H.B. 441
GENERAL ASSEMBLY OF NORTH CAROLINA
Mar 29, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30214-SVf-15
Short Title: Require Ad Valorem LOST Distrib./Carteret. (Local)
Sponsors: Representative McElraft.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REQUIRE CARTERET COUNTY TO USE THE AD VALOREM METHOD OF
3 DISTRIBUTION FOR LOCAL SALES AND USE TAX.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. This act applies only to Carteret County.
6 SECTION 2. G.S. 105-472 reads as rewritten:
7 "§ 105-472. Disposition and distribution of taxes collected.
8 …
9 (b) Distribution Between Counties and Cities. – The Secretary shall divide the amount
10 allocated to each taxing county among the county and its municipalities in accordance with the
11 method determined by the county. The board of county commissioners shall, by resolution,
12 choose one of the following methods of distribution:
13 (1) Per Capita Method. – The net proceeds of the tax collected in a taxing county
14 shall be distributed to that county and to the municipalities in the county on a
15 per capita basis according to the total population of the taxing county, plus the
16 total population of the municipalities in the county. In the case of a
17 municipality located in more than one county, only that part of its population
18 living in the taxing county is considered its "total population". In order to
19 make the distribution, the Secretary shall determine a per capita figure by
20 dividing the amount allocated to each taxing county by the total population of
21 that county plus the total population of all municipalities in the county. The
22 Secretary shall then multiply this per capita figure by the population of the
23 taxing county and by the population of each municipality in the county; each
24 respective product shall be the amount to be distributed to the county and to
25 each municipality in the county. To determine the population of each county
26 and each municipality, the Secretary shall use the most recent annual estimate
27 of population certified by the State Budget Officer.
28 (2) Ad Valorem Method.this subsection. The net proceeds of the tax collected in
29 a taxing county shall be distributed to that county and the municipalities in the
30 county in proportion to the total amount of ad valorem taxes levied by each
31 on property having a tax situs in the taxing county during the fiscal year next
32 preceding the distribution. For purposes of this section, the amount of the ad
33 valorem taxes levied by a county or municipality includes ad valorem taxes
34 levied by the county or municipality in behalf of a taxing district and collected
35 by the county or municipality. In addition, the amount of taxes levied by a
36 county includes ad valorem taxes levied by a merged school administrative
*DRH30214-SVf-15*
 General Assembly Of North Carolina Session 2021
1 unit described in G.S. 115C-513 in the part of the unit located in the county.
2 In computing the amount of tax proceeds to be distributed to each county and
3 municipality, the amount of any ad valorem taxes levied but not substantially
4 collected shall be ignored. Each county and municipality receiving a
5 distribution of the proceeds of the tax levied under this Article shall in turn
6 immediately share the proceeds with each district in behalf of which the
7 county or municipality levied ad valorem taxes in the proportion that the
8 district levy bears to the total levy of the county or municipality. Any county
9 or municipality that fails to provide the Department of Revenue with
10 information concerning ad valorem taxes levied by it adequate to permit a
11 timely determination of its appropriate share of tax proceeds collected under
12 this Article may be excluded by the Secretary from each monthly distribution
13 with respect to which the information was not provided in a timely manner,
14 and those tax proceeds shall then be distributed only to the remaining counties
15 or municipalities, as appropriate. For the purpose of computing the
16 distribution of the tax under this subsection to any county and the
17 municipalities located in the county for any month with respect to which the
18 property valuation of a public service company is the subject of an appeal and
19 the Department of Revenue is restrained by law from certifying the valuation
20 to the county and the municipalities in the county, the Department shall use
21 the last property valuation of the public service company that has been
22 certified.
23 The board of county commissioners in each taxing county shall, by resolution adopted during
24 the month of April of each year, determine which of the two foregoing methods of distribution
25 shall be in effect in the county during the next succeeding fiscal year. In order for the resolution
26 to be effective, a certified copy of it must be delivered to the Secretary in Raleigh within 15
27 calendar days after its adoption. If the board fails to adopt a resolution choosing a method of
28 distribution not then in effect in the county, or if a certified copy of the resolution is not timely
29 delivered to the Secretary, the method of distribution then in effect in the county shall continue
30 in effect for the following fiscal year. The This method of distribution in effect on the first of
31 July of each fiscal year shall apply applies to every distribution made during that fiscal year.
32 …."
33 SECTION 3. This act is effective when it becomes law.
Page 2 DRH30214-SVf-15


Statutes affected:
Filed: 105-472
Edition 1: 105-472