North Carolina § 105-164 - 14. Certain refunds authorized.

§ 105-164. 14. Certain refunds authorized.

Interstate Carriers. - An interstate carrier is allowed a refund, in accordance with this section, of part of the sales and use taxes paid by it on the purchase in this State of railway cars and locomotives, and fuel, lubricants, repair parts, accessories, service contracts, and repair, maintenance, and installation services for a motor vehicle, railroad car, locomotive, or airplane the carrier operates. An "interstate carrier" is a person who is engaged in transporting persons or property in interstate commerce for compensation. The Secretary shall prescribe the periods of time, whether monthly, quarterly, semiannually, or otherwise, with respect to which refunds may be claimed, and shall prescribe the time within which, following these periods, an application for refund may be made. A list identifying the railway cars, locomotives, fuel, lubricants, repair parts, accessories, service contracts, and repair, maintenance, and installation services purchased by the applicant inside or outside this State during the refund period. The purchase price of the taxable tangible personal property and services listed in subdivision (1) of this subsection. For purposes of this subdivision, the term "taxable" is based on the imposition of tax on the tangible personal property and services in the State. The sales and use taxes paid in this State on the listed items. The number of miles the applicant's motor vehicles, railroad cars, locomotives, and airplanes were operated both inside and outside this State during the refund period. Airplane miles are not in this State if the airplane does not depart or land in this State. Any other information required by the Secretary. Repealed by Session Laws 2010-166, s. 1.17, effective July 1, 2010. Utility Companies. - A utility company is allowed a refund, in accordance with this section, of part of the sales and use taxes paid by it on the purchase in this State of railway cars and locomotives and accessories for a railway car or locomotive the utility company operates. The Secretary shall prescribe the periods of time, whether monthly, quarterly, semiannually, or otherwise, with respect to which refunds may be claimed and shall prescribe the time within which, following these periods, an application for refund may be made. A list identifying the railway cars, locomotives, and accessories purchased by the applicant inside or outside this State during the refund period. The purchase price of the items listed in subdivision (1) of this subsection. The sales and use taxes paid in this State on the listed items. The number of miles the applicant's railway cars and locomotives were operated both inside and outside this State during the refund period. Any other information required by the Secretary. Nonprofit Entities and Hospital Drugs. - A nonprofit entity is allowed a semiannual refund of sales and use taxes paid by it under this Article on direct purchases of items for use in carrying on the work of the nonprofit entity. Sales and use tax liability indirectly incurred by a nonprofit entity through reimbursement to an authorized person of the entity for the purchase of tangible personal property and services for use in carrying on the work of the nonprofit entity is considered a direct purchase by the entity. Sales and use tax liability indirectly incurred by a nonprofit entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure that is owned or leased by the nonprofit entity and is being erected, altered, or repaired for use by the nonprofit entity for carrying on its nonprofit activities is considered a sales or use tax liability incurred on direct purchases by the nonprofit entity. The refund allowed under this subsection does not apply to purchases of electricity, telecommunications service, ancillary service, piped natural gas, video programming, or a prepaid meal plan. A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund for the first six months of a calendar year is due the following October 15; a request for a refund for the second six months of a calendar year is due the following April 15. The aggregate annual refund amount allowed an entity under this subsection for the State's fiscal year may not exceed thirty-one million seven hundred thousand dollars ($31,700,000). Hospitals not operated for profit, including hospitals and medical accommodations operated by an authority or other public hospital described in Article 2 of Chapter 131E of the General Statutes. An organization that is exempt from income tax under section 501(c)(3) of the Code, other than an organization that is properly classified in any of the following major group areas of the National Taxonomy of Exempt Entities: Community Improvement and Capacity Building. Public and Societal Benefit. Mutual and Membership Benefit. Volunteer fire departments and volunteer emergency medical services squads that are one or more of the following: Exempt from income tax under the Code. Financially accountable to a city as defined in G.S. 160A-1, a county, or a group of cities and counties. An organization that is a single member LLC that is disregarded for income tax purposes and satisfies all of the following conditions: The owner of the LLC is an organization that is exempt from income tax under section 501(c)(3) of the Code. The LLC is a nonprofit entity that would be