§ 105-241. Where and how taxes payable; tax period; liens. - North Carolina Statutes

§ 105‑241.  Where andhow taxes payable; tax period; liens.

(a)        Form of Payment. – Taxesare payable in the national currency. The Secretary shall prescribe where taxesare to be paid and whether taxes must be paid in cash, by check, by electronicfunds transfer, or by another method.

(b)        Electronic FundsTransfer. – Payment by electronic funds transfer is required as provided inthis subsection.

(1)        Corporate estimatedtaxes. – A corporation that is required under the Code to pay its federal‑estimatedcorporate income tax by electronic funds transfer must pay its State‑estimatedcorporate income tax by electronic funds transfer as provided in G.S. 105‑163.40.

(2)        Prepayment taxes. – Ataxpayer that is required to prepay tax under G.S. 105‑116 or G.S. 105‑164.16must pay the tax by electronic funds transfer.

(2a)      Motor fuel taxes. – Ataxpayer that is required to file an electronic return under Article 36C orArticle 36D of this Chapter must pay the tax by electronic funds transfer.

(3)        Large tax payments.– Except as otherwise provided in this subsection, the Secretary shall notrequire a taxpayer to pay a tax by electronic funds transfer unless, during theapplicable period for that tax, the average amount of the taxpayer's requiredpayments of the tax was at least twenty thousand dollars ($20,000) a month. Thetwenty thousand dollar ($20,000) threshold applies separately to each tax. Theapplicable period for a tax is a 12‑month period, designated by theSecretary, preceding the imposition or review of the payment requirement. Therequirement that a taxpayer pay a tax by electronic funds transfer remains ineffect until suspended by the Secretary. Every 12 months after requiring ataxpayer to pay a tax by electronic funds transfer, the Secretary must determinewhether, during the applicable period for that tax, the average amount of thetaxpayer's required payments of the tax was at least twenty thousand dollars($20,000) a month. If it was not, the Secretary must suspend the requirementthat the taxpayer pay the tax by electronic funds transfer and must notify thetaxpayer in writing that the requirement has been suspended.

(c)        Tax Period. – Exceptas otherwise provided in this Chapter, taxes are levied for the fiscal year ofthe state in which they became due.

(d)        Lien. – Thissubsection applies except when another Article of this Chapter containscontrary provisions with respect to a lien for a tax levied in that Article.The lien of a tax attaches to all real and personal property of a taxpayer onthe date a tax owed by the taxpayer becomes due. The lien continues until thetax and any interest, penalty, and costs associated with the tax are paid. Atax lien is not extinguished by the sale of the taxpayer's property. A taxlien, however, is not enforceable against a bona fide purchaser for value orthe holder of a duly recorded lien unless:

(1)        In the case of realproperty, a certificate of tax liability or a judgment was first docketed inthe office of the clerk of superior court of the county in which the realproperty is located.

(2)        In the case ofpersonal property, there has already been a levy on the property under anexecution or a tax warrant.

The priority of these claims andliens is determined by the date and time of recording, docketing, levy, or bonafide purchase.

If a taxpayer executes anassignment for the benefit of creditors or if insolvency proceedings areinstituted against a taxpayer who owes a tax, the tax lien attaches to all realand personal property of the taxpayer as of the date and time the taxpayerexecutes the assignment for the benefit of creditors or the date and time theinsolvency proceedings are instituted. In these cases, the tax lien is subjectonly to a prior recorded specific lien and the reasonable costs ofadministering the assignment or the insolvency proceedings. (1939, c. 158, s. 912; 1949,c. 392, s. 6; 1957, c. 1340, s. 5; 1993, c. 450, s. 2; 1999‑389, s. 8;2001‑427, s. 6(b); 2005‑435, s. 2; 2007‑527, s. 31.)