NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

CHAPTER 150

HOUSE BILL 111

AN ACT TO PROVIDE FOR A SUNDRIES LICENSE TAX.

The General Assembly of North Carolina enacts:

Section 1.  A new section is added to Article 2 of Chapter 105 of the General Statutes to be numbered and to read as follows:

"§ 105-65.2.  Sundries license tax. — (a) Every person, firm, or corporation engaged in any of the businesses listed in subsection (b) of this section shall apply for and procure from the Secretary of Revenue a State 'sundries license' for the transacting of such business. The tax for each license shall be sixteen dollars ($16.00) and one license shall be obtained for each location at which any of the businesses enumerated in subsection (b) are engaged in; however, only one sundries license shall be required for any one location regardless of the number of enumerated businesses being engaged in at that location.

(b)        The sundries license shall be procured and the tax paid by persons, firms, or corporations engaged in any one or more of the following business activities:

(1)        the sale of sandwiches in drug stores, service stations, or any other stands or places not licensed and taxed as a restaurant under G.S. 105-62; however, as used in this subdivision, the word 'sandwiches' shall not be interpreted or construed to include crackers or cookies in combination with any food filling;

(2)        operating, maintaining or placing on location any of the following types of dispensers or machines:

(i)         dispensers of cigarettes or other tobacco products;

(ii)        dispensers of soft drinks;

(iii)       dispensers of food or other merchandise, or

(iv)       weighing machines;

(3)        operating a soda fountain or soft drink stand; or

(4)        retailing or jobbing cigarettes, cigars, chewing tobacco, snuff or any other tobacco products.

(c)        Counties shall not levy any license tax on the businesses taxed under this section, but cities and towns may, except as provided in subsection (g) of this section, levy a license tax not in excess of one fourth the tax levied by the State.

(d)        The word 'dispenser' as used in this section shall include any machine or mechanical device through the medium of which any of the merchandise referred to in this section is purchased, distributed or sold.

(e)        The provisions of this section shall not apply to the sale, through dispensers or otherwise, of milk, milk drinks, dairy products, or newspapers, or to dispensers dispensing merchandise for five cents (5¢) or less.

(f)         No tax shall be levied under this section, for the privilege of operating vending machines or the sale of any commodity through such machines, against any vending machine operator, licensed under G.S. 105-65.1 and required thereby to pay a gross receipts tax.

(g)        In lieu of the tax of sixteen dollars ($16.00) imposed in subsection (a) of this section, a tax of five dollars ($5.00) shall be required for a sundries license for those persons licensed as vending machine operators under G.S. 105-65.1 but not required by that section to pay a gross receipts tax when such persons are liable for payment of the sundries tax. Cities and towns shall not levy any license taxes on persons taxed at the five dollar ($5.00) rate under this subsection."

Sec. 2.  G.S. 105-62(b) is repealed.

Sec. 3.  Subdivisions (3) and (4) of subsection (b) of G.S. 105-65.1 are repealed.

Sec. 4.  G.S. 105-79 is repealed.

Sec. 5.  G.S. 105-84 is repealed.

Sec. 6.  This act shall become effective July 1, 1979.

In the General Assembly read three times and ratified, this the 16th day of March, 1979.