eligible for an exemption under 501(c)(3) of the Code if it were not disregarded for income tax purposes. The LLC is not an organization that would be properly classified in any of the major group areas of the National Taxonomy of Exempt Entities listed in subdivision (2) of this subsection. Repealed by Session Laws 1999-360, s. 5, for taxes paid on or after January 1, 2008. Repealed by Session Laws 2008-107, s. 28.22(a), effective July 1, 2008, and applicable to purchases made on or after that date. Qualified retirement facilities whose property is excluded from property tax under G.S. 105-278.6A. A university affiliated nonprofit organization that procures, designs, constructs, or provides facilities to, or for use by, a constituent institution of The University of North Carolina. For purposes of this subdivision, a nonprofit organization includes an entity exempt from taxation as a disregarded entity of the nonprofit organization. Certain Governmental Entities. - A governmental entity listed in this subsection is allowed an annual refund of sales and use taxes paid by it under this Article on direct purchases of items. Sales and use tax liability indirectly incurred by a governmental entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure that is owned or leased by the governmental entity and is being erected, altered, or repaired for use by the governmental entity is considered a sales or use tax liability incurred on direct purchases by the governmental entity for the purpose of this subsection. The refund allowed under this subsection does not apply to purchases of electricity, telecommunications service, ancillary service, piped natural gas, video programming, or a prepaid meal plan. A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund is due within six months after the end of the governmental entity's fiscal year. A county. A city as defined in G.S. 160A-1. A consolidated city-county as defined in G.S. 160B-2. , (2c) Repealed by Session Laws 2005-276, s. 7.51(a), effective July 1, 2005, and applicable to sales made on or after that date. A metropolitan sewerage district or a metropolitan water district in this State. A water and sewer authority created under Chapter 162A of the General Statutes. A lake authority created by a board of county commissioners pursuant to an act of the General Assembly. A sanitary district. A regional solid waste management authority created pursuant to G.S. 153A-421. An area mental health, developmental disabilities, and substance abuse authority, other than a single-county area authority, established pursuant to Article 4 of Chapter 122C of the General Statutes. A district health department, or a public health authority created pursuant to Part 1A of Article 2 of Chapter 130A of the General Statutes. A regional council of governments created pursuant to G.S. 160A-470. A regional planning and economic development commission or a regional economic development commission created pursuant to Chapter 158 of the General Statutes. A regional planning commission created pursuant to G.S. 153A-391. A regional sports authority created pursuant to G.S. 160A-479. A public transportation authority created pursuant to Article 25 of Chapter 160A of the General Statutes. A facility authority created pursuant to Part 4 of Article 20 of Chapter 160A of the General Statutes. A regional public transportation authority created pursuant to Article 26 of Chapter 160A of the General Statutes, or a regional transportation authority created pursuant to Article 27 of Chapter 160A of the General Statutes. A local airport authority that was created pursuant to a local act of the General Assembly. A joint agency created by interlocal agreement pursuant to G.S. 160A-462 to (i) provide fire protection, emergency services, or police protection or (ii) operate a public broadcasting television station. Repealed by Session Laws 2001-474, s. 7, effective November 29, 2001. Repealed by Session Laws 2001-474, s. 7, effective November 29, 2001. A constituent institution of The University of North Carolina, but only with respect to sales and use tax paid by it for tangible personal property or services that are eligible for refund under this subsection acquired by it through the expenditure of contract and grant funds. The University of North Carolina Health Care System. A regional natural gas district created pursuant to Article 28 of Chapter 160A of the General Statutes. A special district created under Article 43 of this Chapter. A public library created pursuant to an act of the General Assembly or established pursuant to G.S. 153A-270. A soil and water conservation district organized under Chapter 139 of the General Statutes. A district confinement facility created pursuant to G.S. 153A-219, including a local act modifying G.S. 153A-219. Late Applications. - Refunds applied for more than three years after the due date are barred. Alcoholic Beverages. - The refunds authorized by this section do not apply to purchases of alcoholic beverages, as defined in G.S. 18B-101. A city subject to the provisions of G.S. 160A-340.5 is not allowed a refund of sales and use taxes paid by it under this Article for purchases related to the provision of communications service as defined in Article 16A of Chapter 160A of the General Statutes. State Agencies. - The State is allowed quarterly refunds of local sales and use taxes paid indirectly by the State agency on building