North Carolina 2017-2018 Session Status: Enacted

SB 628 — Various Changes to the Revenue Laws.

Last action — Signed by Gov. 8/11/2017

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  1. ✓
    Introduced
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    Passed Senate
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    Passed House
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    To Executive
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    Enacted

This bill has been enacted into law. Introduced April 04, 2017. Enacted.

Prognosis

Likely to advance 76% · moderate confidence

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High

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  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    2 primary, 2 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

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Bill Text

What changed in the latest version

1302 added · 1500 removed

Plain-language change summary

In the recent update to Senate Bill 628, the list of appliances defined under the bill has been clarified by correcting a term to "refrigerator-freezer" instead of "refrigerator, freezer." This change helps ensure a more accurate understanding of what appliances are included, which is important for regulatory purposes and for any businesses affected by the bill. By making this terminology clearer, the bill aims to avoid confusion and ensure compliance by those who need to follow the regulations outlined.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S 2 SENATE BILL 628 Finance Committee Substitute Adopted 5/24/17 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S 1 SENATE BILL 628 Short Title:
Senators Tillman, Brock, Tucker (Primary Sponsors);
and Krawiec.
April 5, 2017 A BILL TO BE ENTITLED AN ACT TO MAKE VARIOUS CHANGES TO THE REVENUE LAWS.
Rules and Operations of the Senate April 5, 2017 A BILL TO BE ENTITLED AN ACT TO MAKE VARIOUS CHANGES TO THE REVENUE LAWS.
… *S628-v-2* General Assembly Of North Carolina Session 2017 (2) It receives during its taxable year more than eighty percent (80%) of its gross income from corporations in which it owns directly or indirectly more than fifty percent (50%) of the outstanding voting stock or stock, voting capital interests.interests, or ownership interests." SECTION 1.3.(a) G.S.
… *S628-v-1* General Assembly Of North Carolina Session 2017 (2) It receives during its taxable year more than eighty percent (80%) of its gross income from corporations in which it owns directly or indirectly more than fifty percent (50%) of the outstanding voting stock or stock, voting capital interests.interests, or ownership interests." SECTION 1.3.(a) G.S.
– A corporation's tax base is the greatest of the following:
– A corporation's tax base is the greater of the following:
…." Page 2 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 SECTION 1.3.(b) This section becomes effective for taxable years beginning on or after January 1, 2018, and is applicable to the calculation of franchise tax reported on the 2017 and later corporate income tax returns.
…." Page 2 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 SECTION 1.3.(b) This section becomes effective for taxable years beginning on or after January 1, 2018, and is applicable to the calculation of franchise tax reported on the 2017 and later corporate income tax returns.
In this event, no the transferor must provide the transferee with documentation detailing the amount of rehabilitation expenses and credit.
In this event, the transferor must provide the transferee with documentation detailing the amount of rehabilitation expenses and credit.
No other taxpayer may claim such credit.
no No other taxpayer may claim such credit.
(4) "Commercial domicile" means the Commercial domicile.
(2)(4) "Commercial domicile" means the Commercial domicile.
and that owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, the transportation of goods or persons, or Senate Bill 628-Second Edition Page 3 General Assembly Of North Carolina Session 2017 the production, storage, transmission, sale, delivery or furnishing of electricity, water, steam, oil, oil products, or gas.
and that owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, the transportation of goods or persons, or Senate Bill 628-First Edition Page 3 General Assembly Of North Carolina Session 2017 the production, storage, transmission, sale, delivery or furnishing of electricity, water, steam, oil, oil products, or gas.
"Railway operating revenue" from business done within this State shall mean "railway operating revenue" from business wholly within this State, plus the equal mileage proportion within this State of each item of "railway operating revenue" received from the interstate Page 4 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 business of the company.
"Railway operating revenue" from business done within this State shall mean "railway operating revenue" from business wholly within this State, plus the equal mileage proportion within this State of each item of "railway operating revenue" received from the interstate Page 4 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 business of the company.
Senate Bill 628-Second Edition Page 5 General Assembly Of North Carolina Session 2017 (q) All apportionable income of a telegraph company shall be apportioned by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor and the denominator of which is three.
Senate Bill 628-First Edition Page 5 General Assembly Of North Carolina Session 2017 (q) All apportionable income of a telegraph company shall be apportioned by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor and the denominator of which is three.
– Receipts from transportation of a petroleum-based liquids pipeline company shall be apportioned by multiplying the income by a fraction, the numerator of which is the number of barrel miles in this State during the tax year and the denominator of which is the total number of barrel miles everywhere during the tax year.
– Receipts from transportation of a petroleum-based liquids pipeline company or gas pipeline company shall be apportioned by multiplying the income by a fraction, the numerator of which is the number of traffic units in this State during the tax year, and the denominator of which is the total number of traffic units everywhere during the tax year.
For purposes of this section, the term "barrel mile" means one barrel of liquid property transported one mile.
For purposes of this section, the term "traffic unit" means one or more of the following:
…." SECTION 1.5.(b) G.S.
105-130.4(s2), as enacted by subsection (a) of this section, reads as rewritten:
"(s2) Pipeline Company.
– Receipts from transportation of a petroleum-based liquids pipeline company or a gas pipeline company subject to rate regulation by the Federal Energy Regulatory Commission shall be apportioned by multiplying the income by a fraction, the numerator of which is the number of barrel miles traffic units in this State during the tax year, and the denominator of which is the total number of barrel miles traffic units everywhere during the tax year.
For purposes of this section, the term "barrel mile" "traffic unit" means one of the following:
– One cubic foot of gaseous property transported one mile." SECTION 1.5.(c) Subsection (a) of this section is effective for taxable years beginning on or after January 1, 2017.
– One cubic foot of gaseous property transported one mile.
If Section 38.7(a) of Senate Bill 257 of the 2017 Regular Session of the 2017 General Assembly is enacted, then subsection (b) of this section becomes Page 6 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 effective for taxable years beginning on or after January 1, 2018.
(3) Other.
The remainder of this section is effective when it becomes law.
– Another appropriate measure of product movement." SECTION 1.5.(b) This section is effective for taxable years beginning on or after January 1, 2017.
105-130.7B(b) reads as rewritten:
105-130.7B(b)(4) reads as rewritten:
"(b) Definitions.
"(4) Qualified interest expense.
– The definitions in G.S.
105-130.7A apply in this section.
In addition, the following definitions apply in this section:
… (3a) Proportionate share of interest.
– The amount of taxpayer's net interest expense paid or accrued directly to or through a related member to an ultimate payer divided by the total net interest expense of all related members that is paid or accrued directly to or through a related member to the same ultimate payer, multiplied by the interest paid or accrued to a person who is not a related member by the ultimate payer.
Any amount that is distributed, paid, or accrued directly or through a related member that is not treated as interest under this Part does not qualify.
In determining whether a nominal debt instrument creates deductible interest allowable under this section, the Secretary will not apply the covered debt instrument rules contained in the regulations promulgated under section 385 of the Code.
(4) Qualified interest expense.
…." SECTION 1.6.(c) This section is effective for taxable years beginning on or after January 1, 2017.
…." Page 6 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 SECTION 1.6.(c) This section is effective for taxable years beginning on or after January 1, 2017.
105-131(b)(4) and (5), and such other information as the Secretary may require." SECTION 1.9.(a) G.S.
105-131(b)(4) and (b)(5), and such other information as the Secretary may require." SECTION 1.9.(a) G.S.
Senate Bill 628-Second Edition Page 7 General Assembly Of North Carolina Session 2017 "(d) S Corporations and Partnerships.
"(d) S Corporations and Partnerships.
– In order to calculate the numerator of the fraction provided in subsection (b) of this section, the amount of a shareholder's pro rata share of S Corporation income that is includable in the numerator is the shareholder's pro rata share of the S Corporation's income attributable to the State, as defined in G.S.
105-131(b)(4).
In order to calculate the numerator of the fraction provided in subsection (b) of this section for a partner in a partnership or a member of a partnership or other another unincorporated business that has one or more nonresident partners or members and operates in one or more other states, the amount of the partner's or member's distributive share of income of the business plus any guaranteed payments made to a partner from the partnership that is includable in the numerator is determined by multiplying the total net income of the business by the ratio ascertained under the provisions of G.S.
105-130.4.
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As used in this subsection, total net income means the entire gross income of the business less all expenses, taxes, interest, and other deductions allowable under the Code that were incurred in the operation of the business." SECTION 1.9.(e) G.S.
105-153.4(d) reads as rewritten:
"(d) S Corporations and Partnerships.
As used in this subsection, total net income means the entire gross income of the business less all expenses, taxes, interest, and other deductions allowable under the Code that were incurred in the operation of the business." SECTION 1.9.(f) G.S.
As used in this subsection, total net income means the entire gross income of the business less Senate Bill 628-First Edition Page 7 General Assembly Of North Carolina Session 2017 all expenses, taxes, interest, and other deductions allowable under the Code that were incurred in the operation of the business." SECTION 1.9.(e) G.S.
It shall state specifically the items of the partnership's gross income, the deductions allowed under Page 8 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 the Code, each partner's distributive share of the partnership's income, and the adjustments required by this Part.
It shall state specifically the items of the partnership's gross income, the deductions allowed under the Code, each partner's distributive share of the partnership's income, and the adjustments required by this Part.
A partner's distributive share of partnership net income includes any guaranteed payments made to the partner.
A partner's distributive share of partnership net income includes any guaranteed payments made to the partner as defined in G.S.
105-134.1.
The distributive share of the income of each nonresident partner includes any guaranteed payments made to the partner.
The distributive share of the income of each nonresident partner includes any guaranteed payments made to the partner as defined in G.S.
105-134.1.
…." SECTION 1.9.(g) Subsections (a) and (c) of this section are effective for taxable years beginning before January 1, 2014.
…." SECTION 1.10.(a) G.S.
Subsections (b) and (d) of this section are effective for taxable years beginning on or after January 1, 2014.
Subsection (e) of this section is effective for taxable years beginning on or after January 1, 2015.
The remainder of this section is effective when it becomes law, and subsection (f) of this section applies to all taxable years.
SECTION 1.10.(a) G.S.
… (f) Total Tax Liability.
… Page 8 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 (f) Total Tax Liability.
