§ 160A-215.2. (For effective date, see note) Heavy equipment gross receipts tax in lieu of property tax. - North Carolina Statutes

§ 160A‑215.2.  (Foreffective date, see note) Heavy equipment gross receipts tax in lieu ofproperty tax.

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

(1)        Heavy equipment. – Definedin G.S. 153A‑156.1.

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

(b)        Tax Authorized. – Acity may, by ordinance, impose a tax at the rate of eight tenths percent (0.8%)on the gross receipts from the short‑term lease or rental of heavyequipment by a person whose principal business is the short‑term lease orrental of heavy equipment at retail. The heavy equipment subject to this tax isexempt from property tax under G.S. 105‑275, and this tax provides analternative to a property tax on the equipment. A person is not considered tobe in the short‑term lease or rental business if the majority of theperson's lease and rental gross receipts are derived from leases and rentals toa 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 city under this section if the place of businessfrom which the heavy equipment is delivered is located in the city.

(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 city. Thetax is payable quarterly and is due by the last day of the month following theend of the quarter. The tax is intended to be added to the amount charged forthe short‑term lease or rental of heavy equipment and paid to the heavyequipment business by the person to whom the heavy equipment is leased orrented.

(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 city finance officer has the same authority asthe Secretary of Revenue in imposing these penalties and remedies.

(e)        Effective Date. – Atax imposed under this section becomes effective on the date set in theordinance 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 ordinance is adopted.

(f)         Repeal. – A citymay, by ordinance, repeal a tax imposed under this section. The repeal iseffective on the date set in the ordinance. The date must be the first day of acalendar quarter and may not be sooner than the first day of the calendarquarter that begins at least two months after the date the ordinance isadopted.  (2008‑144,s. 3; 2009‑445, s. 27(a).)