroad Sales
License.Sales. - This section does not affect the duty of a
holder of a State railroad sales license to remit excise taxes on alcoholic
beverages sold by that licensee in this State, as provided in G.S. 105-113.76 Each
person operating a railroad train in this State on which alcoholic beverages
are sold must submit monthly reports of the amount of alcoholic beverages sold
in this State and must remit the applicable excise tax due on the sale of these
beverages when the report is submitted. The report is due on or before
the 15th day of the month following the month in which the beverages are
sold. The report must be made on a form prescribed by the Secretary."
Section 24. G.S. 105-113.84 reads as rewritten:
"§ 105-113.84. Invoices; report of resident brewery, resident winery, or nonresident vendor.
(a) Invoice. - When a A
resident brewery, resident winery, or nonresident vendor that sells
or delivers wine or malt beverages to a North Carolina wholesaler or importer,
importer he shall give that wholesaler or importer two copies
of the sales invoice. He invoice and shall also file one copy
with the Secretary. The invoice shall state: state all of the
following:
(1) The name and address
of the licensee permit holder making the sale or delivery; delivery.
(2) The name, address, and
license permit number of the wholesaler or importer receiving the
beverages; beverages.
(3) The kind of beverage
sold or delivered; and delivered, including the number of cases.
(4) The exact quantities
of beverages sold or delivered, specified by size and type of container. containers.
(5) The total gallons of malt beverages, the total liters of unfortified wine, and the total liters of fortified wine.
(b) Monthly Report. -
Each resident brewery, resident winery, or nonresident vendor that sells or
delivers wine or malt beverages in North Carolina shall prepare and file with
the Secretary a monthly report, on a form provided by the Secretary, stating
the exact quantities of those beverages sold to North Carolina wholesalers or
importers during the previous month. The report shall specify the size and
type of containers sold. The report shall be filed on or before the
15th day of the month following the month in which the beverages are sold or
delivered."
Section 25. G.S. 105-113.86 reads as rewritten:
"§ 105-113.86. Bonds.
(a) Wholesalers and
Importers. - Each holder of a malt beverage A wholesaler license,
a wine wholesaler license, or an or importer license shall
furnish a bond in an amount of not less than five thousand dollars ($5,000) nor
more than fifty thousand dollars ($50,000) to cover his tax liability. ($50,000).
The bond shall be conditioned on compliance with this Article, shall be
payable to the State, shall be in a form acceptable to the Secretary, and shall
be secured by a corporate surety or by a pledge of obligations of the federal
government, the State, or a political subdivision of the State. The Secretary
shall proportion the bond amount to the anticipated tax liability of the wholesaler
or importer. The Secretary shall periodically review the sufficiency of bonds
furnished by wholesalers and importers, and shall increase the amount of a bond
required of a wholesaler or importer when the amount of the bond furnished no
longer covers the wholesaler's or importer's anticipated tax liability.
(b) Nonresident Vendors. -
The Secretary may require the holder of a nonresident vendor license ABC
permit to furnish a bond in an amount not to exceed two thousand dollars
($2,000). The bond shall be conditioned on compliance with this Article, shall
be payable to the State, shall be in a form acceptable to the Secretary, and
shall be secured by a corporate surety or by a pledge of obligations of the
federal government, the State, or a political subdivision of the State."
Section 26. G.S. 105-113.89 reads as rewritten:
"§ 105-113.89. Other applicable administrative provisions.
The administrative provisions of Article 9 of this Chapter
apply to this Article. In addition, the following administrative provisions
of Schedule B of this Chapter apply to the license taxes levied under this
Article: G.S. 105-103, 105-104, 105-105, 105-108, 105-109, 105-110, and
105-112. In applying the provisions of Schedule B to this Article, the month
"May"shall be substituted for the month "July."
Section 27. G.S. 105-249 is repealed.
Section 28. G.S. 105-249.1 is repealed.
Section 29. G.S. 18B-902 reads as rewritten:
"§ 18B-902. Application for permit; fees.
(a) Form. - An application for an ABC permit shall be on a form prescribed by the Commission and shall be notarized. The application shall be signed and sworn to by each person required to qualify under G.S. 18B-900(c).
(b) Investigation. - Before issuing a new permit, the Commission, with the assistance of the ALE Division, shall investigate the applicant and the premises for which the permit is requested. The Commission may request the assistance of local ABC officers in investigating applications. An applicant shall cooperate fully with the investigation.