The aggregate amount of tax payable under this section for any other a captive insurance company may company, other than a protected cell captive insurance company or a special purpose captive insurance company that has a cell or Senate Bill 628-Second Edition Page 9 General Assembly Of North Carolina Session 2017 series structure similar to that of a protected cell captive insurance company, shall not be less than five thousand dollars ($5,000) and may not exceed one hundred thousand dollars ($100,000).($5,000).
The aggregate amount of tax payable under this section for any other a captive insurance company company, other than a protected cell captive insurance company or a special purpose captive insurance company, which has a cell or series structure similar to that of a protected cell captive insurance company, may shall not be less than five thousand dollars ($5,000) and may shall not exceed one hundred thousand dollars ($100,000).
The minimum tax under this section for a protected cell captive insurance company or a special purpose captive insurance company that has a cell or series structure similar to that of a protected cell captive insurance company, shall not be less than five thousand dollars ($5,000) and shall apply to the protected cell captive insurance company or special purpose captive insurance company as a whole and not to each cell or series.
The minimum tax under this section for a protected cell captive insurance company or a special purpose captive insurance company, which has a cell or series structure similar to that of a protected cell captive insurance company, shall not be less than five thousand dollars ($5,000) and shall apply to the protected cell captive insurance company or special purpose captive insurance company as a whole and not to each cell or series.
The maximum tax to be paid by a protected cell captive insurance company or a special purpose captive insurance company that has a cell or series structure, shall be the greater of either five thousand dollars ($5,000) or the aggregate of the tax liabilities of the core and each cell or series within the insurance company.
The maximum tax to be paid by a protected cell captive insurance company or a special purpose captive insurance company, which has a cell or series structure, shall be the greater of either five thousand dollars ($5,000) or the aggregate of the tax liabilities of the core and each cell or series within the insurance company.
The maximum tax liability attributed to any one cell or series of the insurance company shall be one hundred thousand dollars ($100,000).
(1) Common ownership and control shall mean ownership and control of two or more captive insurance companies by the same person.
(1) Common ownership and control shall mean ownership and control of two or more captive insurance companies by the same person or group of persons.
c.
Senate Bill 628-First Edition Page 9 General Assembly Of North Carolina Session 2017 c.
SECTION 1.11.(a) G.S.
105-228.5(d)(3) reads as rewritten:
"(3) Additional Rate on Property Coverage Contracts.
– An additional tax at the rate of seventy-four hundredths percent (0.74%) applies to gross premiums on insurance contracts for property coverage.
The tax is imposed on ten percent (10%) of the gross premiums from insurance contracts for automobile physical damage coverage and on one hundred percent (100%) of the gross premiums from all other contracts for property coverage.
Twenty percent (20%) of the net proceeds of this additional tax must be credited to the Volunteer Fire Department Fund established in Article 87 of Chapter 58 of the General Statutes.
Twenty percent (20%) of the net proceeds must be credited to the Department of Insurance for disbursement pursuant to G.S.
58-84-25.
Up to twenty percent (20%), as determined in accordance with G.S.
58-87-10(f), must be credited to the Workers' Compensation Fund.
The remaining net proceeds must be credited to the General Fund.
The additional tax imposed on property coverage contracts under this subdivision is a special purpose assessment based on gross premiums and not a gross premiums tax." SECTION 1.11.(b) The gross premiums tax is a tax imposed on the gross premiums of insurers, Article 65 corporations, health maintenance organizations, and self-insurers.
Entities subject to the gross premiums tax are not subject to franchise or income taxes.
In S.L.
2009-548, the General Assembly broadened the taxes against which the business and energy tax credits could be taken from income and franchise taxes to income, franchise, and gross premiums taxes.
The gross premiums tax rate is set in G.S.
105-228.5(d)(1) and (2).
Separate and apart from the gross premiums taxes, G.S.
105-228.5(d)(3) imposes an additional tax that is calculated using a person's gross premiums but is not considered part of the gross premiums tax imposition.
The Department of Revenue has historically administered the gross premium tax and the additional tax imposed under G.S.
105-228.5 as two separate and distinct taxes.
Satisfied with this administration, the General Assembly did not address the separate treatment of the two taxes in S.L.
2009-548.
It is the intent of this section to further clarify for taxpayers the accuracy of and to endorse the Department's interpretation of the current and continuing state of the law by expressly codifying the long-standing interpretation of the additional tax imposed by G.S.
105-228.5(d)(3) as a separate and distinct tax that is based upon gross premiums but is not a gross premiums tax.
"§ 105-164.3.
§ 105-164.3.
Page 10 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 … (1i) Bundled transaction.
… (1i) Bundled transaction.
Products are not sold for one nonitemized price if an invoice or another sales document made available to the purchaser separately identifies the price of each product.
Products are not sold for one nonitemized price if an invoice or another sales document made available to the purchaser separately Page 10 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 identifies the price of each product.
– An addition or alteration to real property that is permanently affixed or installed to real property.
– Defined in G.S.
The term does not include activities listed in subdivision (33l) of this section as repair, maintenance, and installation services.
105-164.4H.
The term does include the following:
… (11b) Free-standing appliance.
a.
– An appliance commonly thought of as a household device operated by gas or electric current.
New construction, reconstruction, or remodeling.
Examples include a dishwasher, washing machine, clothes dryer, refrigeratorfreezer, microwave, and range.
b.
Performance of work that requires the issuance of a permit under the State Building Code, other than repair or replacement of electrical components, gas logs, water heater, and similar individual items that are not part of new construction, reconstruction, or remodeling.
c.
Installation of utilities on utility-owned land, right-of-way, or easement, notwithstanding that charges for such are included in the gross receipts derived from services subject to the combined general rate under G.S.
105-164.4.
d.
Installation of equipment or fixture that is attached to real property so that removal of the item would cause physical, functional, or economic damage to the property and that is capitalized under one or more of the following:
the Code, generally accepted accounting principles, or International Financial Reporting Standards.
e.
Painting or wallpapering of real property, except where painting or wallpapering is incidental to the repair, maintenance, and installation service.
f.
Replacement or installation of a septic tank system, siding, roof, plumbing, electrical, commercial refrigeration, irrigation, sprinkler, or other similar system.
The term does not include the repair, replacement, or installation of electrical or plumbing components, water heaters, gutters, and similar individual items that are not part of new construction, reconstruction, or remodeling.
g.
Replacement or installation of a heating, ventilation, and air conditioning unit or system.
The term does not include the repair, replacement, or installation of gas logs, water heaters, pool heaters, and similar individual items that are not part of new construction, reconstruction, or remodeling.
h.
Replacement or installation of roads, driveways, parking lots, patios, decks, and sidewalks.
i.
Services performed to resolve an issue that was part of a real property contract if the services are performed within six months of completion of the real property contract or, for new construction, within 12 months of the new structure being occupied for the first time.
j.
Landscaping.
… Senate Bill 628-Second Edition Page 11 General Assembly Of North Carolina Session 2017 (11b) Free-standing appliance.
– An appliance commonly thought of as a household machine operated by gas or electric current.
Examples include installation of a dishwasher, washing machine, clothes dryer, refrigerator, freezer, microwave, and range, regardless of whether the range is slide-in or drop-in.
Landscaping.
and the application of seed, mulch, pine straw, pesticide, or fertilizer to a lawn or yard.an area of land.
and the application of seed, mulch, pesticide, or fertilizer to a lawn or yard.an area of land.
The term does not include services to trees, shrubs, flowers, and similar items in pots or in buildings.
– A contract that includes both a real property contract for a capital improvement and a repair, maintenance, and installation service that is not related to the capital improvement.
– Defined in G.S.
105-164.4H.
– A service contract for a motor vehicle or for one or more components, systems, or accessories for a motor vehicle when sold by a motor vehicle dealer or by or on behalf of dealer, by a motor vehicle service agreement company for a motor vehicle or for one or more components, systems, or accessories for a motor vehicle.
– A service contract for a motor vehicle or for one or more components, systems, or accessories for a motor vehicle when sold by a motor vehicle dealer or by or on behalf of dealer, by a motor vehicle service agreement company company, or by a motor vehicle dealer on behalf of a motor vehicle service agreement company.
company, or by a motor vehicle dealer on behalf of a motor vehicle service agreement company.
for a motor vehicle or for one or more components, systems, or accessories for a motor vehicle.
66-370.is a person other than a motor vehicle dealer that is an obligor of a service contract for a motor vehicle or for one or more components, systems, or accessories for a motor vehicle and who is not an insurer.
66-370.is a person other than a motor vehicle dealer that issues a service contract for a motor vehicle or for one or more components, systems, or accessories for a motor vehicle and who is not an insurer.
… (24a) New construction.
– Construction of or site preparation for a permanent new building, structure, or fixture on land or an increase in the square footage of an existing building, structure, or fixture on land.
A manufactured home or a modular home that is placed on a permanent foundation.on land.
A manufactured home or a modular home that is placed on a permanent foundation.foundation, as established by the Department of Insurance.
(33f) Real property contractor.
… (33i) Repair, maintenance, and installation services.
– A person that contracts to perform a real property contract in accordance with G.S.
– The term includes the activities listed in this subdivision and applies to tangible personal property, motor vehicle, digital property, and real property exceptproperty.
105-164.4H.
The term does not include tangible personal property or digital property installed or applied by a real property contractor pursuant to to perform a capital improvement to real property contract taxed in accordance with G.S.
The term includes a general contractor, a subcontractor, or a builder for purposes of G.S.
105-164.4H:G.S.
105-164.4H.this Article.
105-164.4H, and the term does not include landscaping services.
Page 12 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 (33g) Reconstruction.
Senate Bill 628-First Edition Page 11 General Assembly Of North Carolina Session 2017 a.
– Rebuild or construct again a prior existing permanent building, structure, or fixture on land and may include a change in the square footage from the prior existing building, structure, or fixture on land.
(33h) Related member.
– Defined in G.S.
105-130.7A.
(33i) Remodeling.
– A transaction comprised of multiple services to restore, improve, alter, or update real property that may otherwise be subject to tax as repair, maintenance, and installation services if separately performed.
The term includes a transaction where the internal structure or design of one or more rooms or areas within a room or building are substantially changed and tangible personal property or digital property is installed or applied and becomes part of real property.