materials, supplies, fixtures, and equipment that become a part of or annexed to a building or structure that is owned or leased by the State agency and is being erected, altered, or repaired for use by the State agency. This subsection does not apply to a State agency that is ineligible for a sales and use tax exemption number under G.S. 105-164.29A(a). The date the property was purchased. The type of property purchased. The project for which the property was used. If the property was purchased in this State, the county in which it was purchased. If the property was not purchased in this State, the county in which the property was used. The amount of sales and use taxes paid. through (h) Repealed by Session Laws 2010-166, s. 1.17, effective July 1, 2010. through (o) Repealed by Session Laws 2010-166, s. 1.17, effective July 1, 2010. Not an Overpayment. Taxes for which a refund is allowed under this section are not an overpayment of tax and do not accrue interest as provided in G.S. 105-241.21. An applicant for refund shall furnish the following information and any proof of the information required by the Secretary: For each applicant, the Secretary shall compute the amount to be refunded as follows. First, the Secretary shall determine the mileage ratio. The numerator of the mileage ratio is the number of miles the applicant operated all motor vehicles, railroad cars, locomotives, and airplanes in this State during the refund period. The denominator of the mileage ratio is the number of miles the applicant operated all motor vehicles, railroad cars, locomotives, and airplanes both inside and outside this State during the refund period. Second, the Secretary shall determine the applicant's proportional liability for the refund period by multiplying this mileage ratio by the purchase price of the tangible personal property and services identified in subdivision (1) of this subsection and then multiplying the resulting product by the tax rate that would have applied to the items if they had all been purchased in this State. Third, the Secretary shall refund to each applicant the excess of the amount of sales and use taxes the applicant paid in this State during the refund period on these items over the applicant's proportional liability for the refund period. An applicant for refund shall furnish the following information and any proof of the information required by the Secretary: For each applicant, the Secretary shall compute the amount to be refunded as follows. First, the Secretary shall determine the ratio of the number of miles the applicant operated its railway cars and locomotives in this State during the refund period to the number of miles it operated them both inside and outside this State during the refund period. Second, the Secretary shall determine the applicant's proportional liability for the refund period by multiplying this mileage ratio by the purchase price of the items identified in subdivision (1) of this subsection and then multiplying the resulting product by the tax rate that would have applied to the items if they had all been purchased in this State. Third, the Secretary shall refund to each applicant the excess of the amount of sales and use taxes the applicant paid in this State during the refund period on these items over the applicant's proportional liability for the refund period. The refunds allowed under this subsection do not apply to an entity that is owned and controlled by the United States or to an entity that is owned or controlled by the State and is not listed in this subsection. A hospital that is not listed in this subsection is allowed a semiannual refund of sales and use taxes paid by it on over-the-counter drugs purchased for use in carrying out its work. The following nonprofit entities are allowed a refund under this subsection: This subsection applies only to the following governmental entities: A person who pays local sales and use taxes on building materials or other tangible personal property for a State building project shall give the State agency for whose project the property was purchased a signed statement containing all of the following information: If the property was purchased in this State, the person shall attach a copy of the sales receipt to the statement. A State agency to whom a statement is submitted shall verify the accuracy of the statement. Within 15 days after the end of each calendar quarter, every State agency shall file with the Secretary a written application for a refund of taxes to which this subsection applies paid by the agency during the quarter. The application shall contain all information required by the Secretary. The Secretary shall credit the local sales and use tax refunds directly to the General Fund. History (1957, c. 1340, s. 5; 1961, c. 826, s. 2; 1963, cc. 169, 1134; 1965, c. 1006; 1967, c. 1110, s. 6; 1969, c. 1298, s. 1; 1971, cc. 89, 286; 1973, c. 476, s. 193; 1977, c. 895, s. 1; 1979, c. 47; c. 801, ss. 77, 79-82; 1983, c. 594, s. 1; c. 891, s. 13; 1983 (Reg. Sess., 1984), c. 1097, s. 7; 1985, cc. 431, 523; 1985 (Reg. Sess., 1986), c. 863, s. 5; 1987, c. 557, ss. 8, 9; c. 850, s. 16; 1987 (Reg. Sess., 1988), c. 1044, s. 5; 1989, c. 168, s. 5; c. 251; c. 780, s. 1.1; 1989 (Reg. Sess., 1990), c. 936, s. 4; 1991, c. 356, s. 1; c. 689, s. 190.1(b); 1991 (Reg. Sess., 1992), c. 814, s. 1; c. 917, s. 1; c. 1030, s. 25; 1995, c. 17, s. 8; c. 21, s. 1; c. 458, s. 7; c. 461, s. 