Senate Bill 1769-First Edition

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2007

S 1

SENATE BILL 1769

Short Title: Energy Efficiency Sales Tax Holiday.		(Public)
Sponsors:	Senators Snow; Albertson, Atwater, Berger of Franklin, Boseman, Clodfelter, Cowell, Dalton, Dorsett, Foriest, Garrou, Goss, Graham, Hagan, Jones, Kinnaird, McKissick, Nesbitt, Purcell, Queen, Rand, and Swindell.
Referred to:	Finance.

May 21, 2008

A BILL TO BE ENTITLED

AN ACT TO Establish a sales and Use tax holiday for certain Energy efficient products.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 105‑164.3 reads as rewritten:

"§ 105‑164.3. Definitions.

The following definitions apply in this Article:

…

(7) Dietary supplement. – A product that is intended to supplement the diet of humans and is required to be labeled as a dietary supplement under federal law, identifiable by the "Supplement Facts" box found on the label.

(7a) Digital Television transition date. – February 17, 2009, or any later date specified by the Federal Communications Commission for full‑power television stations to end broadcast transmission of analog signals.

(7b) Direct mail. – Printed material delivered or distributed by the United States Postal Service or other delivery service to a mass audience or to addresses on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items is not billed directly to the recipients. The term includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. The term does not include multiple items of printed material delivered to a single address.

…

(8g) Energy Star qualified product. – Defined in the Streamlined Agreement.

…."

SECTION 2. The catch line of G.S. 105‑164.13C reads as rewritten:

"§ 105‑164.13C. ~~Sales and use tax holiday.~~Sales and use tax holiday for school supplies and clothing."

SECTION 3.(a) Article 5 of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105‑164.13D. Sales and use tax holiday for Energy Star qualified products.

(a) The taxes imposed by this Article do not apply to the following categories of Energy Star qualified products with a sales price of six thousand dollars ($6,000) or less per item unless otherwise specified below, if sold between 12:01 A.M. on the third Monday of April and 11:59 P.M. the following Sunday:

(1) Appliances: battery chargers, clothes washers, dehumidifiers, dishwashers, freezers, refrigerators, room air conditioners, room air cleaners, and residential water heaters.

(2) Heating and Cooling: air‑source heat pumps, boilers, central air conditioners, ceiling fans, furnaces, geothermal heat pumps, programmable thermostats, and ventilating fans.

(3) Home Envelope: insulation, air sealing products, windows, doors, and skylights.

(4) Home Electronics: cordless phones, external power adapters, televisions with a sales price of eight hundred dollars ($800) or less per item capable of receiving over‑the‑air television broadcasts after the Digital Television transition date, and digital to analog converters necessary for receiving over‑the‑air television broadcasts on analog televisions after the Digital Television transition date.

(5) Lighting: compact fluorescent light bulbs, decorative light strings, and residential light fixtures.

(b) The exemption allowed by this section shall not apply to any of the following:

(1) Sales of an item for use in a trade or business.

(2) Sales of items exempted by G.S. 105‑164.13C.

(3) Rentals.

SECTION 3.(b) G.S. 105‑164.13D, as enacted by subsection (a) of this section, reads as rewritten:

"§ 105‑164.13D. Sales and use tax holiday for Energy Star qualified products.

(a) The taxes imposed by this Article do not apply to the following categories of Energy Star qualified products with a sales price of six thousand dollars ($6,000) or less per item if sold between 12:01 A.M. on the third Monday of April and 11:59 P.M. the following Sunday:

(1) Appliances: battery chargers, clothes washers, dehumidifiers, dishwashers, freezers, refrigerators, room air conditioners, room air cleaners, and residential water heaters.

(2) Heating and Cooling: air‑source heat pumps, boilers, central air conditioners, ceiling fans, furnaces, geothermal heat pumps, programmable thermostats, and ventilating fans.

(3) Home Envelope: insulation, air sealing products, windows, doors, and skylights.

(4) Home Electronics: cordless phones, and external power adapters. external power adapters, televisions with a sales price of eight hundred dollars ($800) or less per item capable of receiving over‑the‑air television broadcasts after the Digital Television transition date, and digital to analog converters necessary for receiving over‑the‑air television broadcasts on analog televisions after the Digital Television transition date.

(5) Lighting: compact fluorescent light bulbs, decorative light strings and residential light fixtures.

(b) The exemption allowed by this section shall not apply to any of the following:

(1) Sales of an item for use in a trade or business.

(2) Sales of items exempted by G.S. 105‑164.13C.

(3) Rentals.

SECTION 4. G.S. 105‑467 reads as rewritten:

"§ 105‑467. Scope of sales tax.

…

(b) Exemptions and Refunds. – The State exemptions and exclusions contained in G.S. 105‑164.13, the State sales and use tax ~~holiday~~ holidays contained in G.S. 105‑164.13C and G.S. 105‑164.13D, and the State refund provisions contained in G.S. 105‑164.14 apply to the local sales and use tax authorized to be levied and imposed under this Article. 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, other than electricity, telecommunications service, and ancillary service. 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 that is owned or leased by the entity and is being erected, altered, or repaired 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. A request for a refund shall be in writing and shall include any information and documentation required by the Secretary. A request for a refund is due within six months after the end of the entity's fiscal year. Refunds applied for more than three years after the due date are barred.

(c) Sourcing. – The local sales tax authorized to be imposed and levied under this Article applies to taxable transactions by retailers whose place of business is located within the taxing county. The sourcing principles in G.S. 105‑164.4B apply in determining whether the local sales tax applies to a transaction."

SECTION 5. The second paragraph of Section 4 of Chapter 1096 of the 1967 Session Laws reads as rewritten:

"The exemptions and exclusions contained in G.S. 105‑164.13 and the sales and use tax ~~holiday~~ holidays contained in G.S. 105‑164.13C and G.S. 105‑164.13D apply with equal force and like manner to the local sales tax authorized to be imposed and levied under this division. The county shall have no authority, with respect to the local sales and use tax imposed under this division, to change, alter, add, or delete any exemptions or exclusions contained under G.S. 105‑164.13."

SECTION 6. Sections 1, 2, 3(a), 4, and 5 of this Act become effective July 1, 2008, and are applicable to sales made on or after that date. Section 3(b) of this Act becomes effective July 1, 2009, and is applicable to sales made on or after that date.