The term does not include a single repair, maintenance, and installation service such as installation of carpet, flooring, floor coverings, floor refinishing, windows, doors, cabinets, countertops, and other installations where the item being installed may replace a similar existing item.
The term does not include a transaction where the true purpose is a repair, maintenance, and installation service no matter that another repair, maintenance, and installation service is performed that is incidental to the true purpose of the transaction;
examples include repair of sheetrock that includes applying paint, replacement of cabinets that includes installation of caulk or molding, and the installation of hardwood floors that includes installation of shoe molding.
(33h)(33j) Remote sale.
– A sale of tangible personal property or digital property ordered by mail, by telephone, via the Internet, or by another similar method, to a purchaser who is in this State at the time the order is remitted, from a retailer who receives the order in another state and delivers the property or causes it to be delivered to a person in this State.
It is presumed that a resident of this State who remits an order was in this State at the time the order was remitted.
(33k) Renovation.
– Same meaning as the term "remodeling." (33i)(33l) Repair, maintenance, and installation services.
– The term includes the activities listed in this subdivision and applies to tangible personal property, motor vehicle, digital property, and real property except tangible personal property or digital property installed or applied by a real property contractor pursuant property.
The term does not include services defined as a capital improvement to a real property contract taxed in accordance with G.S.
105-164.4H:
a.
The term includes activities that may lead to the issuance of an inspection report.
The term includes activities that may lead to the production of an inspection report.
The term includes the installation of carpet, flooring, floor coverings, floor Senate Bill 628-Second Edition Page 13 General Assembly Of North Carolina Session 2017 refinishing, windows, doors, cabinets, countertops, and other installations where the item being installed replaces a similar existing item and the installation of the item is not part of a capital improvement.
The term includes the installation of carpet, flooring, floor coverings, windows, doors, cabinets, countertops, and other installations where the item being installed may replace a similar existing item and the installation of the item is not a capital improvement.
– A contract where the obligor under the contract agrees to maintain, monitor, inspect, or repair repair, or provide another service included in the definition of repair, maintenance, and installation service to digital property or property, tangible personal property property, or real property for a period of time or some other defined measure, regardless of whether the property becomes a part of or is applied to real property.
– A contract where the obligor under the contract agrees to maintain, monitor, inspect, or repair digital property or tangible personal property for a period of time or some other defined measure, regardless of whether the property becomes a part of or is applied to real property.
measure.
service, but generally includes a contract where the obligor must provide a service included in the definition of repair, maintenance, and installation services as a condition of the contract.
service, but generally includes a contract where the obligor under the contract agrees to provide an activity included in the definition of repair, maintenance, and installation services.
Examples include a warranty agreement other than a manufacturer's warranty or dealer's warranty provided at no charge to the purchaser, an extended warranty agreement, a maintenance agreement, a repair contract, agreement, or a similar agreement or contract.
Examples include a warranty agreement other than a manufacturer's warranty or dealer's warranty provided at no charge to the purchaser, an extended warranty agreement, a maintenance agreement, a repair contract, or a similar agreement or contract.
A sale of a free-standing appliance is a retail sale of tangible personal property.
A sale of a free-standing appliance is a retail sale of tangible personal property, regardless of whether the property is installed or applied to real property.
… (13) The general rate of tax applies to the sales price of an item or service subject to tax under this Article sold to a real property contractor for use by the real property contractor or to fulfill a real property contract.
… (13) The general rate of tax applies to the sales price of an item or service subject to tax under this Article sold to a real property contractor for use by the real Page 12 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 property contractor or to fulfill a real property contract.
…." Page 14 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 SECTION 2.4.(a) G.S.
…." SECTION 2.4.
105-164.4H(b1) and (e) are repealed.
G.S.
SECTION 2.4.(b) G.S.
105-164.4H reads as rewritten:
105-164.4H, as amended by subsection (a) of this section, reads as rewritten:
(a) Applicability.
… (a1) Substantiation.
– A real property contractor is the consumer of the tangible personal property, digital property, or service property or digital property that the real property contractor purchases, installs, or applies for others to fulfill a real property contract and that becomes part of real property or used to fulfill the contract.
A retailer engaged in business in the State shall collect tax on the sales price of the tangible personal property, digital property, or service sold at retail to a real property contractor unless a statutory exemption in G.S.
105-164.13 or G.S.
105-164.13E applies.
Where a real property contractor purchases tangible personal property or digital property for storage, use, or consumption in this State, or a service sourced to this State, and the tax due is not paid at the time of purchase, the provisions of G.S.
105-164.6 apply except as provided in subsection (b) of this section.
(a1) Substantiation.
A person may substantiate that a transaction is a real property contract or a mixed transaction by records that establish the transaction is a real property contract or by receipt of an affidavit of capital improvement or a mixed transaction.
A person may substantiate that a contract is a real property contract by records that establish the transaction is a real property contract or by receipt of an affidavit of capital improvement.
The receipt of an affidavit of capital improvement, absent fraud or other egregious activities, establishes that the subcontractor or other person receiving the affidavit should treat the transaction as a capital improvement, and the transaction is subject to tax in accordance with subsection (a) of this section.
The receipt of an affidavit of capital improvement from another person accepted in good faith establishes that the subcontractor or other person receiving the affidavit should treat the transaction as a capital improvement, and the transaction is subject to tax in accordance with subsection (a) of this section.
A person that issues an affidavit of capital improvement is liable for any additional tax due on the transaction, in excess of tax paid on related purchases under subsection (a) of this section, if it is determined that the transaction is not a capital improvement but rather the transaction is subject to tax as a retail sale.
A person that issues an affidavit of capital improvement is liable for any tax on the transaction if it is determined that the transaction is not a capital improvement.
A person who receives an affidavit of capital improvement from another person, absent fraud or other egregious activities, is not liable for any additional tax on the gross receipts from the transaction if it is determined that the transaction is not a capital improvement.
The Secretary shall determine when a person must issue an affidavit of capital improvement.
(b) Retailer-Contractor.
… (b1) Joint and Several Liability.
– This section applies to a retailer-contractor as follows:
– If a retailer-contractor subcontracts any part of the real property contract, tax is payable by the subcontractor on the subcontractor's purchase of the tangible personal property or digital property that is installed or applied to real property or a service used to fulfill the contract.
(1) Acting as a real property contractor.
The retailer-contractor, the subcontractor, the owner of the real property, and the lessee of the real property, are jointly and severally liable for the tax.
– A retailer-contractor acts as a real property contractor when it contracts to perform a real property contract.
The liability of a retailer-contractor, a subcontractor, an owner, or lessee who did not purchase the property or service is satisfied by receipt of an affidavit from the purchaser certifying that the tax has been paid.
A retailer-contractor that purchases tangible personal property or digital property to be installed or applied to real property or a service to fulfill the contract may purchase those items exempt from tax under a certificate of exemption pursuant to G.S.
A person who receives an affidavit of capital improvement accepted in good faith is not liable for any tax on the gross receipts from the transaction if it is determined that the transaction is not a capital improvement.
105-164.28 provided the retailer-contractor also purchases inventory items or services from the seller for resale.
… (d) Mixed Transaction Contract.
When the property is withdrawn from inventory and installed or applied to real property, or when the service is deemed used, use tax must be accrued and paid on the retailer-contractor's purchase price of the property.
– A contract that includes both a real property contract for a capital improvement and repair, maintenance, and installation services is taxable as follows:
Property that the retailer-contractor withdraws from inventory for use that does not become part of real property is also subject to the tax imposed by this Article.
(1) If the price of the taxable repair, maintenance, and installation services included in the contract does not exceed ten percent (10%) twenty-five Senate Bill 628-First Edition Page 13 General Assembly Of North Carolina Session 2017 percent (25%) of the contract price, then the repair, maintenance, and installation services portion of the contract, and the tangible personal property, digital property, or service used to perform that service, are taxable as a real property contract in accordance with this section.
(2) Acting as a retailer.
(2) If the price of the taxable repair, maintenance, and installation services included in the contract is equal to or greater than ten percent (10%) seventy-five percent (75%) of the contract price, then sales and use tax applies to the taxable repair, maintenance, and installation services portion of the contract.
– A retailer-contractor is acting as a retailer when it makes a sale at retail.
The person must determine an allocated price for each taxable repair, maintenance, and installation service in the contract based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business.
Senate Bill 628-Second Edition Page 15 General Assembly Of North Carolina Session 2017 … (d) Mixed Transaction Contract.
Any purchase of tangible personal property, digital property, or services to fulfill the real property contract are taxed in accordance with this section.the gross receipts derived from capital improvement portion of the contract are taxable as repair, maintenance, and installation services in accordance with this Article.
– A mixed transaction contract that includes both a real property contract for a capital improvement and repair, maintenance, and installation services is taxable as follows:
(e) Definitions.
(1) If the sales price of the taxable repair, maintenance, and installation services included in the contract does not exceed ten percent (10%) is less than or equal to twenty-five percent (25%) of the contract price, then the repair, maintenance, and installation services portion of the contract, and the tangible personal property, digital property, or service used to perform that service, those services, are taxable as a real property contract in accordance with this section.
– The following definitions apply in this Article:
(2) If the sales price of the taxable repair, maintenance, and installation services included in the contract is equal to or greater than ten percent (10%) twenty-five percent (25%) of the contract price, then sales and use tax applies to the sales price of or the gross receipts derived from the taxable repair, maintenance, and installation services portion of the contract.
(1) Capital improvement.
The person must determine an allocated price for each the taxable repair, maintenance, and installation service services in the contract based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business.
– An addition or alteration to real property that is new construction, reconstruction, or remodeling of a building, structure, or fixture on land that becomes part of the real property or is permanently installed or applied to the real property so that removal would cause material damage to the property or article itself.