13; c. 472, s. 1; 1995 (Reg. Sess., 1996), c. 646, s. 6; 1996, 2nd Ex. Sess., c. 18, s. 15.7(a); 1997-340, s. 1; 1997-393, s. 2; 1997-423, s. 1; 1997-426, s. 5; 1997-502, s. 3; 1998-55, ss. 16, 17; 1998-98, s. 15; 1998-212, ss. 29A.4(a), 29A.14(i), 29A.18(b); 1999-360, ss. 4, 5(a), (b), 9; 1999-438, s. 14; 2000-56, s. 9; 2000-140, s. 92.A(c); 2001-414, s. 1; 2001-474, s. 7; 2003-416, ss. 18(b)-(e), 23; 2003-431, ss. 2, 3; 2003-435, 2nd Ex. Sess., s. 4.1; 2004-110, s. 5.1; 2004-124, s. 32B.1; 2004-170, s. 21(a); 2004-204, 1st Ex. Sess., s. 3; 2005-276, ss. 7.27(a), 7.51(a), 33.12; 2005-429, s. 2.12; 2005-435, ss. 32(a), 33(a)-(c), 61, 61.1; 2006-33, s. 6; 2006-66, ss. 24.6(a), (b), (c), 24.10(b), 24.13(b), 24A.1(a); 2006-162, ss. 9, 27; 2006-168, s. 3.1; 2006-252, ss. 2.2, 2.3; 2007-323, ss. 31.10(a), 31.20(b), 31.23(d); 2007-345, s. 14.6(a); 2007-491, s. 44(1)a; 2008-107, ss. 28.22(a), 28.23(a), (b); 2008-118, s. 3.10(a); 2008-154, s. 1; 2009-233, s. 1; 2009-445, ss. 13, 14(a); 2009-527, s. 2(d); 2009-550, s. 4.1; 2010-31, s. 31.5(c), (d); 2010-91, s. 4; 2010-95, s. 4(a); 2010-166, s. 1.17; 2011-84, s. 1(b); 2011-330, s. 26(a); 2012-79, s. 2.11; 2013-316, s. 3.4(b); 2013-414, ss. 12, 42(a), 54(a); 2014-3, s. 8.2(a); 2014-20, s. 1; 2015-235, s. 1; 2016-5, s. 3.22(b); 2017-204, ss. 2.7(a), 2.9(b); 2018-5, s. 38.5( l ); 2019-169, s. 3.3(n); 2020-58, s. 3.1(a).) Local Modification. - City of Raeford: 1995, c. 16, s. 1. Cross References. - As to hospital authorities, see G.S. 131E-15 et seq. Editor's Note. - Session Laws 1999-360, s. 31 provides that s. 5 of the act, which added subsection (i) effective May 1, 1999, and amended subdivision (i)(1) effective January 1, 2004, is repealed for taxes paid on or after January 1, 2008. Session Laws 2000-56, which amended G.S. 105-164.14(i)(2) b., in s. 10(h), as amended by Session Laws 2000-140, s. 92.A(c), and Session Laws 2001-414, s. 1, amended Session Laws 2000-56, s. 10(h), which provided: "Section 9 of this act becomes effective May 1, 1999, and applies to taxes paid on or after that date. Section 9 is repealed for taxes paid on or after January 1, 2008." Session Laws 2003-435, 2nd Ex. Sess., s. 4.2, provides: "It is the intent of the General Assembly that the provisions of this part [Part 4 of Session Laws 2003-435, 2nd Ex. Sess.] not be expanded. If a court of competent jurisdiction holds any provision of this part invalid, the section containing that provision is repealed. The repeal of a section of this part under this section does not affect other provisions of this part that may be given affect without the invalid provision." Subdivision (j)(3)d. was added by Session Laws 2004-124, s. 32B.1, and included a sunset provision with a repeal date of July 1, 2009. Subdivision (j)(3)d. was subsequently amended by Session Laws 2004-204, 1st Ex. Sess., s. 3, but the amendments made by that act had no sunset provision. Subsequently, Session Laws 2005-435, s. 33(c), deleted the sunset provision for subdivision (j)(3)d. Session Laws 2004-124, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2004'." Session Laws 2004-124, s. 33.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2004-2005 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2004-2005 fiscal year." Session Laws 2004-124, s. 33.5, contains a severability clause. Session Laws 2005-276, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2005'." Session Laws 2005-276, s. 7.27(c), provides: "In addition to the report required under G.S. 105-164.14(c) , as amended by this section, the Secretary of Revenue shall make a report to the Department of Public Instruction and the Fiscal Research Division of the General Assembly within 30 days after this act becomes law of the amount of refunds, identified by taxpayer, claimed under subdivisions (2b) and (2c) of G.S. 105-164.14(c) during the 2002-2003, 2003-2004, and 2004-2005 fiscal years." Session Laws 2005-276, s. 33.34, provides in part: "For prepayments of telecommunications and direct-to-home satellite services, the first billing period is considered to start on or after November 1, 2005. For prepayments of satellite digital audio radio services or cable services, the first billing period is considered to start on or after February 1, 2006." Session Laws 2005-276, s. 46.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2005-2007 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2005-2007 fiscal biennium." Session Laws 2005-276, s. 46.5 is a severability clause. Subsection (k) as added by Session Laws 2005-435, s. 61.1 was recodified as subsection ( l ) at the direction of the Revisor of Statutes. Session Laws 2005-435, s. 62, as amended by Session Laws 2006-66, s. 24.6(c), provides that Part III of the act, which adds new subsections (a1) and (k) [recodified as ( l )] to G.S. 105-164.14 , becomes effective January 1, 2005, and applies to purchases made on or after that date. Part III of Session Laws 2005-435 does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by Part III before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal. Session Laws 2006-66, s. 24.6(c), deleted the sunset provision for G.S. 105-164.14 for purchases made on or after January 1, 2007. Session Laws 2007-323, ss. 31.20(b) and 31.23(d), each added subsections designated as subsection (n). The subsection added by s. 31.23(d) has been redesignated as subsection (o) at the direction of the Revisor of Statutes. Session Laws 