North Carolina § 160A-206 - General power to impose taxes.

§ 160A-206. General power to impose taxes.

Authority. - A city shall have power to impose taxes only as specifically authorized by act of the General Assembly. Except when the statute authorizing a tax provides for penalties and interest, the power to impose a tax shall include the power to impose reasonable penalties for failure to declare tax liability, if required, or to impose penalties or interest for failure to pay taxes lawfully due within the time prescribed by law or ordinance. In determining the liability of any taxpayer for a tax, a city may not employ an agent who is compensated in whole or in part by the city for services rendered on a contingent basis or any other basis related to the amount of tax, interest, or penalty assessed against or collected from the taxpayer. The power to impose a tax shall also include the power to provide for its administration in a manner not inconsistent with the statute authorizing the tax. Prohibition. - A city may not impose a license, franchise, or privilege tax on a person engaged in any of the businesses listed in this subsection. These businesses are subject to sales tax at the combined general rate for which the city receives a share of the tax revenue or they are subject to the local sales tax: Supplying piped natural gas. Providing telecommunications service taxed under G.S. 105-164.4(a)(4c). Providing video programming taxed under G.S. 105-164.4(a)(6). Providing electricity. History (1971, c. 698, s. 1; 2012-152, s. 5; 2012-194, s. 61.5(b); 2015-6, s. 2.18(a); 2015-109, s. 1.) Editor's Note. - Session Laws 2012-152, s. 6, as amended by Session Laws 2012-194, s. 61.5(b), and as amended by Session Laws 2015-109, s. 1, provides in part: "Sections 2, 4, and 5 of this act become effective July 1, 2013. After July 1, 2013, cities and counties shall not renew any contingency fee-based contracts for these services. After July 1, 2013, cities and counties shall not assign further audits on a contingency fee basis to an auditing firm under a contract that meets all the following conditions: (i) the contract would have been prohibited under this act had the contract been entered into after July 1, 2013, and (ii) the contract allows the assignment of audits on a discretionary basis." Session Laws 2012-189, ss. 1 and 2, provide: "SECTION 1. The Revenue Laws Study Committee may study whether municipalities should be granted the authority to levy a local option sales tax for the purpose of providing dedicated funding for beach nourishment and other natural resources preservation and report its findings, together with any recommended legislation, to the 2013 Regular Session of the General Assembly upon its convening. "SECTION 2. The Revenue Laws Study Committee may study the taxation and valuation of leasehold interests in exempt real property and report its findings, together with any recommended legislation, to the 2013 Regular Session of the General Assembly upon its convening." Session Laws 2016-103, s. 9(c), provides: "A city may not impose a fee or charge on businesses listed in G.S. 160A-206(b) for activities conducted in the city's right-of-way, except fees or charges not exceeding those in effect as of June 1, 2016, or payments under agreements subject to G.S. 62-350 ." Session Laws 2016-103, s. 9(d), provides: "Subsection (c) of this section is effective when it becomes law [July 22, 2016] and is repealed effective July 1, 2017." Effect of Amendments. - Session Laws 2012-152, s. 5, added the third sentence. For effective date and applicability, see editor's note. Session Laws 2015-6, s. 2.18(a), effective April 9, 2015, designated the existing language as subsection (a); added the subsection (a) heading; and added subsection (b). Legal Periodicals. - For article, "Searching Everywhere for a Section 24(1)(A) Standard: City of Asheville, Town of Boone, and the Unclear Future of Local-State Relations in North Carolina,” see 96 N.C.L. Rev. 1882 (2018).