Any purchase of tangible personal property, digital property, or services property or digital property to fulfill the real property contract are is taxed in accordance with this section." SECTION 2.4.(c) G.S.
The term includes an addition or an alteration to real property for or by a lessee or tenant, provided it is intended to become a permanent installation and title to it vests in the owner or lessor of the real property immediately upon installation.
105-164.6(b) reads as rewritten:
The term does not include the replacement of a fixture in or on a building or structure unless the replacement is part of a remodeling.
"(b) Liability.
The term does not include a single repair, maintenance, or installation service.
– The tax imposed by this section is payable by the person who purchases, leases, or rents tangible personal property or digital property or who purchases a service.
The term includes, but is not limited to, all of the following:An addition or alteration to real property that is permanently affixed or installed to real property and includes the following:
If the property purchased becomes a part of a building or other structure real property in the State and the purchaser is a contractor or subcontractor, State, the real property contractor, the retailer-contractor, the subcontractor, the lessee, and the owner of the building are jointly and severally liable for the tax.
a.
tax, except as provided in G.S.
New construction, reconstruction, or remodeling.Removal of items from real property, such as debris, construction materials, asbestos, or excavation activities, including the removal of items from a structure such as a dumpster.
105-164.4H(a) regarding receipt of an affidavit of capital improvement.
b.
The liability of a real property contractor, a retailer-contractor, a subcontractor, a lessee, or an owner who did not purchase the property is satisfied by receipt of an affidavit from the purchaser certifying that the tax has been paid." SECTION 2.4.(d) G.S.
Performance of work that requires the issuance of a permit under the State Building Code, other than repair or replacement of electrical components, gas logs, water heater, and similar individual items that are not part of new construction, reconstruction, or remodeling.
105-164.15A(a)(2) reads as rewritten:
c.b.
"(a) General Rate Items.
Installation of underground utilities, notwithstanding that charges for such are included in the gross receipts derived from services subject to the combined general rate under G.S.
– The effective date of a tax change for tangible personal property, digital property, or services taxable under this Article is administered as follows:
105-164.4.
… (2) For a taxable item that is not billed on a monthly or other periodic basis, a tax change applies to amounts received for items provided on or after the effective date, except amounts received for items provided under a lump-sum or unit-price contract purchased to fulfill a real property contract for a capital improvement entered into or awarded before the effective date or entered into or awarded pursuant to a bid made before the effective date." SECTION 2.4.(e) G.S.
d.c.
105-468.1 reads as rewritten:
Installation of equipment or fixture that is attached to real property so that removal of the item would cause physical, functional, or economic damage to the property and that is capitalized under one or more of the following:
"§ 105-468.1.
the Code, Generally Accepted Accounting Principles, or International Financial Reporting Standards.
Certain building materials exempt from sales and use taxes.
e.d.
The provisions of this Article shall not be applicable with respect to any building materials tangible personal property or digital property purchased for the purpose of fulfilling any lump sum or unit price contract a real property contract for a capital improvement entered into or awarded, or entered into or awarded pursuant to any bid made, before the effective date of the tax imposed by a taxing county when, absent the provisions of this section, such building materials property would otherwise be subject to tax under the provisions of this Article." SECTION 2.5.(a) G.S.
Painting or wallpapering.wallpapering of real property, except where painting or wallpapering is provided in connection with a repair, maintenance, or installation service and is incidental to the repair, maintenance, and installation service.
105-164.4I(b) is repealed.
Page 14 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 f.e.
Page 16 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 SECTION 2.5.(b) G.S.
Replacement or installation of a septic tank unit or a siding, roofing, septic tank, septage, plumbing, electrical, commercial refrigeration, irrigation, sprinkler, or other similar system.
105-164.4I(c) reads as rewritten:
The term does not include the repair, replacement, or installation of electrical or plumbing components, water heaters, gutters, and similar individual items that are not part of new construction, reconstruction, or remodeling.
"(c) Exceptions.
g.f.
– The tax imposed by this section does not apply to a any of the following:
Replacement or installation of a heating, ventilation, and air conditioning unit or system.
(1) A security or similar monitoring contract for real property.
The term does not include the repair, replacement, or installation of gas logs, water heaters, pool heaters, and similar individual items that are not part of new construction, reconstruction, or remodeling.
(2) A contract to provide a certified operator for a wastewater system." SECTION 2.6.
h.g.
Replacement or installation of roads, driveways, parking lots, patios, and sidewalks.
h.
Services performed to resolve an issue that was part of a real property contract if the services are performed within six months of completion of the real property contract or, for new construction, within 12 months of the new structure being occupied for the first time.
i.
Landscaping service.
(2) New construction.
– Construction of or site preparation for a permanent new building, structure, or fixture on land or an increase in the square footage of an existing building, structure, or fixture on land.
(3) Reconstruction.
– Rebuild or construct again a prior existing permanent building, structure, or fixture on land and may include a change in the square footage from the prior existing building, structure, or fixture on land.
(4) Remodeling.
– The process of improving or updating a permanent building, structure, or fixture on land or major portions thereof.
The term includes renovation.A transaction comprised of multiple services to restore, improve, alter, or update real property that may be subject to tax as repair, maintenance, and installation services if separately performed.
The term includes a transaction where the internal structure of a single room is substantially changed and tangible personal property or digital property is installed or applied and becomes part of real property.
The term does not include a single repair, maintenance, and installation service such as installation of carpet, flooring, floor coverings, windows, doors, cabinets, countertops, and other installations where the item being installed may replace a similar existing item.
(5) Renovation.
– Remodeling." SECTION 2.5.
105-164.4I reads as rewritten:
"§ 105-164.4I.
Service contracts.
… (b) Exemptions.
– The tax imposed by this section does not apply to the sales price of or the gross receipts derived from a service contract applicable to any of the following items:
(1) An item exempt from tax under this Article.
This exemption does not apply to water maintained under a service contract for a pool, fish tank, or similar aquatic feature.
(2) A transmission, distribution, or other network asset contained on utility-owned land, right-of-way, or easement.
(3) A transmission, an engine, rear-end gears, and any other item purchased, leased, or rented by a professional motorsports racing team or a related Senate Bill 628-First Edition Page 15 General Assembly Of North Carolina Session 2017 member of a team for which the team or related member may receive a sales tax exemption under G.S.
105-164.13(65) or G.S.
105-164.13(65a) or a sales tax refund under G.S.
105-164.14A(a)(5).
This subdivision expires January 1, 2020.
(4) An item subject to tax under Article 5F of Chapter 105 of the General Statutes.
(5) A qualified aircraft or a qualified jet engine.
(6) A motor vehicle service contract.
(7) Repair, maintenance, and installation services exempt under G.S.
105-164.13(61a).
(c) Exceptions.
– The tax imposed by this section does not apply to any of the following:
(1) a A security or similar monitoring contract for real property.
(2) A contract to provide a certified operator for a wastewater system.
(3) A contract to provide landscaping, pest control, or moving services.
…." SECTION 2.6.
G.S.
Sales The sales price of or the gross receipts derived from the following repair, maintenance, and installation services and service contracts listed in this subdivision are exempt from tax:tax.
Sales of or the gross receipts derived from the following repair, maintenance, and installation services and service contracts listed in this subdivision are exempt from tax:tax.
For purposes of this exemption, property and services used to fulfill either a repair, maintenance, or installation service or a service contract exempt from tax under this subdivision are taxable, other than property and services used to fulfill a service or contract exempt under sub-subdivision a.
The exemption does not include any tangible personal property transferred to the purchaser no matter that the tangible personal property is transferred as part of the repair, maintenance, and installation service.
of this subdivision.
b.
a.b.
d.
d.d.
Cleaning of real property, except where the service constitutes a part of the gross receipts derived from the rental of an accommodation subject to tax under G.S.
Cleaning of real property, except where the service constitutes a part of the gross receipts derived from the rental of an accommodation Page 16 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 subject to tax under G.S.
Examples of cleaning of real property include custodial services, window washing, mold remediation services, carpet cleaning, removal of debris from gutters, removal of dust and other pollutants from ductwork, and power washing other than for a pool.
f.
f.e.
Removal of waste, trash, debris, grease, snow, and other similar items from tangible personal property, including a motor vehicle, and Senate Bill 628-Second Edition Page 17 General Assembly Of North Carolina Session 2017 real property, other than a motor vehicle.
Removal of waste, trash, debris, grease, snow, and other similar items from tangible personal property, including a motor vehicle, and real property, but does not include removal of waste from portable toilets.toilets or oil from motor vehicles.
The exemption applies to household and commercial trash collection and removal services.
g.f.
The exemption applies to the removal of septage from property, including motor vehicles, but does not include removal of waste septage from portable toilets.
Home inspections The following inspection reports prepared by a person that is not a retailer of the repair, maintenance, and installation services performed as a result of the report:
g.
Home inspections The following inspection reports, including services required to prepare the reports:
A home inspection related to the preparation for or the sale of real property.
A home inspection related to the preparation for or the sale of real property.property and performed by a home inspector licensed under Article 9F of Chapter 143 of the General Statutes.
i.h.
i.g.
j.i.
j.h.
k.j.
k.i.
l.k.
lj.
l.
k.
m.
l.
m.
Installation charges for a manufactured home or a modular home provided the installation charges are separately stated and identified as such on the invoice or other documentation given to the purchaser at the time of the sale, regardless of whether the home is being installed on property that is owned by the owner of the home.
The exemption includes any labor costs provided by the real property contractor, including employees' wages, or labor purchased from a third party that would otherwise be included in the definition of "purchase price." … (62) An item or repair, maintenance, and installation services purchased or used to maintain, monitor, inspect, or repair tangible personal property or digital property pursuant to fulfill a service contract taxable under this Article if the purchaser of the contract is not charged for the item or services.
The exemption includes any labor costs provided by the real property contractor, including employees' wages, or labor purchased from a third party that would otherwise be included in the definition of "purchase price." … (62) An item or repair, maintenance, and installation services used to maintain, monitor, inspect, or repair tangible personal property property, real property, or digital property pursuant to a service contract taxable under this Article if the purchaser of the contract is not charged for the item or services.
