GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2008-207
HOUSE BILL 2530
AN ACT to make administrative changes to the solid waste disposal tax AND TO ALLOW A REFUND FOR ALL UNSALABLE OTHER TOBACCO PRODUCTS.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105-187.62 reads as rewritten:
"§ 105-187.62. Administration.
- The owner or operator of each landfill and transfer station permitted
pursuant to Article 9 of Chapter 130A of the General Statutes
maintain scales designed to determine waste tonnage that are approved by
the Department of Agriculture and Consumer Services. Each owner or operator shall
must record waste tonnage at the time the waste is receiveddisposed
of in a landfill or transferred to a station for disposal outside the State
and must maintain other records as required by the Secretary of Revenue.
An owner or operator may add the amount of the solid waste disposal tax due to
the charges made to a third party for disposal of municipal solid waste or
construction and demolition debris. The tax imposed by this Article is
payable and a return is due to be filed in the same manner as required under
G.S. 105-164.16 for sales and use tax.
(b) Payment. - The tax imposed by this Article is payable when a return is due. A return and payment are due on a quarterly basis. A quarterly return covers a calendar quarter and is due by the last day of the month following the end of the quarter.
(c) Bad Debt Deduction. - In the event that an owner or operator pays the tax on tonnage received from a customer and the account of that customer is found to be worthless and charged off for income tax purposes, the owner or operator may recover the tax paid on the tonnage it received but for which it was never compensated. The tax shall be recovered by reducing the overall tonnage on which the owner or operator pays tax in a calendar quarter by the tonnage for which it was never compensated from the worthless account. A local government that has paid tax on an account that is subsequently found to be worthless shall recover the tax paid in the same manner, if it meets all the conditions for recovery that would apply if the local government were subject to income tax. If the owner or operator subsequently collects on an account that has been declared worthless, any tax recovered must be repaid in the next calendar quarter."
SECTION 2. G.S. 105-187.63 reads as rewritten:
"§ 105-187.63. Use of tax proceeds.
From the taxes received pursuant to this Article, the
Secretary may retain the costs of collection, not to exceed two hundred twenty-five
thousand dollars ($225,000) a year, as reimbursement to the Department. The
shall must credit or distribute taxes received pursuant
to this Article, less the cost of collection, on a quarterly basis as
(1) Fifty percent (50%) to the Inactive Hazardous Sites Cleanup Fund established by G.S. 130A-310.11.
seventy-five one hundredths percent (18.75%) to cities in the State on a per
capita basis and eighteen and seventy-five one hundredths percent (18.75%)Thirty-seven
and one-half percent (37.5%) to cities and counties in the State on
a per capita basis.basis, using the most recent annual estimate of
population certified by the State Budget Officer. One-half of this amount must
be distributed to cities, and one-half of this amount must be distributed to
counties. For purposes of this subdivision, persons who reside within a
city shall not be counted in the population of the county or counties in which
the city is located.distribution, the population of a county does not
include the population of a city located in the county.
A city or county is excluded from the distribution under this subdivision if it does not provide solid waste management programs and services and is not responsible by contract for payment for these programs and services, unless it is served by a regional solid waste management authority established under Article 22 of Chapter 153A of the General Statutes. The Department of Environment and Natural Resources must provide the Secretary with a list of the cities and counties that are excluded under this subdivision. The list must be provided by May 15 of each year and applies to distributions made in the fiscal year that begins on July 1 of that year.
Funds distributed under this subdivision
shall must be used by a unit
of local governmentcity or county solely for solid waste management
programs and services. A city or county that receives funds under this
subdivision and is served by a regional solid waste management authority must
forward the amount it receives to that authority.
(3) Twelve and one-half percent (12.5%) to the Solid Waste Management Trust Fund established by G.S. 130A-309.12."
SECTION 3. Notwithstanding G.S. 105-187.63(2), as amended by this act, the Department of Environment and Natural Resources must provide a list to the Secretary of Revenue of the cities and counties that are excluded from the distribution under that subdivision by September 15, 2008. The list applies to distributions made in fiscal year 2008-2009.
SECTION 4. G.S. 105-113.39 reads as rewritten:
"§ 105-113.39. Discount; refund.
(a) Discount. - A
wholesale dealer or a retail dealer who is primarily liable under G.S. 105-113.35(b)
for the excise taxes imposed by this Part, who files a timely report under
G.S. 105-113.37, and who sends a timely payment may deduct from the amount
due with the report a discount of two percent (2%). This discount covers
due to damage to tobacco products, expenses incurred in preparing the
records and reports required by this Part, Part and the expense
of furnishing a bond.
(b) Refund. - A wholesale
dealer or retail dealer who is primarily liable under
G.S. 150-113.35(b)G.S. 105-113.35(b)
for the excise taxes imposed by this Part and is in possession of stale or
otherwise unsalable cigars tobacco products upon which the tax
has been paid may return the cigarstobacco products to the
manufacturer and apply to the Secretary for refund of the tax. The application
shall be in the form prescribed by the Secretary and shall be accompanied by an
affidavit from the manufacturer stating the number of cigarslisting
the tobacco products returned to the manufacturer by the applicant. The
Secretary shall refund the tax paid, less the discount allowed, on the unsalable
SECTION 5. Section 4 of this act becomes effective October 1, 2008, and applies to products returned on or after that date. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 17th day of July, 2008.
s/ Beverly E. Perdue
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives
s/ Michael F. Easley
Approved 9:37 a.m. this 9th day of August, 2008