North Carolina SB 576: Sales Tax Exemption for Schools.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2003 
S 1 
SENATE BILL 576 
 
 
 
 
Short Title:    Sales Tax Exemption for Schools. (Public)
Sponsors: Senators Clodfelter; and Hartsell. 
Referred to:   Finance. 
March 31, 2003 
 
A BILL TO BE ENTITLED 1 
AN  ACT  TO  PROMOTE  EFFICIENCY  IN  GOVERNMENT  BY  ALLOWING  A  2 
SALES   AND   USE   TAX   EXEMPTION   FOR   LOCAL   SCHOOL   BOARDS   3 
INSTEAD  OF  A  SALES  AND  USE  TAX  REFUND  TO  LOCAL  SCHOOL  4 
BOARDS. 5 
The General Assembly of North Carolina enacts: 6 
SECTION  1.    G.S.  105-164.13  is  amended  by  adding  a  new  subdivision  to  7 
read: 8 
"§ 105-164.13.  Retail sales and use tax. 9 
The  sale  at  retail,  the  use,  storage  or  consumption  in  this  State  of  the  following  10 
tangible personal property is specifically exempted from the tax imposed by this Article: 11 
... 12 
(51)     Items  subject  to  sales  and  use  tax  under  G.S.  105-164.4,  other  than  13 
electricity  and  telecommunications  service,  if  all  of  the  following  14 
conditions are met: 15 
a.  The  items  are  purchased  by  a  local  school  administrative  unit  16 
for its own use and in accordance with G.S. 105-164.29A. 17 
b.  The  items  are  purchased  pursuant  to  a  valid  purchase  order  18 
issued  by  the  local  school  administrative  unit  that  contains  the  19 
exemption number of the unit and a description of the property 20 
purchased,  or  the  items  purchased  are  paid  for  with  a  check,  21 
electronic  deposit,  credit  card,  procurement  card,  or  credit  22 
account of the local school administrative unit. 23 
c.  For  all  purchases  other  than  by  a  purchase  order  issued  by  the  24 
local  school  administrative  unit,  the  unit  must  provide  to  or  25 
have on file with the retailer the unit's exemption number." 26 
SECTION  2.    Part  5  of  Article  5  of  Chapter  105  of  the  General  Statutes  is  27 
amended by adding a new section to read: 28 
"§ 105-164.29A.  Local school administrative unit exemption process. 29 

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2003 
Page 2   Senate Bill 576-First Edition 
(a)
      Application.   –   To   be   eligible   for   the   exemption   provided   in   G.S.   1 
105-164.13(52), a local school administrative unit must obtain from the Department of 2 
Revenue  a  sales  tax  exemption  number.  The  application  for  exemption  must  be  in  the  3 
form  required  by  the  Secretary,  be  signed  by  the  local  school  administrative  unit's  4 
finance  officer,  and  contain  any  information  required  by  the  Secretary.  The  Secretary  5 
must  assign  a  sales  tax  exemption  number  to  a  local  school  administrative  unit  that  6 
submits a proper application.  7 
(b)  Liability.  –  A  local  school  administrative  unit  that  does  not  use  the  items  8 
purchased  with  its  exemption  number  must  pay  the  tax  that  should  have  been  paid  on  9 
the items purchased, plus interest calculated from the date the tax would otherwise have 10 
been paid." 11 
SECTION  3.    Section  1  of  this  act  becomes  effective  July  1,  2004,  and  12 
applies to sales made on or after that date. The remainder of this act becomes effective 13 
January 1, 2004.  14