GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 690
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-164.4(c) reads as rewritten:
"(c) Any person who
engages or continues in any business for which a privilege tax is
imposed by this Article shall immediately after July 1, 1979, apply for
and obtain from the Secretary upon payment of the sum of five dollars
($5.00) fifteen dollars ($15.00) a license to engage in and conduct such
the business upon the condition that the person shall pay the tax
accruing to the State under this Article; the person shall thereby be duly
licensed and registered to engage in and conduct such the business.
Except as hereinafter provided, a license issued under this subsection shall be
a continuing license until revoked for failure to comply with the provisions of
this Article. However, any person who has heretofore applied for and
obtained the license, if the license was in force and effect as of July 1,
1979, shall not be required to apply for and obtain a new license.
A license issued under this section becomes void if the
license holder Any person who ceases to be engaged in any a
business for which a privilege tax is imposed by this Article, and who Article
and remains continuously out of business for a period of five years.
The burden of proving that a license is still valid is on the license holder. years
shall apply for and obtain a new license from the Secretary upon the payment of
a tax of five dollars ($5.00), and any license previously issued under this
section shall be void. The burden of proof after such period shall be
upon the taxpayer to show that he did engage in such business within the
period, and that no new license is required.
A retailer who sells tangible personal property at a flea market shall conspicuously display his sales tax license when making sales at the flea market."
Sec. 2. G.S. 105-164.5 reads as rewritten:
"§ 105-164.5. Imposition of tax; wholesale merchant.
There is hereby levied and imposed, in addition to all
other taxes of every kind now imposed by law, a privilege or license tax upon
every person who engages in the business of selling tangible personal property
at wholesale in this State as defined herein, the same to be collected and
the amount to be determined in the following manner, to wit: State as
follows:
(1) Every wholesale
merchant as defined in this Article shall apply for and obtain an annual
license and pay tax therefor of ten dollars ($10.00). pay for the
license a tax of twenty-five dollars ($25.00). Such annual This
license tax shall be paid for in advance within the first 15
days of July in each year or, in the case of a new business, within 15 days
after business is commenced. Manufacturers making wholesale sales, as defined
in this Article, of their own manufactured products, directly and exclusively
from the place where such articles of tangible personal property the
products are manufactured are not are manufactured, shall not be required
to obtain an annual wholesale license.
(2) The sale of any
tangible personal property by any wholesale merchant to anyone other than to a
registered retailer, wholesale merchant merchant, or nonresident
retail or wholesale merchant as defined for resale shall be taxable at
the rate of tax provided in this Article upon the retail sale of
tangible personal property.
(3) The sale of any
tangible personal property by any wholesale merchant to a nonresident retail or
wholesale merchant must be in strict compliance with such regulations as may
be promulgated rules adopted by the Secretary. Secretary
and which are applicable to such sales. Any sale which A sale that does
not conform to such the regulations shall be rules is taxable
at the rate of tax provided in this Article upon the retail sale of
tangible personal property.
(4) Every wholesale merchant
who sells tangible personal property to retailers or nonresident retail or
wholesale merchants for resale shall deliver to such the customer
a bill of sale for each sale of such tangible personal property sale,
whether sold for cash or on credit, credit and shall make
and retain a duplicate or carbon copy of each such bill of sale bill
of sale, and shall keep on file all such duplicate bills each
bill of sale on file for at least three years from the date of sale.
Failure to comply with the provisions of this subsection shall subject
the wholesale merchant to liability for tax upon such the sales
at the rate of tax levied in this Article upon retail sales.
(5) The tax levied is and
shall be in addition to all other taxes whether levied in the form of
excise, license or privilege or other taxes."
