Bill Text: NC H917 | 2011-2012 | Regular Session | Amended
Bill Title: Modify Local Sales Tax City Distribution
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-10 - Re-ref Com On Rules, Calendar, and Operations of the House [H917 Detail]
Download: North_Carolina-2011-H917-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
H 1
HOUSE BILL 917
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Short Title: Modify Local Sales Tax City Distribution. |
(Public) |
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Sponsors: |
Representative Hamilton (Primary Sponsor). For a complete list of Sponsors, see Bill Information on the NCGA Web Site. |
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Referred to: |
Finance. |
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May 5, 2011
A BILL TO BE ENTITLED
AN ACT to modify the distribution between counties and cities of the local government sales and use taxes.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑472(b) reads as rewritten:
"(b) Distribution Between Counties and Cities. – The Secretary shall divide the amount allocated to each taxing county among the county and its municipalities in accordance with the method determined by the county. The board of county commissioners shall, by resolution, choose one of the following methods of distribution:
(1) Per Capita Method. – The net proceeds of the tax
collected in a taxing county shall be distributed to that county and to the
municipalities in the county on a per capita basis according to the total
population of the taxing county, plus the total population of the
municipalities in the county. In the case of a municipality located in more
than one county, only that part of its population living in the taxing county
is considered its "total population". In order to make the
distribution, the Secretary shall determine a per capita figure by dividing the
amount allocated to each taxing county by the total population of that county
plus the total population of all municipalities in the county. The
Secretary shall then multiply this per capita figure by the unincorporated population
of the taxing county and by the population of each municipality in the county;
each respective product shall be the amount to be distributed to the county and
to each municipality in the county. To determine the population of each county
and each municipality, the Secretary shall use the most recent annual estimate
of population certified by the State Budget Officer.
(2) Ad Valorem Method. – The net proceeds of the tax
collected in a taxing county shall be distributed to that county and the
municipalities in the county in proportion to the total amount of ad valorem
taxes levied by each on property having a tax situs in the taxing county during
the fiscal year next preceding the distribution. The net proceeds of the
tax collected in a taxing county shall be distributed to that county and the
municipalities according to each unit's proportional share. The county's
proportional share is determined by dividing the total amount of ad valorem
taxes levied on property having a tax situs in the taxing county's
unincorporated area during the fiscal year next preceding the distribution by
the total amount of ad valorem taxes levied by the county and each municipality
in the county on property having a tax situs in the taxing county during the
fiscal year next preceding the distribution. Each municipality's proportional
share is determined by dividing the total amount of ad valorem taxes levied on
property having a tax situs in the municipality during the fiscal year next preceding
the distribution by the total amount of ad valorem taxes levied by the county
and each municipality in the county on property having a tax situs in the
taxing county during the fiscal year next proceeding the distribution. For
purposes of this section, the amount of the ad valorem taxes levied by a county
or municipality includes ad valorem taxes levied by the county or municipality
in behalf of a taxing district and collected by the county or municipality. In
addition, the amount of taxes levied by a county includes ad valorem taxes
levied by a merged school administrative unit described in G.S. 115C‑513
in the part of the unit located in the county. In computing the amount of tax
proceeds to be distributed to each county and municipality, the amount of any
ad valorem taxes levied but not substantially collected shall be ignored. Each
county and municipality receiving a distribution of the proceeds of the tax
levied under this Article shall in turn immediately share the proceeds with each
district in behalf of which the county or municipality levied ad valorem taxes
in the proportion that the district levy bears to the total levy of the county
or municipality. Any county or municipality that fails to provide the
Department of Revenue with information concerning ad valorem taxes levied by it
adequate to permit a timely determination of its appropriate share of tax
proceeds collected under this Article may be excluded by the Secretary from
each monthly distribution with respect to which the information was not
provided in a timely manner, and those tax proceeds shall then be distributed
only to the remaining counties or municipalities, as appropriate. For the
purpose of computing the distribution of the tax under this subsection to any
county and the municipalities located in the county for any month with respect
to which the property valuation of a public service company is the subject of
an appeal and the Department of Revenue is restrained by law from certifying
the valuation to the county and the municipalities in the county, the
Department shall use the last property valuation of the public service company
that has been certified.
The board of county commissioners in each taxing county shall, by resolution adopted during the month of April of each year, determine which of the two foregoing methods of distribution shall be in effect in the county during the next succeeding fiscal year. In order for the resolution to be effective, a certified copy of it must be delivered to the Secretary in Raleigh within 15 calendar days after its adoption. If the board fails to adopt a resolution choosing a method of distribution not then in effect in the county, or if a certified copy of the resolution is not timely delivered to the Secretary, the method of distribution then in effect in the county shall continue in effect for the following fiscal year. The method of distribution in effect on the first of July of each fiscal year shall apply to every distribution made during that fiscal year."
SECTION 2. This act is effective when it becomes law.
