UNC
SCHOOL OF GOVERNMENT
The Daily Bulletin: Monday, August 18, 2014
PUBLIC/HOUSE BILLS
H 189 (2013-2014) VARIOUS TAX LAW AND FILM GRANT CHANGES. Filed Feb 28 2013, A BILL TO BE ENTITLED
AN ACT TO ALLOW DURHAM, ORANGE, FORSYTH, GUILFORD, MECKLENBURG, AND WAKE COUNTIES TO RETAIN
A LOCAL SALES AND USE TAX CAP OF TWO AND THREE-QUARTERS PERCENT IF A MAJORITY OF VOTERS IN THOSE
COUNTIES APPROVE THE LEVY OF A ONE-OUARTER PERCENT TAX IN A REFERENDUM HELD BY THE END OF 2016;
TO EXPAND THE MAXIMUM GRANT ALLOWED FORA TELEVISION OR VIDEO SERIES; TO CLARIFY THAT A
FARMER'S INCOME FROM FARMING OPERATIONS FOR THE PURPOSE OF THE SALES AND USE TAX EXEMPTION IS
GROSS SALES AND ALL
О
TILER INCOME FROM FARMING OPERA TIONS; AND TO MAKE
О
TIIER TECHNICAL
CHANGES TO THE REVENUE LAWS
New conference report makes the following changes to the 4th edition:
Changes the short and long titles.
Deletes all of the provisions of the previous edition in their entirety.
Provides that if H 1224 becomes law, then GS 105-506.4(b)(3), as enacted by H 1224, will amend the conditions for
permit ting the specified county's sales and use tax rate to exceed 2
1/2
percent, providingthat the county must have
conducted one or more advisory referendums on or before December 3 1, 2016 (was, December 3 1, 2014), in which a
majority of the voters approved the levy of a local sales and use tax rate of
1/4
percent under Article 46 of GS Chapter
105.
Provides that if H 1224 becomes law, then GS l05-537(e)(2), as enacted by H 1224, will amend the conditions for
permittingthe specified county's sales and use tax rate to exceed 2
1/2
percent, providingthat the county must have
conducted one or more advisory referendums on or before December 3 1, 2016 (was, December 31, 2014), in which a
majority of the voters approved the levy of a local sales and use tax rate of
1/4
percent under Article 46 of GS Chapter
105.
Makes a clarify ing change to GS 143B-437.02A(a)(2), concerning the Film and Entertainment Grant Fund (Fund),
providingthat the grants awarded from the Fund cannot exceed $5 million for a single episode of a television or video
series (previously, could not exceed S5 million fora television or video series). Effective January 1, 2015.
Amends GS 105-164. 13E, Exemption for Farmers, adding clarifying language that provides that for the purpose of this
section, the term "income from farming operations" is to be considered to mean sales plus any other amounts treated
as gross income under the Tax Code from farming operations. Provides that a qualifying farmer is a person with an
annual income from farming operations for the preceding taxable year of $10,000 or more or who has an average annual
income from farming operations for the three preceding taxable years of $10,000 or more.
Amends GS 105-153.4, concerningNC taxable income, making technical corrections to statutory references. Clarifies
apportioning of partnership income to multiple states. Makes other clarifying changes. Effective on or after January 1,
2014.
Amends GS 105-153.5. adding a provision that requires S Corporations subject to Part 1A, partnerships, and estates
and trusts subject to Part 3 to add back state income tax deducted from federal income for state income tax purposes.
Effective on or after January 1, 2014.
Deletes language in GS 105-164.13(62) that excluded the tax exemption from applyingto an item used to maintain or