Sec. 3. G.S. 105-164.6(f) reads as rewritten:
"(f) Every retailer
engaged in business in this State selling or delivering tangible personal
property for storage, use use, or consumption in this State shall
immediately after July 1, 1979, apply for and obtain from the Secretary
upon the payment of the sum of five dollars ($5.00) fifteen
dollars ($15.00) a license to engage in and conduct such the business
upon the condition that such the person shall pay the tax
accruing to the State of North Carolina under the provisions of this
Article, and he under this Article; the person shall thereby be duly
licensed and registered to engage in and conduct such the business.
Except as hereinafter provided, a license issued under this subsection shall be
a continuing license until revoked for failure to comply with the provisions of
this Article. However, any person who has heretofore applied for and
obtained such license, and such license was in force and effect as of July 1,
1979, shall not be required to apply for and obtain a new license.
A license issued under this section becomes void if the
license holder Any person who ceases to be engaged in any a
business for which a tax is imposed by this Article, and who Article
and remains continuously out of business for a period of five years.
The burden of proving that a license is still valid is on the license holder. years
shall apply for and obtain a new license from the Secretary upon the payment of
a tax of five dollars ($5.00), and any license previously issued under this
section shall be void. The burden of proof after such period shall be
upon the taxpayer to show that he did engage in such activity within the
period, and that no new license is required."
Sec. 4. G.S. 105-164.16(b) reads as rewritten:
"(b) General Reporting Periods. - Returns of taxpayers who are required by this subsection to report on a monthly or quarterly basis are due within 15 days after the end of each monthly or quarterly period. Returns of taxpayers who are required to report on a semimonthly basis are due within 10 days after the end of each semimonthly period.
A taxpayer who is consistently liable for less than twenty-five
dollars ($25.00) fifty dollars ($50.00) a month in State and local
sales and use taxes may, with the approval of the Secretary, file a return on a
quarterly basis. A taxpayer who is consistently liable for at least twenty
thousand dollars ($20,000) a month in State and local sales and use taxes
shall, when directed to do so by the Secretary, file a return on a semimonthly
basis. All other taxpayers shall file a return on a monthly basis. Quarterly
reporting periods end on the last day of March, June, September, and December;
monthly reporting periods end on the last day of the month; and semimonthly
reporting periods end on the 15th of each month and the last day of each month.
The Secretary shall monitor the amount of tax remitted by a taxpayer and shall direct a taxpayer who consistently remits at least twenty thousand dollars ($20,000) each month to file a return on a semimonthly basis. In determining the amount of tax due from a taxpayer for a reporting period the Secretary shall consider the total amount due from all places of business owned or operated by the same person as the amount due from that person.
A taxpayer who is directed to remit sales and use taxes on a semimonthly basis but who is unable to gather the information required to submit a complete return for either the first reporting period or both the first and second semimonthly reporting periods may, upon written authorization by the Secretary, file an estimated return for that first reporting period or both periods on the basis prescribed by the Secretary. Once a taxpayer is authorized to file an estimated return for the first period or both periods, the taxpayer may continue to file an estimated return for the first or both periods until the Secretary, by written notification, revokes the taxpayer's authorization to do so. When filing a return for the second semimonthly reporting period, a taxpayer who files an estimated return for the first period but not both periods shall remit the amount of tax due for both the first and second reporting periods, less the amount he remitted with his estimated return.
A taxpayer who files an estimated return for both periods is considered to have been granted an extension for both the first and second reporting periods. Notwithstanding G.S. 105-164.19, if a taxpayer who files an estimated return for both periods files a reconciling return for those periods within ten days of the due date of the return for the second period and any underpayment of estimated taxes remitted with the reconciling return is less than ten percent (10%) of the amount of taxes due for both the first and second reporting periods, no interest shall be charged. Otherwise, a taxpayer who files an estimated return for both periods shall be charged interest at the statutory rate from the due date of the return for the first reporting period to the date the reconciling return is filed."
Sec. 5. G.S. 105-164.29 reads as rewritten:
"§ 105-164.29. Application for licenses by wholesale merchants and retailers.