For purposes of this exemption, the term "item" does not include a tool, equipment, supply, or similar tangible personal property that is not deemed to be a component or repair part of the tangible personal property property, real property, or digital property for which a service contract is sold to a purchaser.
This exemption does not apply to an item or service used to fulfill a service contract exempt from tax under this Article.
… (65) The sale, lease, or rental of an engine This subdivision expires January 1, 2020.
For purposes of this exemption, Senate Bill 628-First Edition Page 17 General Assembly Of North Carolina Session 2017 the term "item" does not include a tool, equipment, supply, or similar tangible personal property that is not deemed to be a component or repair part of the tangible personal property property, real property, or digital property for which a service contract is sold to a purchaser.
Sales of the following to a professional motorsports racing team or a related member of a team for use in competition in a sanctioned race series.
… (65) This subdivision expires January 1, 2020.
Sales of the following The sale, lease, or rental of an engine to a professional motorsports racing team or a related member of a team for use in competition in a sanctioned race series.
Page 18 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 b.
b.
The sales price of or gross receipts derived from a service contract on, or repair, maintenance, and installation services for, a transmission, an engine, rear-end gears, and any other item that is purchased, leased, or rented and that is exempt from tax under this subdivision or that is allowed a sales tax refund under G.S.
The sales price of or gross receipts derived from a service contract on, or repair, maintenance, and installation services for, a transmission, an engine, rear-end gears, and any other item that is exempt from tax under this subdivision or that is allowed a sales tax refund under G.S.
– An interstate carrier is allowed a refund, in accordance with this section, of part of the sales and use taxes paid by it on the purchase in this State of railway cars and locomotives, and fuel, lubricants, repair parts, and accessories accessories, service contracts other than motor vehicle service contracts, and repair, maintenance, and installation services for a motor vehicle, railroad car, locomotive, or airplane the carrier operates.
– An interstate carrier is allowed a refund, in accordance with this section, of part of the sales and use taxes paid by it on the purchase in this State of railway cars and locomotives, and fuel, lubricants, repair parts, and accessories accessories, and repair, maintenance, and installation services for a motor vehicle, railroad car, locomotive, or airplane the carrier operates.
(1) A list identifying the railway cars, locomotives, fuel, lubricants, repair parts, and accessories accessories, service contracts other than motor vehicle service contracts, and repair, maintenance, and installation services purchased by the applicant inside or outside this State during the refund period.
(1) A list identifying the railway cars, locomotives, fuel, lubricants, repair parts, and accessories accessories, and repair, maintenance, and installation services purchased by the applicant inside or outside this State during the refund period.
.…" SECTION 2.7.(b) This section becomes effective retroactively to March 1, 2016.
.…" SECTION 2.7.(b) This section is effective retroactively to January 1, 2017.
SECTION 2.8.(a) If the Secretary of Revenue determines that a seller paid sales and use taxes on a product and the seller uses the product as part of a taxable repair, maintenance, and installation service to real property, the Secretary may allow the seller to offset the sales tax liability on the taxable repair, maintenance, and installation service with the sales and use tax paid on the products provided the retailer can support the amount of tax originally paid.
SECTION 2.8.(a) If the Secretary of Revenue determines that a seller paid sales and use taxes on a product and the seller used the product purchased for a taxable repair, maintenance, and installation service to real property, the Secretary may allow the seller to offset the sales tax liability on the taxable repair, maintenance, and installation service with the sales and use tax paid on the products.
A retailer entitled to a credit for tax originally paid under this provision may reduce taxable receipts by the taxable amount of the credit for the period in which the credit occurs.
SECTION 2.8.(b) This section is effective retroactively to January 1, 2017, and expires on July 1, 2018.
SECTION 2.8.(b) The Revenue Laws Study Committee is directed to study the feasibility of providing a seller of taxable repair, maintenance, and installation services to real property the option of paying sales tax on the property used to fulfill the repair, maintenance, and installation service at the time the property is purchased and offsetting the sales tax liability on the taxable repair, maintenance, and installation service with the sales and use tax paid on the products.
PART III.
Subsection (a) of this section provides sellers this option until July 1, 2018.
TAX COLLECTION AND ENFORCEMENT Page 18 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 SECTION 3.1.(a) G.S.
The Revenue Laws Study Committee must recommend to the 2018 Regular Session of the 2017 General Assembly whether this option should be allowed on a permanent basis.
105-236(a) reads as rewritten:
Senate Bill 628-Second Edition Page 19 General Assembly Of North Carolina Session 2017 SECTION 2.8.(c) Subsection (a) of this section becomes effective retroactively to January 1, 2017, and expires on July 1, 2018.
The remainder of this section is effective when it becomes law.
SECTION 2.9.(a) G.S.
105-164.13 reads as rewritten:
"§ 105-164.13.
Retail sales and use tax.
The sale at retail and the use, storage, or consumption in this State of the following tangible personal property, digital property, and services are specifically exempted from the tax imposed by this Article:
… (43) Custom computer software.
Custom computer software and the portion of prewritten computer software that is modified or enhanced if the modification or enhancement is designed and developed to the specifications of a specific purchaser and the charges for the modification or enhancement are separately stated.stated on the invoice or similar billing document given to the purchaser at the time of the sale.
… (57a) Fuel, piped natural gas, and electricity sold to a secondary metals recycler person subject to tax on certain tangible personal property pursuant to G.S.
105-187.51B(a)(6) for use in recycling at its facility at which the primary activity is recycling.
…." SECTION 2.9.(b) G.S.
105-164.14(b) reads as rewritten:
"(b) Nonprofit Entities and Hospital Drugs.
– A nonprofit entity is allowed a semiannual refund of sales and use taxes paid by it under this Article on direct purchases of tangible personal property and services for use in carrying on the work of the nonprofit entity.
Sales and use tax liability indirectly incurred by a nonprofit entity through reimbursement to an authorized person of the entity for the purchase of tangible personal property and services for use in carrying on the work of the nonprofit entity is considered a direct purchase by the entity.
Sales and use tax liability indirectly incurred by a nonprofit entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure that is owned or leased by the nonprofit entity and is being erected, altered, or repaired for use by the nonprofit entity for carrying on its nonprofit activities is considered a sales or use tax liability incurred on direct purchases by the nonprofit entity.
The refund allowed under this subsection does not apply to purchases of electricity, telecommunications service, ancillary service, piped natural gas, video programming, or a prepaid meal plan.
A request for a refund must be in writing and must include any information and documentation required by the Secretary.
A request for a refund for the first six months of a calendar year is due the following October 15;
a request for a refund for the second six months of a calendar year is due the following April 15.
The aggregate annual refund amount allowed an entity under this subsection for a the State's fiscal year may not exceed thirty-one million seven hundred thousand dollars ($31,700,000).
The refunds allowed under this subsection do not apply to an entity that is owned and controlled by the United States or to an entity that is owned or controlled by the State and is not listed in this subsection.
A hospital that is not listed in this subsection is allowed a semiannual refund of sales and use taxes paid by it on over-the-counter drugs purchased for use in carrying out its work.
The following nonprofit entities are allowed a refund under this subsection:
.…" SECTION 2.9.(c) G.S.
105-467 reads as rewritten:
"§ 105-467.
Scope of sales tax.
… Page 20 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 (b) Exemptions and Refunds.
– The State exemptions and exclusions contained in G.S.
105-164.13 and G.S.
105-164.27A Article 5 of Subchapter I of this Chapter, except for the exemption for food in G.S.
105-164.13B, apply to the local sales and use tax authorized to be levied and imposed under this Article.
The State refund provisions contained in G.S.
105-164.14 through G.S.
105-164.14B and G.S.
105-164.14A apply to the local sales and use tax authorized to be levied and imposed under this Article.
A refund of an excessive or erroneous State sales tax collection allowed under G.S.
105-164.11 and a refund of State sales tax paid on a rescinded sale or cancelled service contract under G.S.
105-164.11A apply to the local sales and use tax authorized to be levied and imposed under this Article.
The aggregate annual local refund amount allowed an entity under G.S.
105-164.14(b) for a the State's fiscal year may not exceed thirteen million three hundred thousand dollars ($13,300,000).
Except as provided in this subsection, a taxing county may not allow an exemption, exclusion, or refund that is not allowed under the State sales and use tax.
A local school administrative unit and a joint agency created by interlocal agreement among local school administrative units pursuant to G.S.
160A-462 to jointly purchase food service-related materials, supplies, and equipment on their behalf is allowed an annual refund of sales and use taxes paid by it under this Article on direct purchases of tangible personal property and services.
Sales and use tax liability indirectly incurred by the entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure as part of a real property contract for real property that is owned or leased by the entity and is being erected, altered, or repaired a capital improvement for use by the entity is considered a sales or use tax liability incurred on direct purchases by the entity for the purpose of this subsection.
The refund allowed under this subsection does not apply to purchases of electricity, telecommunications service, ancillary service, piped natural gas, video programming, or a prepaid meal plan.
A request for a refund is due in the same time and manner as provided in G.S.
105-164.14(c).
Refunds applied for more than three years after the due date are barred.
(c) Sourcing.
– The sourcing principles in G.S.
105-164.4B Article 5 of Subchapter I of this Chapter apply in determining whether the local sales tax applies to a transaction." SECTION 2.9.(d) G.S.
105-468 reads as rewritten:
"§ 105-468.
Scope of use tax.
The use tax authorized by this Article is a tax at the rate of one percent (1%) of the purchase price of each an item or article of tangible personal property transaction that is not sold in the taxing county but is used, consumed, or stored for use storage, use, or consumption in the taxing county.
county and sourced in accordance with Article 5 of Subchapter I of this Chapter.
The tax applies to the same items that are subject to tax under G.S.
105-467.
The collection and administration of this tax shall be in accordance with Article 5 of Chapter 105 of the General Statutes.Subchapter I of this Chapter.
Where a local sales or use tax was due and has been paid with respect to tangible personal property on an item or transaction by the purchaser in another taxing county within the State, or where a local sales or use tax was due and has been paid in a taxing jurisdiction outside the State where the purpose of the tax is similar in purpose and intent to the tax which may be imposed pursuant to this Article, the tax paid may be credited against the tax imposed under this section by a taxing county upon the same property.
property or transaction.
If the amount of sales or use tax so paid is less than the amount of the use tax due the taxing county under this section, the purchaser shall pay to the Secretary an amount equal to the difference between the amount so paid in the other taxing county or jurisdiction and the amount due in the taxing county.