2007-323, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2007'." Session Laws 2007-323, s. 32.5 is a severability clause. Session Laws 2007-491, s. 47, provides: "G.S. 105-241.10, as enacted by Section 1 of this act, and Sections 6, 15, 16, 17, and 22 are effective for taxable years beginning on or after January 1, 2007. Section 14 is effective for taxable years beginning on or after January 1, 2008. Sections 45, 46, and 47 are effective when they become law. The remainder of this act becomes effective January 1, 2008. The procedures for review of disputed tax matters enacted by this act apply to assessments of tax that are not final as of the effective date of this act and to claims for refund pending on or filed on or after the effective date of this act. This act does not affect matters for which a petition for review was filed with the Tax Review Board under G.S. 105-241.2 before the effective date of this act. The repeal of G.S. 105-122(c) and G.S. 105-130.4(t) and Sections 11 and 12 apply to requests for alternative apportionment formulas filed on or after the effective date of this act. A petition filed with the Tax Review Board for an apportionment formula before the effective date of this act is considered a request under G.S. 105-122(c1) or G.S. 105-130.4(t1) , as appropriate." Session Laws 2008-154, which added subdivision (b)(5) of this section, in s. 2, provides, in part: "Notwithstanding G.S. 105-164.14(b) , a request for a refund of sales and use tax paid for the period January 1, 2004, through December 31, 2007, is timely filed if it is submitted to the Secretary of Revenue by October 15, 2008." Session Laws 2009-445, s. 14(a), states in the introductory language that "G.S. 105-164.14(j)(2)n. reads as rewritten." The amendment has been given effect in subdivision (j)(3)n. at the direction of the Revisor of Statutes. Session Laws 2009-550, s. 4.1, amended subdivision (b)(1) contingent on Senate Bill 509, 2009 Regular Session becoming law. Senate Bill 509, 2009 Regular Session was enacted as Session Laws 2009-445. Subdivision (c)(23), as enacted by Session Laws 2010-95, s. 4(a), was redesignated as subdivision (c)(24) at the direction of the Revisor of Statutes. Session Laws 2010-95, s. 4(a), which added subdivision (c)(24), was applicable to purchases made on or after July 1, 2008. Session Laws 2010-153, s. 1, as amended by Session Laws 2011-345, s. 1, provides: "A joint agency created by an interlocal agreement pursuant to G.S. 160A-462 to operate a cable system that provides video programming services is allowed a refund of sales and use tax paid by it on purchases made on or after July 1, 2007, and before June 30, 2011, to the same extent allowed to a city under G.S. 105-164.14 (c). Notwithstanding G.S. 105-164.14 , the joint agency must make a request for a refund in writing before January 1, 2011, for sales and use tax paid on or after July 1, 2007, and before June 30, 2010." Session Laws 2010-166, s. 4, provides in part, "The first claim for refund by a taxpayer whose sales tax refund period is changed by this act is due within six months after July 1, 2010, and applies to purchases during the time period not covered by the taxpayer's last claim for refund." Session Laws 2011-84, s. 6, provides: "Any city that is designated as a public utility under Chapter 62 of the General Statutes when this act becomes law shall not be subject to the provisions of this act with respect to any of its operations that are authorized by that Chapter." Session Laws 2011-84, s. 7 is a severability clause. Session Laws 2012-74, s. 3, as amended by Session Laws 2013-360, s. 6.16, provides: "(a) For calendar year 2010, an interstate passenger air carrier that is eligible for a refund of sales and use taxes paid on fuel in excess of two million five hundred thousand dollars ($2,500,000) under G.S. 105-164.14(a1) and G.S. 105-164.14 A(a)(1) is subject to the provisions of this section, notwithstanding any provisions of G.S. 105-164.14 , G.S. 105-164.14A, or Section 4 of S.L. 2010-166 to the contrary. Notwithstanding the fact that the first six months of 2010 are subject to G.S. 105-164.14(a1) and the last six months of 2010 are subject to G.S. 105-164.14A(a)(1), a taxpayer shall submit one request for a refund for the entire calendar year. "(b) An interstate passenger air carrier is allowed a refund of the sales and use tax paid by it on fuel in excess of one million two hundred fifty thousand dollars ($1,250,000) for the period January 1, 2011, through June 30, 2011. The State portion of the refund is payable in two installments. The first installment, payable in fiscal year 2012-2013, may not exceed three million one hundred fifty thousand dollars ($3,150,000). The remainder of the refund is payable in fiscal year 2013-2014. The amount of sales and use tax paid does not include a refund allowed to the interstate passenger air carrier under G.S. 105-164.14(a) . A request for a refund must be in writing and must include any information and documentation required by the Secretary. The request for a refund is due before October 1, 2012. A refund applied for after the due date is barred." Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'" Session Laws 2013-360, s. 38.