Every application for a license by a wholesale merchant or
retailer shall be made upon a form prescribed by the Secretary and shall set
forth the name under which the applicant transacts or intends to transact
business, the location of his place or places of business, and such other all
information as the Secretary may require. The application
shall be signed by the owner if a natural person; in the case of an association
or partnership, by a member or partner; in the case of a corporation, by an
executive officer or some other person specifically authorized by the
corporation to sign the application, to which shall be attached the written
evidence of his the person's authority. Provided,
however, that persons, firms, or corporations, A wholesale merchant or
retailer whose business extends into more than one county shall be is
required to secure only one license under the provisions of this Article
which license shall to cover all operations of such company the
business throughout the State of North Carolina. State.
When the required application has been made the Secretary
shall issue a license to the applicant. grant and issue to each
applicant such license. A license is not assignable and is valid only
for the person in whose name it is issued and for the transaction of business
at the place designated therein. in the license. The license
holder shall display the license conspicuously at all times at the place for
which it was issued. It shall be at all times conspicuously
displayed at the place of which issued.
A retailer person whose license has been previously
suspended or revoked shall pay the Secretary the sum of five dollars ($5.00)
fifteen dollars ($15.00) for the reissuance or renewal of such of
the license. A wholesale merchant whose annual license has
been previously suspended or revoked shall pay the Secretary the sum of ten
dollars ($10.00) twenty-five dollars ($25.00) for the reissuance or
renewal of such of the license for the year or fraction
thereof for which said license is reissued or renewed. remainder of the
license year.
Whenever any wholesale merchant or retailer a
license holder fails to comply with any provision of this Article or any
rule or regulation of the Secretary relating thereto, this Article, the
Secretary, upon hearing, after giving the wholesale merchant or retailer license
holder 10 days' notice in writing, specifying the time and place of hearing
and requiring him the license holder to show cause why his the
license should not be revoked, may revoke or suspend the license. license
held by such wholesale merchant or retailer. The notice may be served
personally or by registered mail directed to the last known address of the person.
license holder. All provisions with respect to review and
appeals of the Secretary's decisions as provided by G.S. 105-241.2, 105-241.3,
and 105-241.4 of the General Statutes shall be applicable apply to
this section.
Any wholesale merchant or retailer who engages in business as
a seller in this State without a license or after his the license
has been suspended or revoked, and each officer of any corporation which that
so engages in business shall be guilty of a misdemeanor and subject to a
fine of not exceeding up to five hundred dollars ($500.00) for
each such offense."
Sec. 6. G.S. 105-164.38 reads as rewritten:
"§ 105-164.38. Tax shall be a lien.
The tax imposed by this Article shall be a lien upon the
stock of goods and/or any other all personal property of any person subject
to the provisions of this Article who shall sell out or in any manner transfer
his business or stock of goods or shall quit business, and such person shall be
required to make out who is required by this Article to obtain a license
to engage in business and who stops engaging in the business by transferring
the business, transferring the stock of goods of the business, or going out of
business. A person who stops engaging in business shall file the
return provided for under Division IV of required by this Article
within 30 days after the date he sold out his business or stock of goods or
quit transferring the business, transferring the stock of goods of the
business, or going out of business. business and his successor in Any
person to whom the business or the purchaser of the entire stock
of goods was transferred shall be required to withhold sufficient
of the purchase money or money's worth in the event there is an exchange of
properties to cover the amount of said from the consideration paid for
the business or stock of goods an amount sufficient to cover the taxes due and
unpaid until such time as the former owner shall produce person
selling the business or stock of goods produces a receipt statement
from the Secretary showing that the taxes have been paid or a
certificate that no taxes are due. If the purchaser of person
who buys a business or stock of goods shall fail fails to
withhold purchase money as above provided, and the taxes shall be due and an
amount sufficient to cover the taxes and the taxes remain unpaid after the
30-day period allowed, he shall be the buyer is personally liable
for the payment of the taxes accrued and unpaid on account of the operation
of the business by the former owner. The transferee shall be liable for
payment of any sales and/or use taxes due by the transferor the unpaid
taxes, to the extent of the purchase price consideration paid
by the transferee or fair market value of the property transferred whichever
is greater. by the buyer for the business or the stock of goods.