The Secretary may require such proof of payment in another taxing county or jurisdiction as is deemed to be necessary.
The use tax levied under this Article is not subject to credit for payment of any State sales or use tax not imposed for the benefit and use of counties and municipalities.
No credit shall be given under this section for sales or use taxes paid in a Senate Bill 628-Second Edition Page 21 General Assembly Of North Carolina Session 2017 taxing jurisdiction outside this State if that taxing jurisdiction does not grant similar credit for sales taxes paid under this Article." SECTION 2.9.(e) G.S.
105-471 reads as rewritten:
"§ 105-471.
Retailer to collect sales tax.
Every retailer whose place of business is in a taxing county shall on and after the levy of the tax herein authorized collect the one percent (1%) local sales tax provided by this Article.
A retailer is required to collect a local use tax on a transaction if a local sales tax does not apply to the transaction in accordance with G.S.
105-164.8(c).
The tax to be collected under this Article shall be collected as a part of the sales price of the item of tangible personal property sold, the purchase price of the item of tangible personal property used, or as a part of the charge for the rendering of any services, renting or leasing of tangible personal property, or the furnishing of any accommodation taxable hereunder.
of an item or transaction subject to tax in accordance with G.S.
105-467.
The tax shall be stated and charged separately from the sales price or purchase price and shall be shown separately on the retailer's sales record and shall be paid by the purchaser to the retailer as trustee for and on account of the State or county wherein the tax is imposed.
It is the intent and purpose of this Article that the local sales and use tax herein authorized to be imposed and levied by a taxing county shall be added to the sales price and that the tax shall be passed on to the purchaser instead of being borne by the retailer.
The Secretary of Revenue shall design, print and furnish to all retailers in a taxing county in which he shall collect and administer the tax the necessary forms for filing returns and instructions to insure the full collection from retailers, and the Secretary may adapt the present form used for the reporting and collecting of the State sales and use tax to this purpose." SECTION 2.9.(f) G.S.
105-474 reads as rewritten:
"§ 105-474.
Definitions;
construction of Article;
remedies and penalties.
The definitions set forth in G.S.
105-164.3 Article 5 of Subchapter I of this Chapter shall apply to this Article insofar as such definitions are not inconsistent with the provisions of this Article, and all other provisions of Article 5 and of Article 9 of Subchapter 1, Chapter 105 of the General Statutes, Articles 5 and 9 of Subchapter I of this Chapter as the same relate to the North Carolina Sales and Use Tax Act shall be applicable to this Article unless such provisions are inconsistent with the provisions of this Article.
The administrative interpretations made by the Secretary of Revenue with respect to the North Carolina Sales and Use Tax Act, to the extent not inconsistent with the provisions of this Article, may be uniformly applied in the construction and interpretation of this Article.
It is the intention of this Article that the provisions of this Article and the provisions of the North Carolina Sales and Use Tax Act, insofar as practicable, shall be harmonized.
The provisions with respect to remedies and penalties applicable to the North Carolina Sales and Use Tax Act, as contained in Article 5 and Article 9, Subchapter 1, Chapter 105 of the General Statutes, Articles 5 and 9 of Subchapter I of this Chapter, shall be applicable in like manner to the tax authorized to be levied and collected under this Article, to the extent that the same are not inconsistent with the provisions of this Article." SECTION 2.9.(g) G.S.
105-187.31 reads as rewritten:
"§ 105-187.31.
Tax imposed.
A privilege tax is imposed on a dry-cleaning solvent retailer at a flat rate for each gallon of dry-cleaning solvent sold by the retailer to a dry-cleaning facility.
An excise tax is imposed on dry-cleaning solvent purchased outside the State for storage, use, or consumption by a dry-cleaning facility in this State.
The rate of the privilege tax and the excise tax is ten dollars ($10.00) for each gallon of halogenated hydrocarbon-based dry-cleaning solvent and one dollar and thirty-five cents ($1.35) for each gallon of hydrocarbon-based dry-cleaning solvent.
These taxes are in addition to all other taxes." Page 22 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 SECTION 2.10.
Except as otherwise provided, Sections 2.1 through 2.8 of this part become effective retroactively to January 1, 2017, and apply to sales and purchases made on or after that date.
Any amendments made in Sections 2.1 through 2.8 of this part that increase sales or use tax liability are effective when this act becomes law.
The remainder of this part is effective when it becomes law.
7 PART III.
TAX COLLECTION AND ENFORCEMENT SECTION 3.1.(a) G.S.
105-236(a) is amended by adding a new subdivision to read:
… (7) Attempt to Evade or Defeat Tax.
– Any person who willfully attempts, or any person who aids or abets any person to attempt in any manner to evade or defeat a tax or its payment, shall, in addition to other penalties provided by law, be guilty of (i) a Class H felony.F felony if violation of this subdivision involves less than one hundred thousand dollars ($100,000) and (ii) a Class C felony for any other violation of this subdivision.
… (9) Willful Failure to File Return, Supply Information, or Pay Tax.
– Any person required to pay any tax, to file a return, to keep any records, or to supply any information, who willfully fails to pay the tax, file the return, keep the records, or supply the information, at the time or times required by law, or rules issued pursuant thereto, is, in addition to other penalties provided by law, guilty of a Class 1 misdemeanor.misdemeanor for the first offense and a Class H felony for any second or subsequent offense.
Notwithstanding any other provision of law, no prosecution for a violation brought under this subdivision is barred before the expiration of six years after the date of the violation.
– A person who knowingly obtains, possesses, or uses identifying information of another person, living or dead, with the intent to fraudulently utilize that information in a submission to the Department to obtain anything of value, benefit, or advantage for themselves or another is guilty of a Class G felony.
– A person who violates G.S.
If the person whose identifying information is obtained, possessed, or used by another in this manner suffers any adverse financial impact as a proximate result of the offense, then the person who obtained, possessed, or used the identifying information is guilty of a Class F felony.
14-113.20 is guilty as provided in G.S.
Each person's identity obtained, possessed, or used in this manner shall count as a separate offense.
14-113.22(a).
The term "identifying information" as used in this subdivision includes the following:
Each document filed with identifying information of another may be considered a separate offense.
In addition to the listing in G.S.
14-113.20, the term "identifying information" as used in this subdivision, includes the following:
Social Security Number.
d.
e.
d.
f.
…." SECTION 3.1.(b) G.S.
Bank account numbers.
105-235 reads as rewritten:
g.
"§ 105-235.
Federal or State tax or tax return information.
Every day's failure a separate offense.
…." SECTION 3.1.(b) This section becomes effective December 1, 2017, and applies to offenses committed on or after that date.
The willful failure, refusal, or neglect to observe and comply with any order, direction, or mandate of the Secretary of Revenue, or to perform any duty enjoined by this Subchapter, by any person, firm, or corporation subject to the provisions of this Subchapter, or any officer, agent, or employee thereof, shall,may, at the Secretary's discretion, for each day such failure, refusal, or neglect continues, constitute a separate and distinct offense." SECTION 3.2.
SECTION 3.2.
– For any year in which a payment settlement entity is required to make a return pursuant to section 6050W of the Code, the entity shall submit the information in the return to the Secretary at the time the return is made.
– For any year in which a payment settlement entity is required to make a return pursuant to Section 6050W of the Code, the entity shall submit the information in the return to the Secretary at the time the return is made.
For purposes of this subsection, the term "payment settlement entity" has the same meaning as provided in section 6050W of the Code.
For purposes of this subsection, the term "payment settlement entity" has the same meaning as provided in Section 6050W of the Code.
"(14) Voidable transaction.
Senate Bill 628-First Edition Page 19 General Assembly Of North Carolina Session 2017 "(14) Voidable transaction.
or Senate Bill 628-Second Edition Page 23 General Assembly Of North Carolina Session 2017 (2) Enforcement of a security interest in compliance with Article 9 of Chapter 25 of the General Statutes, the Uniform Commercial Code, other than acceptance of collateral in full or partial satisfaction of the obligation it secures.
or (2) Enforcement of a security interest in compliance with Article 9 of Chapter 25 of the General Statutes, the Uniform Commercial Code, other than acceptance of collateral in full or partial satisfaction of the obligation it secures.
(3) The payment of taxes, debts, fines, penalties, or other obligations or amounts to the State or to any political subdivision of the State." 8 PART IV.
(3) The payment of taxes, debts, fines, penalties, or other obligations or amounts to the State or to any political subdivision of the State." PART IV.
(2) For a request that is mailed, the date determined in accordance with G.S.
Page 20 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 (2) For a request that is mailed, the date determined in accordance with G.S.
assessment but is assessed on a subsequent date in another notice." Page 24 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 SECTION 4.1.(c) Article 9 of Chapter 105 of the General Statutes is amended by adding the following new section to read:
assessment but is assessed on a subsequent date in another notice." SECTION 4.1.(c) G.S.
"§ 105-241.13A.
105-241.12 reads as rewritten:
Taxpayer inaction.
"§ 105-241.12.
(a) Consequence of Inaction.
Result when taxpayer does not request a review.Taxpayer inaction.
– If a taxpayer makes no response to the Department's request for additional information under G.S.
(a) Refund.
105-241.13(a) by the requested response date, the proposed denial of a refund or the proposed assessment becomes final as provided in this section.
– If a taxpayer does not file a timely request for a Departmental review of a proposed denial of a refund, refund or fails to timely respond to the Department's request for additional information under G.S.
The Department must send the taxpayer a notice stating that the proposed denial of a refund or the proposed assessment becomes final 10 days from the date of the notice of inaction unless the taxpayer responds to the Department.
105-241.13(a), the proposed denial is final and is not subject to further administrative or judicial review.
A proposed denial of a refund or a proposed assessment that becomes final is not subject to further administrative or judicial review.
A taxpayer whose proposed denial becomes final may not file another amended return or claim for refund to obtain the denied refund.
A taxpayer may not file another amended return or claim for refund to obtain the denied refund.
(b) Assessment.
– If a taxpayer does not file a timely request for a Departmental review of a proposed assessment, assessment or fails to timely respond to the Department's request for additional information under G.S.
105-241.13(a), the proposed assessment is final and is not subject to further administrative or judicial review.
(b) Notice of Collection.
Before the Department collects a proposed assessment that becomes final when the taxpayer does not file a timely request for a Departmental review, under this subsection, the Department must send the taxpayer a notice of collection.
– Before the Department collects a proposed assessment that becomes final under this section, the Department must send the taxpayer a notice of collection containing the information required under G.S.
A notice of collection must contain the following information:
105-241.12." SECTION 4.1.(d) G.S.
(1) A statement that the proposed assessment is final and collectible.
(2) The amount of tax, interest, and penalties payable by the taxpayer.
(3) An explanation of the collection options available to the Department if the taxpayer does not pay the amount shown due on the notice and any remedies available to the taxpayer concerning these collection options." SECTION 4.1.(d) G.S.