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2013-2015 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2013-2015 fiscal biennium." Session Laws 2013-360, s. 38.5 is a severability clause. Session Laws 2013-414, s. 42(b), made the amendment to subdivision (c)(24) by Session Laws 2013-414, s. 42(a), applicable to purchases occurring on or after January 1, 2013. Session Laws 2013-414, s. 54(b), made the amendment to subdivision (b)(2a) by Session Laws 2013-414, s. 54(a), applicable to purchases occurring on or after July 1, 2013. Session Laws 2014-20, s. 2, made subdivisions (c)(25) and (c)(26), as added by Session Laws 2014-20, s. 1, applicable to sales made on or after July 1, 2015. Session Laws 2015-235, s. 2, provides: "The Revenue Laws Study Committee is directed to study the application of the motor fuels tax exemption to entities that are comprised of multiple local government units. The study may include an examination of how the exemption applies to joint agencies created by interlocal agreements and regional authorities created by agreement of multiple counties." Session Laws 2015-235, s. 3, made the amendment to subdivision (c)(17) of this section by Session Laws 2015-235, s. 1, applicable to sales made on or after July 1, 2015. Session Laws 2017-204, s. 2.7(b), provides: "This section becomes effective retroactively to March 1, 2016." Session Laws 2017-204, s. 2.13, provides: "Except as otherwise provided, Sections 2.1 through 2.8 of this part become effective retroactively to January 1, 2017, and apply to sales and purchases made on or after that date. Any amendments made in Sections 2.1 through 2.8 of this part that increase sales or use tax liability are effective when this act becomes law. The remainder of this part is effective when it becomes law." Session Laws 2017-204, s. 7.1, is a severability clause. Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2020-58, s. 3.1(b), made the substitution of "purchases of items'' for "purchases of tangible personal property and services'' in the first sentence of subsections (b) and (c) by Session Laws 2020-58, s. 3.1(a), effective July 1, 2020, and applicable to purchases made on or after that date. Effect of Amendments. - Session Laws 1999-360, s. 5(b), effective January 1, 2004, and applicable to taxes paid on or after that date, deleted "and on computer systems hardware and software it capitalizes for tax purposes under the Code" from the end of the first sentence of subdivision (i)(1). For repeal of this amendment, see Editor's note. Session Laws 2000-140, s. 92.A(c), effective July 21, 2000, amended Session Laws 2000-56, s. 10(h) to provide that the amendment to this section by Session Laws 2000-140, s. 9 would be effective May 1, 1999, and would be applicable to taxes paid on or after that date. Session Laws 2001-414, s. 1, effective September 14, 2001, further amended Session Laws 2001-56, s. 10(h) to provide that s. 9 of the 2000 act is repealed for taxes paid on or after January 1, 2008. Session Laws 2003-416, ss. 18(b) through 18(e) and 23, effective August 14, 2003, in subsection (b), deleted "except under G.S. 105-164.4(a) and G.S. 105-164.4(a) (4c)" following "under this Article," inserted "and services, other than electricity and telecommunications service," and made minor punctuation changes; in the first paragraph of subsection (c), deleted "except under G.S. 105-164.4(a)(4a) and G.S. 105-164.4(a)(4c)" following "under this Article," inserted "and services, other than electricity and telecommunications service," and made minor punctuation changes; in subdivision (c)(20), inserted "or services that are eligible for refund under this subsection"; in subdivision (c)(21), substituted "Health Care System" for "Hospitals at Chapel Hill"; and in the first sentence of subsection (e), inserted "services and of." Session Laws 2003-431, s. 2, effective for taxes paid on or after July 1, 2003, in subsection (c), in the first sentence, deleted "except under G.S. 105-164.4(a) (4a) and G.S. 105-164.4(a) (4c)" following "under this Article," and added "and services, other than electricity and telecommunications service"; and inserted subdivision (c)(2c). Session Laws 2003-431, s. 3, effective July 1, 2004, and applicable to sales made on or after that date, in subsection (e), deleted "by a State agency on direct purchases of tangible personal property and local sales and use taxes paid" following "use taxes paid" in the first sentence, and deleted the last sentence which read "This subsection does not apply to purchases ...". Session Laws 2003-435, 2nd Ex. Sess., s. 4.1, effective January 1, 2004, and applicable to sales made on or after that date, added subsection (j). Session Laws 2004-110, s. 5.1, effective July 1, 2004, and applicable to sales made on or after that date, in subdivision (j)(1), inserted "qualified" in the first sentence and added the last two sentences in the first paragraph. Session Laws 2004-124, s. 32B.1, rewrote sub-subdivision (j)(2)b. and subdivision (j)(3). See editor's note for effective date and applicability. Session Laws 2004-170, s. 21.(a), effective July 1, 2004, deleted "services and of" at the end of the first paragraph of subsection (e). Session Laws 2004-204, s. 3, effective January 1, 2005, and applicable to sales made on or after that date, in subsection (j)(2), added the last sentence; and in subsection (j)(3), substituted "includes" for "does not include", and rewrote the last sentence. Session Laws 2005-276, ss. 7.27(a), 7.51(a), effective July 1, 2005, and s. 33.12, effective January 1, 2006, in subsection (a), in the first sentence, added "the purchase in this State of railway cars and locomotives, and" and deleted "purchased in this State" following "accessories" and in subdivision (a)(1), inserted "railway cars, locomotives,"; in subsection (c), in the introductory paragraph, added the last sentence; and repealed subdivisions (c)(2b) and (c)(2c). Session Laws 2005-429, s. 2.12, effective January 1, 2007, added subsection (k). Session Laws 2005-435, s. 32.