Bill Text: NC H1186 | 2011-2012 | Regular Session | Amended
Bill Title: Restore Budget Cuts/Add Temp. Sales Tax
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2012-05-30 - Ref to the Com on Commerce and Job Development, if favorable, Appropriations, if favorable, Finance [H1186 Detail]
Download: North_Carolina-2011-H1186-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
H 1
HOUSE BILL 1186
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Short Title: Restore Budget Cuts/Add Temp. Sales Tax. |
(Public) |
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Sponsors: |
Representatives Faison and Hall (Primary Sponsors). For a complete list of Sponsors, see Bill Information on the NCGA Web Site. |
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Referred to: |
Commerce and Job Development, if favorable, Appropriations, if favorable, Finance. |
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May 30, 2012
A BILL TO BE ENTITLED
AN ACT to provide for the restoration of personnel positions eliminated in the public schools, The UNiversity of north carolina, the community college system, and state government Employment pursuant to the provisions of the 2011 appropriations act; to reduce program and service reductions in medicaid and Health Choice; and to provide additional funding to the highway patrol and to the savings reserve account, all in that order, by temporarily increasing the sales and use tax by seven‑tenths of one percent until july 1, 2015.
The General Assembly of North Carolina enacts:
SECTION 1.(a) The introductory language of G.S. 105‑164.4(a) reads as rewritten:
"(a) A privilege tax is imposed on a retailer at
the following percentage rates of the retailer's net taxable sales or gross
receipts, as appropriate. The general rate of tax is four and three‑quarters
percent (4.75%).five and forty‑five hundredths percent (5.45%)."
SECTION 1.(b) G.S. 105‑l64.44F(a) reads as rewritten:
"(a) Amount. – The Secretary must distribute part of the taxes imposed by G.S. 105‑164.4(a)(4c) on telecommunications service and ancillary service. The Secretary must make the distribution within 75 days after the end of each calendar quarter. The amount the Secretary must distribute is the following percentages of the net proceeds of the taxes collected during the quarter:
(1) Eighteen and seventy one hundredths percent
(18.70%)Seventeen percent (17%) minus two million six hundred twenty
thousand nine hundred forty‑eight dollars ($2,620,948), must be
distributed to cities in accordance with this section. The deduction is one‑fourth
of the annual amount by which the distribution to cities of the gross receipts
franchise tax on telephone companies, imposed by former G.S. 105‑20,
was required to be reduced beginning in fiscal year 1995‑96 as a result
of the "freeze deduction."
(2) Seven and seven tenths percent (7.7%)Seven
percent (7%) must be distributed to counties and cities as provided in G.S. 105‑164.44I."
SECTION 1.(c) G.S. 105‑164.44I(a) reads as rewritten:
"(a) Distribution. – The Secretary must distribute to the counties and cities part of the taxes imposed by G.S. 105‑164.4(a)(4c) on telecommunications service and G.S. 105‑164.4(a)(6) on video programming service. The Secretary must make the distribution within 75 days after the end of each calendar quarter. The amount the Secretary must distribute is the sum of the revenue listed in this subsection. The Secretary must distribute two million dollars ($2,000,000) of this amount in accordance with subsection (b) of this section and the remainder in accordance with subsections (c) and (d) of this section. The revenue to be distributed under this section consists of the following:
(1) The amount specified in G.S. 105‑164.44F(a)(2).
(2) Twenty three and six tenths percent (23.6%)Twenty‑one
and forty‑five hundredths percent (21.45%) of the net proceeds of the
taxes collected during the quarter on video programming, other than on direct‑to‑home
satellite service.
(3) Thirty‑seven and one tenths percent
(37.1%)Thirty‑three and seventy‑three hundredths percent (33.73%)
of the net proceeds of the taxes collected during the quarter on direct‑to‑home
satellite service."
SECTION 1.(d) This section does not apply to construction materials purchased to fulfill a lump‑sum or unit‑price contract entered into or awarded before the effective date of the increase or entered into or awarded pursuant to a bid made before the effective date of the increase when the construction materials would otherwise be subject to the increased rate of tax provided in this section.
SECTION 1.(e) This section becomes effective June 1, 2012. Subsection (a) of this section applies to sales made on or after June 1, 2012, and subsections (b) and (c) of this section apply to distributions for months beginning on or after June 1, 2012. Subsections (a) through (c) of this section expire July 1, 2015. This section does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this section before the effective date of its amendment or repeal, nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal.
