§ 153A-156.1. (For effective date, see note) Heavy equipment gross receipts tax in lieu of property tax. - North Carolina Statutes

§ 153A‑156.1.  (Foreffective date, see note) Heavy equipment gross receipts tax in lieu ofproperty tax.

(a)        Definitions. – Thefollowing definitions apply in this section:

(1)        Heavy equipment. – Earthmoving,construction, or industrial equipment that is mobile, weighs at least 1,500pounds, and meets any of the descriptions listed in this subdivision. The termincludes an attachment for heavy equipment, regardless of the weight of theattachment.

a.         It is a self‑propelledvehicle that is not designed to be driven on a highway.

b.         It is industriallift equipment, industrial material handling equipment, industrial electricalgeneration equipment, or a similar piece of industrial equipment.

(2)        Short‑termlease or rental. – Defined in G.S. 105‑187.1.

(b)        Tax Authorized. – Acounty may, by resolution, impose a tax at the rate of one and two‑tenthspercent (1.2%) on the gross receipts from the short‑term lease or rentalof heavy equipment by a person whose principal business is the short‑termlease or rental of heavy equipment at retail. The heavy equipment subject tothis tax is exempt from property tax under G.S. 105‑275, and this taxprovides an alternative to a property tax on the equipment. A person is notconsidered to be in the short‑term lease or rental business if themajority of the person's lease and rental gross receipts are derived fromleases and rentals to a person who is a related person under G.S. 105‑163.010.

The tax authorized by thissection applies to gross receipts that are subject to tax under G.S. 105‑164.4(a)(2).Gross receipts from the short‑term lease or rental of heavy equipment aresubject to a tax imposed by a county under this section if the place ofbusiness from which the heavy equipment is delivered is located in the county.

(c)        Payment. – A personwhose principal business is the short‑term lease or rental of heavyequipment is required to remit a tax imposed by this section to the countyfinance officer. The tax is payable quarterly and is due by the last day of themonth following the end of the quarter. The tax is intended to be added to theamount charged for the short‑term lease or rental of heavy equipment andpaid to the heavy equipment business by the person to whom the heavy equipmentis leased or rented.

(d)        Enforcement. – Thepenalties and collection remedies that apply to the payment of sales and usetaxes under Article 5 of Chapter 105 of the General Statutes apply to a taximposed under this section. The county finance officer has the same authorityas the Secretary of Revenue in imposing these penalties and remedies.

(e)        Effective Date. – Atax imposed under this section becomes effective on the date set in theresolution imposing the tax. The date must be the first day of a calendarquarter and may not be sooner than the first day of the calendar quarter thatbegins at least two months after the date the resolution is adopted.

(f)         Repeal. – A countymay, by resolution, repeal a tax imposed under this section. The repeal iseffective on the date set in the resolution. The date must be the first day ofa calendar quarter and may not be sooner than the first day of the calendarquarter that begins at least two months after the date the resolution isadopted.  (2008‑144,s. 2.)