§ 105-472. Disposition and distribution of taxes collected. - North Carolina Statutes

§ 105‑472.  Dispositionand distribution of taxes collected.

(a)        County Allocation.– The Secretary shall, on a monthly basis, allocate to each taxing county forwhich the Secretary collects the tax the net proceeds of the tax collected inthat county under this Article. For the purpose of this section, "netproceeds" means the gross proceeds of the tax collected in each countyunder this Article less taxes refunded, the cost to the State of collecting andadministering the tax in the county as determined by the Secretary, and otherdeductions that may be charged to the county. If the Secretary collects localsales or use taxes in a month and the taxes cannot be identified as beingattributable to a particular taxing county, the Secretary shall allocate the taxesamong the taxing counties in proportion to the amount of taxes collected ineach county under this Article during that month and shall include them in themonthly distribution. Amounts collected by electronic funds transfer paymentsare included in the distribution for the month in which the return that appliesto the payment is received.

(b)        DistributionBetween Counties and Cities. – The Secretary shall divide the amount allocatedto each taxing county among the county and its municipalities in accordancewith the method determined by the county. The board of county commissionersshall, by resolution, choose one of the following methods of distribution:

(1)        Per Capita Method. –The net proceeds of the tax collected in a taxing county shall be distributedto that county and to the municipalities in the county on a per capita basisaccording to the total population of the taxing county, plus the totalpopulation of the municipalities in the county. In the case of a municipalitylocated in more than one county, only that part of its population living in thetaxing county is considered its "total population". In order to makethe distribution, the Secretary shall determine a per capita figure by dividingthe amount allocated to each taxing county by the total population of thatcounty plus the total population of all municipalities in the county. TheSecretary shall then multiply this per capita figure by the population of thetaxing county and by the population of each municipality in the county; each respectiveproduct shall be the amount to be distributed to the county and to eachmunicipality in the county. To determine the population of each county and eachmunicipality, the Secretary shall use the most recent annual estimate ofpopulation certified by the State Budget Officer.

(2)        Ad Valorem Method. –The net proceeds of the tax collected in a taxing county shall be distributedto that county and the municipalities in the county in proportion to the totalamount of ad valorem taxes levied by each on property having a tax situs in thetaxing county during the fiscal year next preceding the distribution. Forpurposes of this section, the amount of the ad valorem taxes levied by a countyor municipality includes ad valorem taxes levied by the county or municipalityin behalf of a taxing district and collected by the county or municipality. Inaddition, the amount of taxes levied by a county includes ad valorem taxeslevied by a merged school administrative unit described in G.S. 115C‑513in the part of the unit located in the county. In computing the amount of taxproceeds to be distributed to each county and municipality, the amount of anyad valorem taxes levied but not substantially collected shall be ignored. Eachcounty and municipality receiving a distribution of the proceeds of the taxlevied under this Article shall in turn immediately share the proceeds witheach district in behalf of which the county or municipality levied ad valoremtaxes in the proportion that the district levy bears to the total levy of thecounty or municipality. Any county or municipality that fails to provide theDepartment of Revenue with information concerning ad valorem taxes levied by itadequate to permit a timely determination of its appropriate share of taxproceeds collected under this Article may be excluded by the Secretary fromeach monthly distribution with respect to which the information was notprovided in a timely manner, and those tax proceeds shall then be distributedonly to the remaining counties or municipalities, as appropriate. For thepurpose of computing the distribution of the tax under this subsection to anycounty and the municipalities located in the county for any month with respectto which the property valuation of a public service company is the subject ofan appeal and the Department of Revenue is restrained by law from certifyingthe valuation to the county and the municipalities in the county, theDepartment shall use the last property valuation of the public service companythat has been certified.

The board of countycommissioners in each taxing county shall, by resolution adopted during themonth of April of each year, determine which of the two foregoing methods ofdistribution shall be in effect in the county during the next succeeding fiscalyear. In order for the resolution to be effective, a certified copy of it mustbe delivered to the Secretary in Raleigh within 15 calendar days after itsadoption. If the board fails to adopt a resolution choosing a method ofdistribution not then in effect in the county, or if a certified copy of theresolution is not timely delivered to the Secretary, the method of distributionthen in effect in the county shall continue in effect for the following fiscalyear. The method of distribution in effect on the first of July of each fiscalyear shall apply to every distribution made during that fiscal year.

(b1)      Repealed by SessionLaws 2008‑134, s. 14(b), effective July 28, 2008.

(c)        MunicipalityDefined. – As used in this Article, the term "municipality" means"city" as defined in G.S. 153A‑1.

(d)        No municipality mayreceive any funds under this section if it was incorporated with an effectivedate of on or after January 1, 2000, and is disqualified from receiving fundsunder G.S. 136‑41.2. No municipality may receive any funds under thissection, incorporated with an effective date on or after January 1, 2000,unless a majority of the mileage of its streets are open to the public. Theprevious sentence becomes effective with respect to distribution of funds on orafter July 1, 1999.  (1971, c. 77, s. 2; 1973, c. 476, s. 193; c. 752; 1979, c. 12, s. 1;1979, 2nd Sess., c. 1137, s. 49; 1981, c. 4, s. 2; 1985 (Reg. Sess., 1986), c.934, s. 2; 1991, c. 325, s. 8; 1993, c. 485, s. 24; 1999‑458, s. 6; 2001‑427,s. 13(a); 2001‑487, s. 118(b); 2002‑72, s. 5; 2003‑349, s. 5;2004‑203, s. 5(j); 2007‑323, s. 31.16.3(d); 2008‑134, s.14(b).)