NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 298

HOUSE BILL 423

 

 

AN ACT TO VEST THE DUTY OF CERTIFYING FRANCHISE AND INTANGIBLES TAXES TO LOCAL GOVERNING UNITS IN THE COMMISSIONER OF REVENUE.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 105-116 is amended by deleting the second paragraph of subsection (g) immediately following the words "for use as an ingredient or component part of a manufactured product." and immediately preceding the words "So long as there is a distribution" and inserting therein a paragraph which reads as follows:

"As soon as practicable after the date on which each quarterly payment of taxes is due under this section, the Commissioner of Revenue shall certify to the State Disbursing Officer and to the State Treasurer the amount distributable to each municipality under this section. The State Disbursing Officer shall thereupon issue a warrant on the State Treasurer to each municipality in the amount so certified."

Sec. 2.  G.S. 105-120 is amended by deleting the second paragraph of subsection (d) immediately following the words "such municipality shall be made." and immediately preceding the words "In determining" and inserting therein a paragraph which reads as follows:

"As soon as practicable after the date on which each quarterly payment of taxes is due under this section, the Commissioner of Revenue shall certify to the State Disbursing Officer and to the State Treasurer the amount distributable to each municipality under this section. The State Disbursing Officer shall thereupon issue a warrant on the State Treasurer to each municipality in the amount so certified."

Sec. 3.  G.S. 105-213 is amended to read as follows:

"Separate records by counties; disposition and distribution of taxes collected; purpose of tax. — The Commissioner of Revenue shall keep a separate record by counties of the taxes collected under the provisions of this article and shall, as soon as practicable after the close of each fiscal year, certify to the State Disbursing Officer and to the State Treasurer the amount of such taxes to be distributed to each county and municipality in the State. The State Disbursing Officer shall thereupon issue a warrant on the State Treasurer to each county and municipality in the amount so certified.

In determining the amount to be distributed there shall be deducted from net collections (total collections less refunds) the following:

(1)        The tax credit specified in the second paragraph of G.S. 105-422(d), and

(2)        The cost to the State to administer and collect the taxes levied under this article for the preceding fiscal year, and

(3)        The cost to the State for the operation of the State Board of Assessment for the preceding fiscal year.

The net amount after such deductions shall be distributed to the counties and municipalities of the State as follows:

The amount distributable to each county and to the municipalities therein from the revenue collected under §§ 105-200, 105-201, 105-202, 105-203 and 105-204 shall be determined upon the basis of the amounts collected in each county; and the amount distributable to each county and to the municipalities therein from the revenue collected under §§ 105-199 and 105-205 shall be determined upon the basis of population in each county as shown by the latest federal decennial census. The amounts so allocated to each county shall in turn be divided between the county and all municipalities therein in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding such distribution.

It shall be the duty of the chairman of the board of county commissioners of each county and the mayor of each municipality therein to report to the Commissioner of Revenue such information as he may request for his guidance in making said allotments. In the event any county or municipality fails to make such report within the time prescribed, the Commissioner of Revenue may disregard such defaulting unit in making said allotments. The amounts so allocated to each county and municipality shall be distributed and used by said county or municipality in proportion to other property tax levies made for the various funds and activities of the taxing unit receiving said allotment."

Sec. 4.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 5th day of May, 1971.