North Carolina HB 1158: Sampson County Local Option Sales Tax.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2007 
H 1 
HOUSE BILL 1158* 
 
 
 
 
Short Title:    Sampson County Local Option Sales Tax. (Local)
Sponsors:      Representatives      Langdon and Bell (Primary Sponsors). 
Referred to:   Finance. 
March 29, 2007 
 
A BILL TO BE ENTITLED 1 
AN  ACT  TO  AUTHORIZE  SAMPSON  COUNTY  TO  LEVY  A  ONE-HALF  CENT  2 
LOCAL  SALES  AND  USE  TAX  FOR  PUBLIC  SCHOOL  CAPITAL  OUTLAY  3 
PURPOSES AND COMMUNITY COLLEGE CAPITAL OUTLAY PURPOSES. 4 
The General Assembly of North Carolina enacts:  5 
SECTION 1.  This act applies to Sampson County only. 6 
SECTION  2.    Subchapter  VIII  of  Chapter  105  of  the  General  Statutes  is  7 
amended by adding a new Article to read: 8 
"Article 46.
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"Fourth One-Half Cent (1/2¢) Local Government Sales and Use Tax.
 10 
"§ 105-535.  Short title.
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This  Article  is  the  Fourth  One-Half  Cent  (1/2¢)  Local  Government  Sales  and  Use  
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Tax Act.
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"§ 105-536.  Limitations.
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This  Article  applies  only  to  counties  that  levy  the  first  one-cent  (1¢)  sales  and  use  
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tax  under  Article  39  of  this  Chapter  or  under  Chapter  1096  of  the  1967  Session  Laws,  
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the first one-half cent (1/2¢) local sales and use tax under Article 40 of this Chapter, the 
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second one-half cent (1/2¢) local sales and use tax under Article 42 of this Chapter, and 
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the third one-half cent (1/2¢) local sales and use tax under Article 44 of this Chapter.
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"§ 105-537.  Levy of tax.
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The  board  of  commissioners  of  a  county  may,  by  resolution,  levy  one-half  percent  
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(1/2%)  local  sales  and  use  taxes  in  addition  to  any  other  State  and  local  sales  and  use  
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taxes levied pursuant to law. Before adopting a resolution under this Article, the board 
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of  commissioners  must  give  at  least  10  days'  public  notice  of  its  intent  to  adopt  the  
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resolution and must hold a public hearing on the issue of adopting the resolution.
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"§ 105-538.  Administration of taxes.
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Except as provided in this Article, the adoption, levy, collection, administration, and 
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repeal  of  the  additional  taxes  authorized  by  this  Article  shall  be  in  accordance  with  
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General Assembly of North Carolina Session 2007 
Page 2   House Bill 1158*-First Edition 
Article  39  of  this  Chapter.  A  tax  levied  under  this  Article  does  not  apply  to  the  sales  
1 
price of food that is exempt from tax pursuant to G.S. 105-164.13B.
 2 
"§ 105-539.  Distribution and use of taxes.
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(a)
  Distribution.  –  The  Secretary  shall,  on  a  monthly  basis,  distribute  to  each  4 
taxing  county  the  net  proceeds  of  the  tax  collected  in  that  county  under  this  Article.  If  
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the  Secretary  collects  taxes  under  this  Article  in  a  month  and  the  taxes  cannot  be  
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identified as being attributable to a particular taxing county, the Secretary shall allocate 
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the  taxes  among  the  taxing  counties  in  proportion  to  the  amount  of  taxes  collected  in  
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each  county  under  this  Article  in  that  month  and  shall  include  them  in  the  monthly  
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distribution.
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(b)
 Use. – A county may use the proceeds of a tax levied under this Article only 11 
for  public  school  capital  outlay  purposes,  community  college  capital  outlay  purposes,
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and to retire indebtedness incurred by the county for these purposes.
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(c)
  Nonsupplant  Restriction.  –  It  is  the  purpose  of  this  Article  for  counties  to  14 
appropriate funds generated under this Article to increase the level of county spending 
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for public school capital outlay purposes and community college capital outlay purposes 
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above  the  level  of  spending  before  the  levy  of  the  tax  authorized  in  this  Article.  A  
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county  that  levies  a  tax  under  this  Article  must  continue  to  spend  for  public  school  
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capital outlay purposes and community college capital outlay purposes the same amount 
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of money it would have spent for those purposes if it had not levied the tax.
" 20 
SECTION  3.    A  tax  levied  under  Article  46  of  Chapter  105  of  the  General  21 
Statutes,  as  enacted  by  this  act,  does  not  apply  to  construction  materials  purchased  to  22 
fulfill  a  lump-sum  or  unit-price  contract  entered  into  or  awarded  before  the  effective  23 
date of the levy or entered into or awarded pursuant to a bid made before the effective 24 
date  of  the  levy  when  the  construction  materials  would  otherwise  be  subject  to  the  tax  25 
levied under Article 46 of Chapter 105 of the General Statutes. 26 
SECTION 4.  This act is effective when it becomes law. 27