(2) Schedule a conference with the taxpayer.Adjust the amount of tax due or refund owed.
(2) Schedule a conference with the taxpayer.
(3) Request additional information from the taxpayer concerning the requested refund or proposed assessment.
(3) Adjust the amount of tax due or refund owed.
If a taxpayer makes no response to the Department's request for additional information by the requested response date, the refund or assessment shall be subject to the provisions of G.S.
(4) Request additional information from the taxpayer concerning the requested refund or proposed assessment.
105-241.13A.
A taxpayer's failure to respond to the Department's request for additional information by the requested response date shall result in the refund or assessment being subject to the provisions of G.S.
105-241.12.
(b) Conference.
Senate Bill 628-First Edition Page 21 General Assembly Of North Carolina Session 2017 (b) Conference.
– When the Department and the taxpayer agree that an action taken under subsection (a) or (a1) of this section resolves the taxpayer's objection to the Department's proposed denial of a refund or a proposed assessment, the Department does not need to take further action on the request for review.
– When the Department reviews a proposed denial of a refund or a proposed assessment and does not grant the refund or remove the assessment, actions under subsection (a) or (a1) of this section do not resolve the Departmental review, the Department must schedule a conference with the taxpayer.
When the Department reviews a proposed denial of a refund or a proposed assessment and does not grant the refund or remove the assessment, an action taken under subsection (a) or (a1) of this section do not resolve the taxpayer's objection to the Department's proposed denial of a refund or a proposed assessment, the Department must schedule a conference with the taxpayer.
The taxpayer may present any objections to the proposed denial of refund or proposed assessment at the Senate Bill 628-Second Edition Page 25 General Assembly Of North Carolina Session 2017 conference.conference and is not limited by the explanation set forth in the taxpayer's request for review.
The taxpayer may present any objections to the proposed denial of refund or proposed assessment at the conference.conference and is not limited by the explanation set forth in the taxpayer's request for review.
… (2) When the Department sends a notice of collection after a taxpayer does not file a timely request for a Departmental review of a proposed assessment of tax.tax or based upon taxpayer inaction in accordance with G.S.
… (2) When the Department sends a notice of collection after a taxpayer does not file a timely request for a Departmental review of a proposed assessment of tax.based upon taxpayer inaction in accordance with G.S.
105-241.13A.
105-241.12.
… (2) Had a license issued under this Article cancelled revoked by the Secretary for cause.Secretary.
Page 22 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 … (2) Had a license issued under this Article cancelled revoked by the Secretary for cause.Secretary.
– Upon application to the Secretary, a license holder licensee may obtain without charge a duplicate or amended license as provided in this Page 26 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 subsection.
– Upon application to the Secretary, a license holder licensee may obtain without charge a duplicate or amended license as provided in this subsection.
(6) Refuses to allow the Secretary or a representative of the Secretary to examine the person's books, accounts, and records concerning tobacco product.
Senate Bill 628-First Edition Page 23 General Assembly Of North Carolina Session 2017 (6) Refuses to allow the Secretary or a representative of the Secretary to examine the person's books, accounts, and records concerning tobacco product.
The Secretary must give a person whose license may be cancelled revoked after a hearing at least 10 days' written notice of the date, time, and place of the Senate Bill 628-Second Edition Page 27 General Assembly Of North Carolina Session 2017 hearing.
The Secretary must give a person whose license may be cancelled revoked after a hearing at least 10 days' written notice of the date, time, and place of the hearing.
– The number of qualified motor vehicles of a motor carrier that is registered licensed under this Article is the number of sets of decals issued to the carrier.
– The number of qualified motor vehicles of a motor carrier that is registeredlicensed under this Article is the number of sets of decals issued to the carrier.
The number of qualified motor vehicles of a carrier that is not registered licensed under this Article is the number of qualified motor vehicles licensed or registered by the motor carrier in the carrier's base state under the International Registration Plan." SECTION 4.4.(b) G.S.
The number of qualified motor vehicles of a carrier that is not registeredlicensed under this Article is the number of qualified motor vehicles licensed or registered by the motor carrier in the carrier's base state under the International Registration Plan." SECTION 4.4.(b) G.S.
The Secretary may revoke a registration license or a decal when a motor carrier fails to comply with this Article or Article 36C or 36D of this Subchapter.
The Secretary may revoke a Page 24 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 registration license or a decal when a motor carrier fails to comply with this Article or Article 36C or 36D of this Subchapter.
Page 28 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 "§ 105-449.47A.
"§ 105-449.47A.
Any A person who operates or causes to be operated on a highway in this State a qualified motor vehicle that does not carry a registration card license as required by this Article, does not properly display a decal as required by this Article, or is not registered licensed in accordance with this Article commits a Class 3 misdemeanor and is punishable by a fine of two hundred dollars ($200.00).
Any A person who operates or causes to be operated on a highway in this State a qualified motor vehicle that does not carry a registration cardlicense as required by this Article, does not properly display a decal as required by this Article, or is not registered licensed in accordance with this Article commits a Class 3 misdemeanor and is punishable by a fine of two hundred dollars ($200.00).
(1) Operates in this State or causes to be operated in this State a qualified motor vehicle that either fails to carry the registration card license required by this Article or fails to display a decal in accordance with this Article.
(1) Operates in this State or causes to be operated in this State a qualified motor vehicle that either fails to carry the registration cardlicense required by this Senate Bill 628-First Edition Page 25 General Assembly Of North Carolina Session 2017 Article or fails to display a decal in accordance with this Article.
Senate Bill 628-Second Edition Page 29 General Assembly Of North Carolina Session 2017 (a1) Payment.
(a1) Payment.
When a qualified motor vehicle is found to be operating without a registration card license or a decal or with a decal the Secretary did not issue for the vehicle, the qualified motor vehicle may not be driven for a purpose other than to park it until the penalty imposed under this section is paid unless the officer that imposes the penalty determines that operating it will not jeopardize collection of the penalty.
When a qualified motor vehicle is found to be operating without a registration cardlicense or a decal or with a decal the Secretary did not issue for the vehicle, the qualified motor vehicle may not be driven for a purpose other than to park it until the penalty imposed under this section is paid unless the officer that imposes the penalty determines that operating it will not jeopardize collection of the penalty.
(b) Penalty.Penalty Reduction.
(b) Penalty.
Penalty Reduction.
(1) Had a license or registration issued under this Article or former Article 36 or 36A of this Chapter cancelled revoked by the Secretary for cause.Secretary.
Page 26 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 (1) Had a license or registration issued under this Article or former Article 36 or 36A of this Chapter cancelled revoked by the Secretary for cause.Secretary.
A license holder licensee must maintain and display a copy of the license issued under this Part in a conspicuous place at each place of business of the license Page 30 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 holder.
A license holder licensee must maintain and display a copy of the license issued under this Part in a conspicuous place at each place of business of the license holder.
(2) Return a bond to the license holder licensee or notify the person liable on the bond and the license holder licensee that the person is released from liability on the bond." SECTION 4.5.(g) G.S.
Senate Bill 628-First Edition Page 27 General Assembly Of North Carolina Session 2017 (2) Return a bond to the license holder licensee or notify the person liable on the bond and the license holder licensee that the person is released from liability on the bond." SECTION 4.5.(g) G.S.
Senate Bill 628-Second Edition Page 31 General Assembly Of North Carolina Session 2017 (a) Notice to Suppliers.
(a) Notice to Suppliers.
"(a) Decision.
Page 28 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 "(a) Decision.
The notice must advise the applicant that the applicant may request a hearing on the matter in accordance with Article 9 of this Chapter.proposed denial of the request for a refund.
The notice must advise the applicant that the applicant may request a hearing on the matter in accordance with Article 9 of this Chapter.
proposed denial of the request for a refund.
The procedure in Article 36C for Page 32 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 cancelling revoking a license applies to the cancellation revocation of a license under this Article." SECTION 4.6.(b) G.S.
The procedure in Article 36C for cancelling revoking a license applies to the cancellation revocation of a license under this Article." SECTION 4.6.(b) G.S.
The Secretary may cancel revoke the license of a license holder licensee who files a false report under this Article or fails to file a report required under this Article after holding a hearing on whether the license should be cancelled.revoked.
The Senate Bill 628-First Edition Page 29 General Assembly Of North Carolina Session 2017 Secretary may cancel revoke the license of a license holder licensee who files a false report under this Article or fails to file a report required under this Article after holding a hearing on whether the license should be cancelled.revoked.
– When the Secretary cancels or revokes a license and the license holder licensee has paid all taxes and penalties due under this Article, the Secretary must either return to the license holder licensee the bond filed by the license holder licensee or notify the Senate Bill 628-Second Edition Page 33 General Assembly Of North Carolina Session 2017 person liable on the bond and the license holder licensee that the person is released from liability on the bond." SECTION 4.7.
– When the Secretary cancels or revokes a license and the license holder licensee has paid all taxes and penalties due under this Article, the Secretary must either return to the license holder licensee the bond filed by the license holder licensee or notify the person liable on the bond and the license holder licensee that the person is released from liability on the bond." SECTION 4.7.
Section 4.1(e) of this part becomes effective retroactively to January 1, 2012, and applies to contested cases commenced on or after that date.
This Part is effective when it becomes law and applies to requests for review filed on or after that date and to requests for review pending on that date for which the Department reissues a request for additional information, allows the taxpayer time to respond by the requested response date, and provides notification to the taxpayer that failure to timely respond to the request will result in the request for review being subject to the provisions of G.S.
The remainder of this part is effective when it becomes law and applies to requests for review filed on or after that date and to requests for review pending on that date for which the Department reissues a request for additional information, allows the taxpayer time to respond by the requested response date, and provides notification to the taxpayer that failure to timely respond to the request will result in the request for review being subject to the provisions of G.S.
105-241.12.
105-241.13A.
e.
Page 30 Senate Bill 628-First Edition General Assembly Of North Carolina Session 2017 e.
Page 34 Senate Bill 628-Second Edition General Assembly Of North Carolina Session 2017 SECTION 5.2.
SECTION 5.2.
SEVERABILITY AND EFFECTIVE DATE SECTION 6.1.
SEVERABILITY AND EFFECTIVE DATE Senate Bill 628-First Edition Page 31 General Assembly Of North Carolina Session 2017 SECTION 6.1.
Senate Bill 628-Second Edition Page 35
Page 32 Senate Bill 628-First Edition
⬇ Download PDF
View plain text versions (10)

