Bill Summary – FastDemocracy

FILED SENATE
                                                                                            Apr 6, 2021
                           GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                  S.B. 584
                                       SESSION 2021           PRINCIPAL CLERK
     S                                                                     D
                                SENATE BILL DRS45314-MCf-142
     Short Title:    Reinstate Merchant's Discount.                                                (Public)
     Sponsors:       Senator Burgin (Primary Sponsor).
     Referred to:
                                      A BILL TO BE ENTITLED
 AN ACT TO REINSTATE A MERCHANT'S DISCOUNT.
 The General Assembly of North Carolina enacts:
              SECTION 1. G.S. 105-164.21 is reenacted and reads as rewritten:
 "§ 105-164.21. Merchant's discount.
     (a)      Amount. – Except as provided in subsection (b) of this section, a retailer who pays
 the retail sales and use tax imposed by this Article may deduct from the amount of the tax paid a
 discount of one three percent (1%), (3%), not to exceed five hundred thousand dollars
 ($500.00).($5,000).
     (b)      Restrictions. – The Secretary may deny a retailer the benefit of this section for failure
 to pay the full tax when due as well as in cases of fraud, evasion, or failure to keep accurate and
 clear records as required by this Article. In order to receive the discount provided in this section,
 a retailer must deduct the discount when it remits the tax to the Department. A retailer who sells
 the following services may not deduct the discount provided in this section on sales of those
 services:
              (1)     Electricity.
              (2)     Piped natural gas.
              (3)     Telecommunications.
              (4)     Video programming."
              SECTION 2.(a) G.S. 105-474 reads as rewritten:
 "§ 105-474. Definitions; construction of Article; remedies and penalties.
     The definitions set forth in Article 5 of Subchapter I of this Chapter shall apply to this Article
 insofar as such definitions are not inconsistent with the provisions of this Article, and all other
 provisions of Articles 5 and 9 of Subchapter I of this Chapter as the same relate to the North
 Carolina Sales and Use Tax Act shall be applicable to this Article unless such provisions are
 inconsistent with the provisions of this Article. The administrative interpretations made by the
 Secretary of Revenue with respect to the North Carolina Sales and Use Tax Act, to the extent not
 inconsistent with the provisions of this Article, may be uniformly applied in the construction and
 interpretation of this Article. It is the intention of this Article that the provisions of this Article
 and the provisions of the North Carolina Sales and Use Tax Act, insofar as practicable, shall be
 harmonized.
     The provisions with respect to remedies and penalties applicable to the North Carolina Sales
 and Use Tax Act, as contained in Articles 5 and 9 of Subchapter I of this Chapter, shall be
 applicable in like manner to the tax authorized to be levied and collected under this Article, to
 the extent that the same are not inconsistent with the provisions of this Article. The merchant's
 discount provided in G.S. 105-164.21 does not apply to this Article."
                                   *DRS45314-MCf-142*
     General Assembly Of North Carolina                                                       Session 2021
              SECTION 2.(b) G.S. 105-187.5(d) reads as rewritten:
     "(d) Administration. – The Division shall notify the Secretary of Revenue of a retailer who
 makes the election under this section. A retailer who makes this election shall report and remit
 to the Secretary the tax on the gross receipts of the limited possession commitment of the motor
 vehicle. The Secretary shall administer the tax imposed by this section on gross receipts in the
 same manner as the tax levied under G.S. 105-164.4(a)(2). The administrative provisions and
 powers of the Secretary that apply to the tax levied under G.S. 105-164.4(a)(2) apply to the tax
 imposed by this section. In addition, the The merchant's discount provided in G.S. 105-164.21
 does not apply to this section.
     The Division may request the Secretary to audit a retailer who elects to pay tax on gross
 receipts under this section. When the Secretary conducts an audit at the request of the Division,
 the Division shall reimburse the Secretary for the cost of the audit, as determined by the
 Secretary. In conducting an audit of a retailer under this section, the Secretary may audit any
 sales of motor vehicles made by the retailer."
