H.B. 1039
GENERAL ASSEMBLY OF NORTH CAROLINA
May 2, 2024
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40597-NIf-170
Short Title: Restore LEA Sales Tax Benefit. (Public)
Sponsors: Representative Lofton.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO RESTORE THE SALES TAX REFUND AUTHORIZED FOR LOCAL SCHOOL
3 ADMINISTRATIVE UNITS.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. Subdivision (2b) of subsection (c) of G.S. 105-164.14 is reenacted as
6 it existed immediately before its repeal.
7 SECTION 2. Subdivision (2c) of subsection (c) of G.S. 105-164.14 is reenacted as
8 it existed immediately before its repeal.
9 SECTION 3. G.S. 105-467(b) reads as rewritten:
10 "(b) Exemptions and Refunds. – The State exemptions and exclusions contained in Article
11 5 of Subchapter I of this Chapter, except for the exemption for food in G.S. 105-164.13B, apply
12 to the local sales and use tax authorized to be levied and imposed under this Article. The State
13 refund provisions contained in G.S. 105-164.14 and G.S. 105-164.14A apply to the local sales
14 and use tax authorized to be levied and imposed under this Article. A refund of an excessive or
15 erroneous State sales tax collection allowed under G.S. 105-164.11 and a refund of State sales
16 tax paid on a rescinded sale or cancelled service contract under G.S. 105-164.11A apply to the
17 local sales and use tax authorized to be levied and imposed under this Article. The aggregate
18 annual local refund amount allowed an entity under G.S. 105-164.14(b) for the State's fiscal year
19 may not exceed thirteen million three hundred thousand dollars ($13,300,000). A
20 Except as provided in this subsection, a taxing county may not allow an exemption, exclusion,
21 or refund that is not allowed under the State sales and use tax. A local school administrative unit
22 and a joint agency created by interlocal agreement among local school administrative units
23 pursuant to G.S. 160A-462 to jointly purchase food service-related materials, supplies, and
24 equipment on their behalf is allowed an annual refund of sales and use taxes paid by it under this
25 Article on direct purchases of tangible personal property and services. Sales and use tax liability
26 indirectly incurred by the entity as part of a real property contract for real property that is owned
27 or leased by the entity and is a capital improvement for use by the entity is considered a sales or
28 use tax liability incurred on direct purchases by the entity for the purpose of this subsection. The
29 refund allowed under this subsection does not apply to purchases of electricity,
30 telecommunications service, ancillary service, piped natural gas, video programming, or a
31 prepaid meal plan. A request for a refund is due in the same time and manner as provided in
32 G.S. 105-164.14(c). Refunds applied for more than three years after the due date are barred."
33 SECTION 4. Effective July 1, 2024, G.S. 105-164.44H is repealed, and the Director
34 of the Budget shall adjust the budget of the State Public School Fund accordingly.
35 SECTION 5. There is appropriated from the General Fund to the State Public School
36 Fund a recurring amount equal to the amount of the adjustment in Section 4 of this act.
*DRH40597-NIf-170*
 General Assembly Of North Carolina Session 2023
1 SECTION 6. Except as otherwise provided, this act becomes effective July 1, 2024,
2 and applies to sales made on or after that date.
Page 2 DRH40597-NIf-170


Statutes affected:
Filed: 105-467, 105-164.44H
Edition 1: 105-467, 105-164.44H