§ 105-449.97. Deductions and discounts allowed a supplier when filing a return. - North Carolina Statutes

§ 105‑449.97. Deductions and discounts allowed a supplier when filing a return.

(a)        Taxes Not Remitted.– When a supplier files a return, the supplier may deduct from the amount oftax payable with the return the amount of tax any of the following licenseholders owes the supplier but failed to remit to the supplier:

(1)        A licenseddistributor.

(2)        A licensed importerthat removed the motor fuel on which the tax is due from a terminal of anelective or a permissive supplier.

(3)        Repealed by SessionLaws 1995, c. 647, s. 32.

A supplier is not liable fortax a license holder listed in this subsection owes the supplier but fails topay. If a listed license holder pays tax owed to a supplier after the supplierdeducts the amount on a return, the supplier must promptly remit the payment tothe Secretary.

(b)        AdministrativeDiscount. – A supplier that files a timely return and sends a timely paymentmay deduct from the amount of tax payable with the return an administrativediscount of one‑tenth of one percent (0.1%) of the amount of tax payableto this State as the trustee, not to exceed eight thousand dollars ($8,000) amonth. The discount covers expenses incurred in collecting taxes on motor fuel.

(c)        (Effective untilJanuary 1, 2009) Percentage Discount. – A supplier that sells motor fueldirectly to an unlicensed distributor or to the bulk‑end user, theretailer, or the user of the fuel may take the same percentage discount on thefuel that a licensed distributor may take under G.S. 105‑449.93(b) whenmaking deferred payments of tax to the supplier.

(c)        (EffectiveJanuary 1, 2009) Percentage Discount. – A supplier that sells motor fueldirectly to an unlicensed distributor or to the bulk end‑user, theretailer, or the user of the fuel may take the same percentage discount on thefuel that a licensed distributor may take under G.S. 105‑449.93(b) whenmaking deferred payments of tax to the supplier.

(d)        Taxes Paid onExempt Retail Sales. – When filing a return, a supplier that issues orauthorizes the issuance of an exempt card or code to a person that enables theperson to buy motor fuel without paying tax on the fuel may deduct the amountof excise tax imposed on fuel purchased with the exempt card or code. Theamount of excise tax imposed on fuel purchased with an exempt card or code isthe amount that was imposed on the fuel when it was delivered to the retailerof the fuel.  (1995,c. 390, s. 3; 1995 (Reg. Sess., 1996), c. 647, ss. 31, 32; 1997‑60, s.15; 1999‑438, s. 23; 2000‑173, s. 14(c); 2006‑162, s. 14(f); 2008‑134,s. 42.)