SECTION 2.(a) Effective June 1, 2012, the additional revenues accruing to the State from the temporary additional sales tax enacted in Section 1 of this act are appropriated only for the following purposes, in this order of priority, and notwithstanding the provisions of S.L. 2011‑145:
(1) First priority. –
a. To restore reductions in State funding affecting the constituent institutions of The University of North Carolina, the North Carolina Community College System, and local school administrative units, with the restoration funds to be allocated as follows:
1. Public schools. – The sum of ninety‑five million eight hundred fourteen thousand nine hundred fifty dollars ($95,814,950) for the 2012‑2013 fiscal year shall be allocated to the State Board of Education to be distributed to local school administrative units on the basis of average daily membership. Expenditures of these funds shall be limited to the salaries and benefits of public school personnel.
2. Community colleges. – The sum of nineteen million six hundred ninety‑seven thousand seven hundred eighty‑eight dollars ($19,697,788) for the 2012‑2013 fiscal year shall be allocated to the North Carolina Community College System. Expenditures of these funds shall be limited to the salaries and benefits of community colleges personnel.
3. The University of North Carolina. – The sum of one hundred eighty‑two million eight hundred forty thousand dollars ($182,840,000) for the 2012‑2013 fiscal year shall be allocated to the Board of Governors of The University of North Carolina. Expenditures of these funds shall be limited to the salaries and benefits of university personnel.
b. To rehire and reinstate employees whose State personnel positions were eliminated in the executive, judicial, and legislative branches under the provisions of S.L. 2011‑145, allocated in the amount of twenty‑four million eighty‑one thousand four hundred forty‑four dollars ($24,081,444) for the 2012‑2013 fiscal year. Expenditures of these funds shall be limited to the salaries and benefits of State employees.
(2) Second priority. – To restore funding to Medicaid and Health Choice in order to lessen the impact of program and service reductions made to those programs by S.L. 2011‑145. Restoration funds shall be allocated as follows:
a. For Medicaid, the sum of four hundred fifty‑four million dollars ($454,000,000) for the 2012‑2013 fiscal year.
b. For Health Choice, the sum of six million six hundred thousand dollars ($6,600,000) for the 2012‑2013 fiscal year.
(3) Third priority. – To restore reductions to the Highway Patrol budget for uniforms. Restoration funds shall be allocated in the amount of one million one hundred thousand dollars ($1,100,000) for the 2012‑2013 fiscal year.
(4) Fourth priority. – To increase the balance of the Savings Reserve Account for the purposes set out in G.S. 143C‑4‑2.
SECTION 2.(b) For personnel positions that are reestablished or created by the funding restoration provided by this act, the employment of persons to fill those positions shall be accomplished in accordance with applicable policies of the hiring entity to encourage the reemployment of former employees who were reduced in force due to budget reductions imposed by S.L. 2011‑145.
SECTION 2.(c) The Governor shall take all steps necessary to carry out the purposes of this act, except that the Governor is not required to restore any position that the Governor finds to have been eliminated as part of agency transfers or consolidations made primarily to achieve organizational and programmatic efficiencies and not primarily to effect savings pursuant to S.L. 2011‑145 or other legislation enacted by the 2011 General Assembly.
SECTION 2.(d) The Chief Justice of the Supreme Court shall take all steps necessary to execute the restorations required by this act in the judicial branch, except that the Chief Justice is not required to restore any position that the Chief Justice finds to have been eliminated as part of transfers or consolidations made primarily to achieve organizational and programmatic efficiencies and not primarily to effect savings pursuant to S.L. 2011‑145 or other legislation enacted by the 2011 General Assembly.
SECTION 2.(e) The Legislative Services Officer shall take all steps necessary to execute the restorations required by this act in the legislative branch, except that the Legislative Services Officer is not required to restore any position that the Officer finds to have been eliminated as part of transfers or consolidations made primarily to achieve organizational and programmatic efficiencies and not primarily to effect savings pursuant to S.L. 2011‑145 or other legislation enacted by the 2011 General Assembly.
SECTION 2.(f) There is established in the Office of State Budget and Management the Jobs, Health, and Education Restoration Fund (Fund) for the purpose of restoring budget reductions in accordance with this act. All revenue accruing to the State from the temporary additional sales tax enacted in this act shall be credited to the Fund. Monies from the Fund shall not be expended or transferred for any other purpose.
Beginning July 1, 2012, and quarterly thereafter, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on disbursements from the Fund and on the progress made in accomplishing the purposes of this act.
SECTION 2.(g) This section becomes effective June 1, 2012.
SECTION 3. Except as otherwise provided, this act is effective when it becomes law.