The period of limitations for assessing liability against the buyer of a
business or the stock of goods of a business and for enforcing the lien against
the property shall expire one year after the end of the period of limitations
for assessment against the person who sold the business or the stock of
goods. Except as otherwise provided in this section, a The
transferee or successor in business and the liability of the transferee of
successor in business shall be person who buys a business or the stock
of goods of a business and that person's liability for unpaid taxes are subject
to the provisions of G.S. 105-241.1, 105-241.2, 105-241.3, and 105-241.4
and to other remedies for the collection of taxes to the same extent as if the transferee
or successor in business person had incurred the original tax
liability."
Sec. 7. G.S. 105-253 reads as rewritten:
"§ 105-253. Personal liability of officers, trustees, or receivers.
(a) Any officer, trustee,
or receiver of any corporation required to file a report with the
Secretary of Revenue, having in his Revenue who has custody of
funds of the corporation, corporation and who allows said the
funds to be paid out or distributed to the stockholders of said the
corporation without having satisfied remitted to the
Secretary of Revenue for any State taxes which that are
due and have accrued, shall be personally responsible liable for
the payment of said the tax, and in addition thereto shall
be subject to a an additional penalty of not more than equal
to the amount of tax, nor less than twenty-five percent (25%) of such
tax found to be due or accrued. tax due.
(b) Each responsible
corporate officer is made personally and individually liable: liable
for all of the following:
(1) For all All sales
and use taxes collected by a corporation upon taxable transactions of the corporation,
which liability shall be satisfied upon timely remittance of such taxes to the
Secretary by the corporation; corporation.
(2) For all All sales
and use taxes due upon taxable transactions of the corporation but upon which
the corporation failed to collect the tax, but only if the responsible officer
knew, or in the exercise of reasonable care should have known, that the tax was
not being collected; and collected.
(3) For all All taxes
due from the corporation pursuant to the provisions of Article 36 and Article
36A of Subchapter V of this Chapter.
His The liability of
the responsible corporate officer is shall be satisfied upon timely
remittance of such the tax to the Secretary by the
corporation. If said tax shall remain the tax remains unpaid
by the corporation, after the same corporation after it is due
and payable, the Secretary of Revenue may assess the tax against, and
collect the tax from, any responsible corporate officer in accordance with the
provisions of G.S. 105-241.1, which officer shall be the 'taxpayer' in such
case, as referred to in G.S. 105-241.1 et seq. the procedures in this
Article for assessing and collecting tax from a taxpayer. As used in
this section, the words term 'responsible corporate officers'
mean the president and the treasurer of a corporation and may include such officer'
includes the president and the treasurer of the corporation and any other
officers as have been assigned the duty of filing tax returns and
remitting the taxes to the Secretary of Revenue on behalf of the
corporation. Any penalties which that may be imposed pursuant
to the provisions of under G.S. 105-236 and which are applicable that
apply to a deficiency shall apply to any assessment provided for herein.
made under this section. All other The provisions
of this Article 9, Schedule J of the Revenue Laws shall apply to such
apply to an assessment made under this section to the extent that
they are not inconsistent with the provisions of this section.
The period of limitations for assessing a responsible corporate officer for unpaid taxes under this section shall expire one year after the expiration of the period of limitations for assessment against the corporation.
(c) The Secretary of
State shall withhold the issuance of any certificate not file
articles of dissolution to, or withdrawal of, any corporation, domestic
or foreign, of a domestic corporation or issue a certificate of
withdrawal of a foreign corporation until the receipt by him of a notice
from notified by the Secretary of Revenue to the effect that any
such the corporation has met the requirements with respect to
reports and taxes required imposed by this Subchapter. Subchapter
or Subchapter V of this Chapter."