(c) False Information. - Knowingly making a false statement in an application for an ABC permit shall be grounds for denying, suspending, revoking or taking other action against the permit as provided in G.S. 18B-104 and shall also be unlawful.
(d) Fees. - An application for an ABC permit shall be accompanied by payment of the following application fee:
(1) On-premises malt
beverage permit - $200.00. $400.00.
(2) Off-premises malt
beverage permit - $200.00. $400.00.
(3) On-premises
unfortified wine permit - $200.00. $400.00.
(4) Off-premises
unfortified wine permit - $200.00. $400.00.
(5) On-premises fortified
wine permit - $200.00. $400.00.
(6) Off-premises fortified
wine permit - $200.00. $400.00.
(7) Brown-bagging permit -
$200.00, $400.00, unless the application is for a restaurant seating
less than 50, in which case the fee shall be $100.00. $200.00.
(8) Special occasion
permit - $200.00. $400.00.
(9) Limited special
occasion permit - $25.00. $50.00.
(10) Mixed beverages permit -
$750.00. $1,000.
(11) Culinary permit - $100.00. $200.00.
(12) Unfortified winery permit -
$150.00. $300.00.
(13) Fortified winery permit -
$150.00. $300.00.
(14) Limited winery permit -
$150.00. $300.00.
(15) Brewery permit - $150.00. $300.00.
(16) Distillery permit - $150.00. $300.00.
(17) Fuel alcohol permit - $50.00. $100.00.
(18) Wine importer permit -
$150.00. $300.00.
(19) Wine wholesaler permit -
$150.00. $300.00.
(20) Malt beverage importer permit -
$150.00. $300.00.
(21) Malt beverage wholesaler permit -
$150.00. $300.00.
(22) Bottler permit - $150.00. $300.00.
(23) Salesman permit - $25.00. $100.00.
(24) Vendor representative permit -
$25.00. $50.00.
(25) Nonresident malt beverage vendor
permit - $50.00. $100.00.
(26) Nonresident wine vendor permit -
$50.00. $100.00.
(27) Any special one-time permit under
G.S. 18B-1002 - $25.00. $50.00.
(28) Winery special event permit -
$100.00. $200.00.
(29) Mixed beverages catering permit -
$100.00. $200.00.
(30) Guest room cabinet permit -
$750.00. $1,000.
(31) Liquor importer/bottler permit -
$250.00. $500.00.
(32) Cider and vinegar manufacturer
permit - $100.00. $200.00.
(33) Brew on premises permit -
$200.00. $400.00.
(e) Fee for
Combined Applications. - If application is made at the same time for retail
malt beverage, unfortified wine and fortified wine permits for a single
business location, the total fee for those applications shall be two hundred
dollars ($200.00). If application is made at the same time for brown-bagging
and special occasion permits for a single business location, the total fee for
those applications shall be three hundred dollars ($300.00). If application is
made at the same time for wine and malt beverage importer permits, the total
fee for those applications shall be one hundred fifty dollars ($150.00). If
application is made at the same time for wine and malt beverage wholesaler
permits, the total fee for those applications shall be one hundred fifty
dollars ($150.00). If application is made at the same time for nonresident malt
beverage vendor and nonresident wine vendor permits, the total fee for those
applications shall be fifty dollars ($50.00).
(f) Fee Not Refundable. - The fee required by subsection (d) shall not be refunded.
(g) Fees to Treasurer. - All fees collected by the Commission under this or any other section of this Chapter shall be remitted to the State Treasurer for the General Fund."
Section 30. G.S. 18B-903(b) reads as rewritten:
"(b) Renewal. -
Application for renewal of an ABC permit shall be on a form provided by the
Commission. An application for renewal shall be accompanied by an application
fee of twenty-five percent (25%) of the original application fee set in G.S.
18B-902, except that the renewal application fee for each mixed beverages
permit and each guest room cabinet permit shall be five seven hundred
fifty dollars ($500.00). ($750.00). A renewal fee
shall not be refundable."
Section 31. Sections 1 through 5, 6 through 13, 27, and 28 of this act become effective July 1, 1999. Section 5.1 of this act becomes effective October 1, 1998. The remaining sections of this act become effective May 1, 1999.
In the General Assembly read three times and ratified this the 5th day of August, 1998.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 8:50 a.m. this 14th day of August, 1998