§ 105-116. Franchise or privilege tax on electric power, water, and sewerage companies. - North Carolina Statutes

§ 105‑116.  Franchise orprivilege tax on electric power, water, and sewerage companies.

(a)        Tax. – An annualfranchise or privilege tax is imposed on the following:

(1)        An electric powercompany engaged in the business of furnishing electricity, electric lights,current, or power.

(2),       (2a) Repealed bySession Laws 1998‑22, s. 2, effective July 1, 1999.

(3)        A water companyengaged in owning or operating a water system subject to regulation by theNorth Carolina Utilities Commission.

(4)        A public sewerage companyengaged in owning or operating a public sewerage system.

The tax on an electric powercompany is three and twenty‑two hundredths percent (3.22%) of thecompany's taxable gross receipts from the business of furnishing electricity,electric lights, current, or power. The tax on a water company is four percent(4%) of the company's taxable gross receipts from owning or operating a watersystem subject to regulation by the North Carolina Utilities Commission. Thetax on a public sewerage company is six percent (6%) of the company's taxablegross receipts from owning or operating a public sewerage company. A company'staxable gross receipts are its gross receipts from business inside the Stateless the amount of gross receipts from sales reported under subdivision (b)(2).A company that engages in more than one business taxed under this section shallpay tax on each business.

(b)        Report and Payment.– The tax imposed by this section is payable quarterly or monthly as specifiedin this subsection. A return is due quarterly.

A water company or publicsewerage company must pay tax quarterly when filing a return. An electric powercompany must pay tax in accordance with the schedule and requirements thatapply to payments of sales and use tax under G.S. 105‑164.16 and mustfile a return quarterly.

A quarterly return covers acalendar quarter and is due by the last day of the month that follows thequarter covered by the return. A taxpayer must submit a return on a formprovided by the Secretary. The return must include the taxpayer's grossreceipts from all property it owned or operated during the reporting period inconnection with its business taxed under this section. A taxpayer must reportits gross receipts on an accrual basis. A return must contain the followinginformation:

(1)        The taxpayer's grossreceipts for the reporting period from business inside and outside this State,stated separately.

(2)        The taxpayer's grossreceipts from commodities or services described in subsection (a) that are soldto a vendee subject to the tax levied by this section or to a joint agencyestablished under Chapter 159B of the General Statutes or a city having anownership share in a project established under that Chapter.

(3)        The amount of andprice paid by the taxpayer for commodities or services described in subsection(a) that are purchased from others engaged in business in this State and thename of each vendor.

(4)        For an electricpower company the entity's gross receipts from the sale within each city of thecommodities and services described in subsection (a).

(c)        Repealed by SessionLaws 1998‑22, s. 2, effective July 1, 1999.

(d)        Distribution. – Partof the taxes imposed by this section on electric power companies is distributedto cities under G.S. 105‑116.1. If a taxpayer's return does not state thetaxpayer's taxable gross receipts derived within a city, the Secretary mustdetermine a practical method of allocating part of the taxpayer's taxable grossreceipts to the city.

(e)        Local Tax. – Solong as there is a distribution to cities from the tax imposed by this section,no city shall impose or collect any greater franchise, privilege or licensetaxes, in the aggregate, on the businesses taxed under this section, than wasimposed and collected on or before January 1, 1947.

(e1)      An electric powercompany engaged in the business of furnishing electricity, electric lights,current, or power that collects the annual franchise or privilege tax pursuantto subsection (a) of this section and remits the tax collected to the Secretaryshall not be subject to any additional franchise or privilege tax imposed uponit by any city or county.

(f)         Repealed bySession Laws 1998‑22, s. 2, effective July 1, 1999. (1939, c. 158, s. 203; 1949,c. 392, s. 2; 1951, c. 643, s. 3; 1955, c. 1313, s. 2; 1957, c. 1340, s. 3;1959, c. 1259, s. 3; 1963, c. 1169, s. 1; 1965, c. 517; 1967, c. 519, ss. 1, 3;c. 1272, ss. 1, 3; 1971, c. 298, s. 1; c. 833, s. 1; 1973, c. 476, s. 193; c.537, s. 3; c. 1287, s. 3; c. 1349; 1975, c. 812; 1983 (Reg. Sess., 1984), c.1097, ss. 2, 16; 1987 (Reg. Sess., 1988), c. 882, s. 4.4; 1989 (Reg. Sess.,1990), c. 813, s. 3; c. 814, s. 10; c. 945, ss. 3, 17; 1991, c. 598, s. 4; c.689, s. 28(c); 1991 (Reg. Sess., 1992), c. 1007, s. 2; 1993, c. 321, s. 26(h);1997‑118, s. 2; 1997‑426, s. 3; 1998‑22, s. 2; 1998‑98,s. 72; 1998‑217, s. 32(a); 2000‑140, s. 62; 2001‑427, s.6(c), (d); 2002‑72, s. 10; 2002‑120, s. 8; 2006‑33, s. 10;2006‑162, s. 31.)