Sec. 8. Section 3 of Chapter 347 of the 1991 Session Laws is repealed.
Sec. 9. G.S. 105-159.1, as amended by Section 13 of Chapter 45 of the 1991 Session Laws, reads as rewritten:
"§ 105-159.1. Designation of tax by individual to political party.
(a) Every individual
whose income tax liability for the taxable year is one dollar ($1.00) or more
may designate on his or her income tax return that one dollar ($1.00) of the
tax shall be paid to the State Treasurer for the use of all political
parties. credited to the North Carolina Political Parties Financing
Fund. In the case of a married couple filing a joint return whose
income tax liability for the taxable year is two dollars ($2.00) or more, each
spouse may designate on the income tax return that one dollar ($1.00) of the
tax shall be paid to the State Treasurer for the use of all political
parties. credited to the North Carolina Political Parties Financing
Fund. The Secretary shall credit all amounts so designated to the State
Board of Elections for deposit with the State Treasurer for the use of all
political parties upon Amounts credited to the Fund shall be allocated
among the political parties on a pro rata basis according to their
respective party voter registrations according to as determined by the
most recent certification of the State Board of Elections. As used in this
section, the term 'political party' means one of the following that has at
least one percent (1%) of the total number of registered voters in the State:
(1) A political party that
at the last preceding general State election received at least ten percent
(10%) of the entire vote cast in the State for Governor or for presidential
electors. or
(2) A group of voters who by July 1 of the preceding calendar year, by virtue of a petition as a new political party, had duly qualified as a new political party within the meaning of Chapter 163 of the General Statutes.
(b) For each quarterly
period beginning on or after January 1, 1978, on or before the last day of the
month following the close of the quarterly period, the Secretary shall remit
all funds designated pursuant to this section collected during the preceding
quarter to the State Treasurer who shall deposit them in an interest-bearing
account to be known as the North Carolina Political Parties Financing Fund. Any
interest earned on funds so deposited shall be credited to the political party
to which the funds were allocated. Amounts designated under
subsection (a) shall be credited to the North Carolina Political Parties
Financing Fund on a quarterly basis. Interest earned by the Fund shall be
credited to the Fund and shall be allocated among the political parties on the
same basis as the principal of the Fund. A report to the State
Treasurer, The State Board of Elections, and Elections,
which administers the Fund, shall make a quarterly report to each State
party chairman shall accompany each remittance, and shall detail stating
the amount of funds forwarded, allocated to each party for that
quarter, the cumulative total of funds forwarded allocated to
each party to date for the year, and an estimate of the probable total
amount to be collected and forwarded allocated to each party for
that calendar year.
(c) Repealed by Session Laws 1983, c. 481.
(d) The Secretary shall amend the income tax return in order that all taxpayers desiring to make the political contributions authorized in this section may do so by designating on the front face of the tax return. The line of authorization for the designation shall be color contrasted with the color scheme of the remainder of the income tax return. The return or its accompanying explanatory instruction shall readily indicate that any designations neither increase nor decrease an individual's tax liability.
(e) A paid preparer of tax returns may not designate on a return that the taxpayer does or does not desire to make the political contribution authorized in this section unless the taxpayer or the taxpayer's spouse has consented to the designation."
Sec. 10. G.S. 130A-309.12(b)(3) reads as rewritten:
"(3) Ten percent (10%) of
the proceeds of the scrap tire disposal fee tax imposed pursuant
to G.S. 130A-309.55 and G.S. 130A-309.56. under Article 5B of Chapter
105 of the General Statutes."
Sec. 11. Sections 2 and 4 of this act become effective July 1, 1992. Sections 8 through 11 of this act are effective upon ratification. The remaining sections of this act become effective August 1, 1991. Sections 1, 3, and 5 of this act apply to licenses issued or renewed on or after August 1, 1991. This act does not extend a period of limitations that expired before the act is ratified.
In the General Assembly read three times and ratified this the 16th day of July, 1991.
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James C. Gardner
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives