Bill Text: NC S503 | 2013-2014 | Regular Session | Amended
Bill Title: Exempt Start-Ups From Privilege Lic. Taxes
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-03-28 - Ref To Com On Finance [S503 Detail]
Download: North_Carolina-2013-S503-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S 1
SENATE BILL 503
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Short Title: Exempt Start‑Ups From Privilege Lic. Taxes. |
(Public) |
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Sponsors: |
Senator Clark (Primary Sponsor). |
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Referred to: |
Finance. |
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March 28, 2013
A BILL TO BE ENTITLED
AN ACT to exempt start‑up Entities from privilege taxes.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑33(b) reads as rewritten:
"(b) License Taxes. � A license tax imposed by this
Article is an annual tax. The tax is due by July 1 of each year. The tax is
imposed for the privilege of engaging in a specified activity during the fiscal
year that begins on the July 1 due date of the tax. The full amount of a
license tax applies to a person person, other than a start‑up entity,
who, during a fiscal year, in an activity for which this Article requires a
license. Before a person engages in an activity for which this Article requires
a license, the person must obtain the required license."
SECTION 2. G.S. 105‑33.1 is amended by adding a new subdivision to read:
"§ 105‑33.1. Definitions.
The following definitions apply in this Article:
(1) City. � Defined in G.S. 105‑228.90.
(1a) Code. � Defined in G.S. 105‑228.90.
(2) Repealed by Session Laws 1998‑95, s. 3.
(3) Person. � Defined in G.S. 105‑228.90.
(4) Secretary. � Defined in G.S. 105‑228.90.
(5) Start‑up entity. � A person that begins to engage in an activity that requires a license under this Article but has not been engaged in the activity for more than one year."
SECTION 3. G.S. 153A‑152(b) reads as rewritten:
"(b) Telecommunications Restriction. � A county may not impose a license, franchise, or privilege tax on a start‑up entity, as defined in G.S. 105‑33, or a company taxed under G.S. 105‑164.4(a)(4c)."
SECTION 4. G.S. 160A‑211(c) is amended by adding a new subdivision to read:
"(c) Prohibition. � A city may not impose a license, franchise, or privilege tax on a start‑up entity, as defined in G.S. 105‑33, or a person engaged in any of the businesses listed in this subsection. These businesses are subject to a State tax for which the city receives a share of the tax revenue.
(1) Supplying piped natural gas taxed under Article 5E of Chapter 105 of the General Statutes.
(2) Providing telecommunications service taxed under G.S. 105‑164.4(a)(4c).
(3) Providing video programming taxed under G.S. 105‑164.4(a)(6)."
SECTION 5. This act becomes effective July 1, 2013.