Action History

  1. Signed by Gov. 8/11/2017

  2. Ch. SL 2017-204

  3. Pres. To Gov. 8/4/2017

  4. Conferees Changed

  5. Conf Com Reported

  6. Placed on Today's Calendar

  7. Conf Com Reported

  8. Added to Calendar

  9. Conf Report Adopted

  10. Conf Report Adopted

  11. Ordered Enrolled

  12. Ratified

  13. Amend Adopted A1

  14. Passed 3rd Reading

  15. Ordered Engrossed

  16. Special Message Sent To Senate

  17. Special Message Received For Concurrence in H Com Sub

  18. Placed on Today's Calendar

  19. Failed Concur In H Com Sub

  20. Conf Com Appointed

  21. Conf Com Appointed

  22. Withdrawn From Cal

  23. Placed On Cal For 06/28/2017

  24. Passed 2nd Reading

  25. Reptd Fav Com Substitute

  26. Cal Pursuant Rule 36(b)

  27. Placed On Cal For 06/26/2017

  28. Passed 1st Reading

  29. Ref To Com On Finance

  30. Regular Message Sent To House

  31. Regular Message Received From Senate

  32. Passed 3rd Reading

  33. Engrossed

  34. Amendment Withdrawn A2

  35. Amend Adopted A1

  36. Passed 2nd Reading

  37. Amendment Offered 1

  38. Amendment Offered Substitute 2

  39. Withdrawn From Cal

  40. Placed On Cal For 06/12/2017

  41. Reptd Fav

  42. Reptd Fav Com Substitute

  43. Com Substitute Adopted

  44. Re-ref Com On Rules and Operations of the Senate

  45. Withdrawn From Com

  46. Re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate

  47. Passed 1st Reading

  48. Ref To Com On Rules and Operations of the Senate

  49. Filed

Sponsors

  • Tillman · Primary
  • Krawiec · Cosponsor
  • Brock · Primary
  • Tucker · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

2 sponsors · 2 co-sponsors · 175 not signed on

Sponsors (2)

  • Tillman
  • Brock

Co-sponsors (2)

  • Krawiec
  • Tucker

Not signed on (175)

175 members have not signed on to this bill.

Show all 175 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

C RPT Adoption

Passed 107 Yea · 0 Nay · 13 Other
Party YeaNayPresentNot Voting
Unaffiliated 68008
Democratic 14001
Republican 24004
U 1000
Total 1070013
% of votes cast 89%0%0%11%
How each member voted (120)
Member Party Vote
Lewis — Yea
McGrady — Yea
Michaux — Yea
Millis — Yea
Presnell — Yea
Szoka — Not Voting
Steinburg — Yea
Terry — Not Voting
Yarborough — Not Voting
Zachary — Yea
Autry — Yea
Black — Yea
Boles — Yea
Boswell — Yea
Collins — Yea
Conrad — Yea
Dobson — Yea
Faircloth — Yea
Fisher — Not Voting
Floyd — Yea
Fraley — Yea
Garrison — Yea
Gill — Yea
Hunter — Yea
L.Bell — Yea
DuaneHall — Yea
C.Graham — Yea
G.Graham — Yea
Beasley — Yea
Earle — Yea
Farmer-Butterfield — Yea
Goodman — Yea
Hanes — Yea
Jackson — Yea
G.Martin — Yea
R.Moore — Yea
B.Richardson — Yea
W.Richardson — Yea
B.Turner — Yea
J.Bell — Yea
BertJones — Yea
Brawley — Yea
BrendenJones — Yea
DestinHall — Yea
K.Hall — Yea
Johnson — Yea
Malone — Yea
S.Martin — Yea
T.Moore(Speaker) — Yea
Stone — Yea
Bumgardner — Yea
Burr — Yea
Cleveland — Yea
Dollar — Yea
Dulin — Yea
Elmore — Yea
Grange — Yea
Hardister — Yea
Henson — Yea
Holley — Yea
Hurley — Yea
Insko — Yea
Lucas — Yea
McElraft — Yea
McNeill — Yea
Murphy — Yea
Rogers — Yea
Saine — Yea
Speciale — Yea
Wray — Yea
R.Turner — Yea
G.Adcock — Not Voting
Bradford — Not Voting
Horn — Not Voting
Jordan — Not Voting
Williams — Yea
Amos L. Quick, III Democratic Yea
Becky Carney Democratic Yea
Cecil Brockman Democratic Not Voting
Cynthia Ball Democratic Yea
Dante Pittman Democratic Yea
Deb Butler Democratic Yea
Eric Ager Democratic Yea
Garland E. Pierce Democratic Yea
Graig Meyer Democratic Yea
Joe John Democratic Yea
Marcia Morey Democratic Yea
Mary Belk Democratic Yea
Pricey Harrison Democratic Yea
Robert T. Reives, II Democratic Yea
Shelly Willingham Democratic Yea
Carl Ford Republican Yea
Dean Arp Republican Yea
Dennis Riddell Republican Yea
Donna McDowell White Republican Yea
Donny Lambeth Republican Not Voting
Frank Iler Republican Yea
Harry Warren Republican Yea
Hugh Blackwell Republican Yea
Jay Adams Republican Not Voting
Jimmy Dixon Republican Yea
John A. Torbett Republican Yea
John M. Blust Republican Yea
John Sauls Republican Yea
Julia C. Howard Republican Yea
Kelly E. Hastings Republican Not Voting
Kevin Corbin Republican Yea
Larry C. Strickland Republican Yea
Larry W. Potts Republican Yea
Mark Brody Republican Yea
Mike Clampitt Republican Yea
Mitchell S. Setzer Republican Yea
Phil Shepard Republican Yea
Sam Watford Republican Yea
Sarah Stevens Republican Not Voting
Stephen M. Ross Republican Yea
Ted Davis, Jr. Republican Yea
W. Ted Alexander Republican Yea
William D. Brisson Republican Yea
Carla D. Cunningham U Yea

Official roll call →

Motion 8 To Adopt Conference Report

Passed 38 Yea · 0 Nay · 11 Other
Party YeaNayPresentNot Voting
Unaffiliated 23009
Democratic 7000
Republican 8002
Total 380011
% of votes cast 78%0%0%22%
How each member voted (49)
Member Party Vote
McKissick — Not Voting
Randleman — Yea
Tillman — Not Voting
Barefoot — Yea
Foushee — Not Voting
D.Davis — Yea
J.Jackson — Yea
Smith — Yea
VanDuyn — Yea
Brown — Yea
B.Jackson — Yea
Newton — Yea
Tucker — Yea
J.Davis — Not Voting
Ballard — Yea
Barringer — Not Voting
Bishop — Yea
Bryant — Not Voting
Curtis — Yea
Dunn — Not Voting
Edwards — Yea
Gunn — Yea
Harrington — Yea
Horner — Yea
Krawiec — Yea
Meredith — Not Voting
Pate — Yea
Rabin — Yea
Tarte — Yea
Wade — Yea
Wells — Yea
Woodard — Not Voting
Amanda P. Cook Democratic Yea
Dan Blue Democratic Yea
Gladys A. Robinson Democratic Yea
Jay J. Chaudhuri Democratic Yea
Joyce Waddell Democratic Yea
Paul A. Lowe, Jr. Democratic Yea
Tracy Clark Democratic Yea
Bill Rabon Republican Yea
Carl Ford Republican Not Voting
Danny Earl Britt, Jr. Republican Yea
Michael V. Lee Republican Not Voting
Norman W. Sanderson Republican Yea
Phil Berger Republican Yea
Ralph Hise Republican Yea
Tom McInnis Republican Yea
W. Ted Alexander Republican Yea
Warren Daniel Republican Yea

Official roll call →

Subjects

taxation finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 628?
SB 628 is sponsored by Tillman, Krawiec, Brock, and Tucker.
What is the current status of SB 628?
This bill has been enacted into law. Introduced April 04, 2017. Enacted.
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