North Carolina SB 1158: Electricity Franchise Tax Distribution.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2007 
S 1 
SENATE BILL 1158 
 
 
 
 
Short Title:    Electricity Franchise Tax Distribution. (Public)
Sponsors:      Senator      Hoyle.      
Referred to:   Rules and Operations of the Senate. 
March 22, 2007 
 
A BILL TO BE ENTITLED 1 
AN   ACT   TO   DIRECT   THE   REVENUE   LAWS   STUDY   COMMITTEE   TO   2 
DETERMINE     A     DIFFERENT     METHOD     FOR     DISTRIBUTING     THE     3 
FRANCHISE   TAX   ON   ELECTRIC   POWER   COMPANIES   IN   ORDER   TO   4 
SIMPLIFY THE DISTRIBUTION, REDUCE THE ADMINISTRATIVE BURDEN 5 
ASSOCIATED WITH THE DISTRIBUTION, AND PREVENT ERRORS IN THE 6 
DISTRIBUTION. 7 
The General Assembly of North Carolina enacts: 8 
SECTION  1.    The  General  Assembly  finds  that  the  current  distribution  to  9 
cities  under  G.S.  105-116.1  of  part  of  the  franchise  tax  on  electric  power  companies  10 
imposes unnecessary administrative burdens on the cities, the power companies, and the 11 
Department of Revenue and results in numerous errors in the distribution.  The Revenue 12 
Laws Study Committee is directed to recommend a method of distributing this revenue 13 
to the cities on the basis of a formula that uses factors such as population and percentage 14 
share   of   prior   distributions   rather   than   service   inside   constantly   changing   city   15 
boundaries.  The  Committee  must  consult  with  the  League  of  Municipalities  and  the  16 
Department of Revenue in developing a recommendation.  The Committee must include 17 
its recommendation on a distribution method it its report to the 2008 Regular Session of 18 
the 2007 General Assembly. 19 
SECTION 2.  This act is effective when it becomes law. 20