              SECTION 2.(c) G.S. 105-187.17 reads as rewritten:
 "§ 105-187.17. Administration.
     (a)      Retail Sale or Use. – The privilege tax this Article imposes on a tire retailer who sells
 new tires at retail is an additional State sales tax and the excise tax this Article imposes on the
 storage, use, or consumption of a new tire in this State is an additional State use tax. Except as
 otherwise provided in this Article, these taxes shall be collected and administered in the same
 manner as the State sales and use taxes imposed by Article 5 of this Chapter. As under Article 5
 of this Chapter, the additional State sales tax paid when a new tire is sold is a credit against the
 additional State use tax imposed on the storage, use, or consumption of the same tire.
     (b)      Wholesale Sale or Use. – The privilege tax this Article imposes on a tire retailer and
 on a tire wholesale merchant who sell new tires for placement in this State on a vehicle offered
 for sale, lease, or rental is a tax on the wholesale sale of the tires. This tax and the excise tax this
 Article imposes on a new tire purchased for placement in this State on a vehicle offered for sale,
 lease, or rental shall, to the extent practical, be collected and administered as if they were
 additional State sales and use taxes. The privilege tax paid when a new tire is sold for placement
 on a vehicle offered for sale, lease, or rental is a credit against the use tax imposed on the purchase
 of the same tire for placement in this State on a vehicle offered for sale, lease, or rental.
     (c)      Discount. – The merchant's discount provided in G.S. 105-164.21 does not apply to
 this Article."
              SECTION 2.(d) G.S. 105-187.22 reads as rewritten:
 "§ 105-187.22. Administration.
     The privilege tax this Article imposes on a white goods retailer is an additional State sales
 tax and the excise tax this Article imposes on the storage, use, or consumption of a new white
 good in this State is an additional State use tax. Except as otherwise provided in this Article,
 these taxes shall be collected and administered in the same manner as the State sales and use
 taxes imposed by Article 5 of this Chapter. As under Article 5 of this Chapter, the additional
 State sales tax paid when a new white good is sold at retail is a credit against the additional State
 use tax imposed on the storage, use, or consumption of the same white good. The merchant's
 discount provided in G.S. 105-164.21 does not apply to this Article."
              SECTION 2.(e) G.S. 105-187.32 reads as rewritten:
 "§ 105-187.32. Administration.
     The privilege tax this Article imposes on a dry-cleaning solvent retailer is an additional State
 sales tax, and the excise tax this Article imposes on the storage, use, or consumption of
 dry-cleaning solvent by a dry-cleaning facility in this State is an additional State use tax. Except
 as otherwise provided in this Article these taxes shall be collected and administered in the same
 manner as the State sales and use taxes imposed by Article 5 of this Chapter. The merchant's
 discount provided in G.S. 105-164.21 does not apply to this Article. As under Article 5 of this
     Page 2                                                                          DRS45314-MCf-142
     General Assembly Of North Carolina                                                    Session 2021
 Chapter, the additional State sales tax paid when dry-cleaning solvent is sold at retail is a credit
 against the additional State use tax imposed on the storage, use, or consumption of the same
 dry-cleaning solvent."
             SECTION 2.(f) G.S. 105-187.52(a) reads as rewritten:
     "(a) Administration. – The privilege taxes imposed by this Article are in lieu of the State
 use tax. Except as otherwise provided in this Article, the collection and administration of these
 taxes is the same as the State use tax imposed by Article 5 of this Chapter. The merchant's
 discount provided in G.S. 105-164.21 does not apply to this Article."
             SECTION 3. This act becomes effective July 1, 2021, and applies to returns filed on
 or after that date.
     DRS45314-MCf-142                                                                             Page 3
Statutes affected: 
Filed: 105-164.21, 105-474, 105-187.5, 105-187.17, 105-187.22, 105-187.32, 105-187.52
Edition 1: 105-164.21, 105-474, 105-187.5, 105-187.17, 105-187.22, 105-187.32, 105-187.52