(a), effective September 27, 2005, rewrote subsection (f). Session Laws 2005-435, ss. 33.(a) and 33.(b), effective August 1, 2005, and applicable to sales made on or after that date, added subdivision (j)(3)a., and redesignated former subdivision (j)(3)a. as present subdivision (j)(3)b. and designated remaining subdivisions accordingly; and added subdivision (j)(5). Session Laws 2005-435, ss. 61 and 61.1, effective January 1, 2005, added subsections (a1) and (k) because a subsection (k) had already been added by Session Laws 2005-429, s. 2.12, the subsection added by this act was redesignated as ( l ) at the direction of the Revisor of Statutes. See Editor's notes, Session Laws 2006-435, s. 62, for applicability. Session Laws 2006-33, s. 6, effective January 1, 2007, substituted "electricity, telecommunications service, and ancillary" for "electricity and telecommunications" in subsections (b) and (c). Session Laws 2006-66, s. 24.6(a) and (b), effective July 1, 2006, in subsection (a1), added the last sentence; and in subsection ( l ), added "Aviation Fuel for" preceding "Motorsports Events" and "professional" preceding "motorsports racing" and added the last sentence. Session Laws 2006-66, s. 24.10(b), effective July 1, 2007, and applicable to purchases made on or after that date, added new subsection (m). Session Laws 2006-66, s. 24.13(b), effective July 1, 2006, and applicable to purchases made on or after that date, added new subsection (a2). Session Laws 2006-66, s. 24A.1(a), effective July 1, 2006, and applicable to purchases made on or after that date, added new subsection (d1). Session Laws 2006-162, s. 9, effective July 24, 2006, substituted "subsections (a1), (g), (h), (i), (j), and (l)" for "subsections (g), (h), (i), and (j)" in the middle of subdivision (k)(1). Session Laws 2006-162, s. 27, effective July 24, 2006, deleted the former last sentence in the first paragraph of subsection (c), which read: "The Secretary shall make an annual report ot the Department of Public Instruction and the Fiscal Research Division of the General Assembly by March 1 of the amount of refunds, identified by taxpayer, claimed under subdivisions (2b) and (2c) of this subsection over the preceding year." Session Laws 2006-168, s. 3.1, effective January 1, 2005, and applicable to sales made on or after that date, substituted "For the purpose of this subsection," for "In the case of a computer manufacturing facility," at the beginning of the last sentence in subdivision (j)(2)(b); effective July 1, 2006, and applicable to purchases made on or after that date, in subdivision (j)(2), substituted "all" for "both" in the introductory paragraph and added subdivision (j)(2)(c); added subdivision (j)(3)(f); and substituted "January 1, 2013" for "January 1, 2010" at the end of subdivision (j)(5). Session Laws 2006-252, ss. 2.2 and 2.3, effective January 1, 2007, in subsection (h), inserted "or Development" in the catchline, inserted "or a development tier one area, as defined in G.S. 143B-437.08 " in the first sentence of subdivision (1), added "or if it is engaged primarily in one of the businesses listed in G.S. 105-129.83(a) in a development tier one area, as defined in G.S. 143B-437.08 " at the end of subdivision (2), and inserted "or G.S. 105-129.83(a) " at the end of the first sentence, and "or a development tier one area, as defined in G.S. 143B-437.08" in the second sentence, of subdivision (3); and in subdivision (j)(2)b, substituted "located in a development tier one area as defined in G.S. 143B-437.08" for "located in an enterprise tier one, two, or three area as defined in G.S. 105-129.3." Session Laws 2007-323, s. 31.10(a), effective July 1, 2007, and applicable to purchases made on or after July 1, 2007, in sub-subdivision (j)(3)b., inserted "of" following "assembling" and added "or of aircraft engines, blisks, fuselage sections, flight decks, flight deck systems or components, wings, fuselage fairings, fins, moving leading and trailing wing edges, wing boxes, nose sections, tailplanes, passenger doors, nacelles, thrust reversers, landing gear, braking systems, or any combination thereof" at the end. Session Laws 2007-323, s. 31.20(b), effective July 1, 2007, and applicable to purchases made on or after July 1, 2007, added the subsection designated herein as subsection (o). Session Laws 2007-323, s. 31.23(d), effective January 1, 2007, and applicable to sales made on or after January 1, 2007, added subsection (n). Session Laws 2007-345, s. 14.6(a), effective July 1, 2007, and applicable to purchases made on or after July 1, 2007, rewrote subsection (n) as added by Session Laws 2007-323, s. 31.20(b). Session Laws 2007-491, s. 44(1)a., effective January 1, 2008, substituted "G.S. 105-241.21" for "G.S. 105-241.1(i)" in subdivisions (i)(3) and (j)(4). For applicability, see Editor's note. Session Laws 2008-107, s. 28.22(a), effective July 1, 2008, and applicable to purchases made on or after that date, rewrote subdivision (b)(2); and deleted subdivision (b)(3), which read: "Churches, orphanages, and other charitable or religious institutions and organizations not operated for profit." Session Laws 2008-107, ss. 28.23(a) and (b), effective July 16, 2008, substituted "January 1, 2011" for "January 1, 2009" in the last sentence of subsections (a1) and ( l ). Session Laws 2008-118, s. 3.10(a), effective July 1, 2008, added sub-subdivisions (j)(2)d. and (j)(3)n. Session Laws 2008-154, s. 1, effective January 1, 2004, and applicable to purchases made on or after that date, added subdivision (b)(5). See Editor's note for additional applicability provisions. Session Laws 2009-233, s. 1, effective July 1, 2008, and applicable to purchases made on or after that date, added subdivision (b)(2a). Session Laws 2009-445, s. 13, effective August 7, 2009, rewrote subsection (b). Session Laws 2009-445, s. 14(a), effective July 1, 2008, and applicable to purchases made on or after that date, substituted "Solar electricity" for "Solar energy" in subdivision (j)(3)n. Session Laws 2009-527, s. 2(d), effective August 27, 2009, added subdivision (c)(23). Session Laws 2009-550, s. 4.1, effective August 28, 2009, substituted "or other public hospital described in" for "created under the Hospital Authorities Law" in subdivision (b)(1). Session Laws 2010-31, s. 31.5(c) and (d), effective June 30, 2010, in subsections (a1) and ( l ), substituted "January 1, 2013" for "January 1, 2011" in the last sentence. Session Laws 2010-91, s. 4, effective July 1, 2010, and applicable to sales made on or after that date, added subdivisions (j)(3)i. and p. Session Laws 2010-95, s. 4(a), effective July 1, 2008, and applicable to purchases made on or after that date, added subdivision (c)(24). Session Laws 2010-166, s. 1.17, effective July 1, 2010, repealed subsections (a1), (f), (g), (h), (j), (k), ( l ), (m), (n), and (o). Session Laws 2011-84, s. 1(b), effective May 21, 2011, and applicable to sales made on or after that date, added subsection (d2). Session Laws 2011-330, s. 26(a), effective June 27, 2011, added subsection (p). Session Laws 2012-79, s. 2.11, effective June 26, 2012, in subsection (a), added the last sentence in subdivision (a)(4), and, in the last paragraph, substituted "mileage ratio. The numerator of the mileage ratio is" for "ratio of", "all motor vehicles" for "its motor vehicles", and "refund period. The denominator of the mileage ratio is the number of miles the applicant operated all motor vehicles, railroad cars, locomotives, and airplanes" for "refund period to the number of miles it operated them." Session Laws 2013-316, s. 3.4(b), effective July 1, 2014, added the last sentence in the first paragraph of subsection (b). For applicability, see editor's note. Session Laws 2013-414, s. 12, effective August 23, 2013, in subsection (b), added the second sentence in the first paragraph; substituted "over-the-counter" for "medicines and" in the second sentence of the second paragraph; and added subdivision (b)(2b). Session Laws 2013-414, s. 42(a), effective January 1, 2013, added "or established pursuant to G.S. 153A-270 " at the end of subdivision (c)(24). For applicability, see editor's note. Session Laws 2013-414, s. 54(a), effective July 1, 2013, rewrote subdivision (b)(2a). For applicability, see editor's note. Session Laws 2014-3, s. 8.2(a), effective July 1, 2014, deleted "other than electricity, telecommunications service, and ancillary service," following "services" throughout subsections (b) and (c); and inserted the present third sentences in subsection (b) and (c). See Editor's note for applicability. Session Laws 2014-20, s. 1, effective July 1, 2015, added subdivisions (c)(25) and (c)(26). See Editor's note for applicability. Session Laws 2015-235, s. 1, effective July 1, 2015, inserted "(i) provide fire protection, emergency services, or police protection or (ii)" near the middle of subdivision (c)(17). For applicability, see editor's note. Session Laws 2016-5, s. 3.22(b), effective July 1, 2017, added the second sentence in the first paragraph of subsection (e). Session Laws 2017-204, s. 2.7(a), substituted "accessories, service contracts, and repair, maintenance, and installation services" for "and accessories" in the first sentence of subsection (a) and subdivision (a)(1). For effective date and applicability, see editor's notes. Session Laws 2017-204, s. 2.9(b), effective August 11, 2017, substituted "the State's fiscal year" for "a fiscal year" in the last sentence of the first paragraph in subsection (b). Session Laws 2018-5, s. 38.5( l ), effective June 12, 2018, in subdivision (a)(2), inserted "taxable" in the first sentence, and added the last sentence. Session Laws 2019-169, s. 3.3(n), effective July 26, 2019, substituted "tangible personal property and services" for "items" in the first sentence in subdivision (a)(2), and in the fourth sentence in the concluding paragraph of subsection (a); and substituted "tangible personal property" for "items" in the second sentence in subdivision (a)(2). Session Laws 2020-58, s. 3.1(a), substituted "purchases of items" for "purchases of tangible personal property and services" in the first sentence of subsections (b) and (c). For effective date and applicability, see editor's note. Legal Periodicals. - See legislative survey, 21 Campbell L. Rev. 323 (1999). For article, "Blinson V. State and the Continued Erosion of the Public Purpose Doctrine in North Carolina," see 87 N.C.L. Rev. 644 (2009).