North Carolina § 105-164 - 15A. Effective date of tax changes.

§ 105-164. 15A. Effective date of tax changes.

General Rate Items. -. The effective date of a tax change for items taxable under this Article is administered as follows: For a taxable item that is provided and billed on a monthly or other periodic basis: A new tax or a tax rate increase applies to the first billing period that is at least 30 days after enactment and that starts on or after the effective date. A tax repeal or a tax rate decrease applies to bills rendered on or after the effective date. For a taxable item that is not billed on a monthly or other periodic basis, a tax change applies to amounts received for items provided on or after the effective date, except amounts received for items purchased to fulfill a real property contract for a capital improvement entered into or awarded before the effective date or entered into or awarded pursuant to a bid made before the effective date. Combined General Rate Items. - The effective date of a rate change for an item that is taxable under this Article at the combined general rate is administered as follows: For a taxable item that is not billed on a monthly or other periodic basis, a tax change applies to amounts received for items provided on or after the effective date of a change in the State general rate of tax set in G.S. 105-164.4. For a taxable item that is provided and billed on a monthly or other periodic basis: A tax increase applies to the first billing period that is at least 30 days after enactment and that starts on or after the effective date. A tax rate decrease applies to bills rendered on or after the effective date. For an increase in the authorization for local sales and use taxes, the date on which local sales and use taxes authorized by Subchapter VIII of this Chapter for every county become effective in the first county or group of counties to levy the authorized taxes. For a repeal in the authorization for local sales and use taxes, the effective date of the repeal. History (2005-276, s. 33.13; 2006-162, s. 10; 2007-323, s. 31.17(c); 2009-451, s. 27A.3( l ); 2011-330, s. 27; 2013-316, s. 3.2(c); 2016-92, s. 2.6; 2017-204, s. 2.4(d); 2018-5, s. 38.5(m); 2019-169, s. 3.3(o).) Editor's Note. - 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. 33.34, made this section effective October 1, 2005. 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. 46.5 is a severability clause. 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. Effect of Amendments. - Session Laws 2006-162, s. 10, effective July 24, 2006, added the second and third sentences in subdivision (1). Session Laws 2007-323, s. 31.17(c), effective July 1, 2007, added "and items taxed at combined general rate" at the end of the section heading; designated the existing provisions as subsection (a); added "Services" at the beginning of subsection (a); and added subsection (b). Session Laws 2009-451, s. 27A.3( l ), effective August 7, 2009, in the section heading, substituted "tax changes on" for "rate changes for"; in the introductory language of subsection (a), substituted "tax change" for "rate change"; and rewrote subdivisions (a)(1) and (a)(2). Session Laws 2011-330, s. 27, effective June 27, 2011, in subdivision (a)(1)a., inserted "that is at least 30 days after enactment and" and deleted the former last two sentences, which read: "For a service billed after it is provided, the first billing period starts on the effective date. For a service billed before it is provided, the first billing period starts on the first day of the month after the effective date." Session Laws 2013-316, s. 3.2(c), effective January 1, 2014, rewrote the section heading, which formerly read "Effective date of tax changes on services and items taxed at combined general rate"; in subsection (a), substituted "General Rate Items" for "Services" in the subsection heading, and substituted "tangible personal property, digital property, or services" for "a service" in the introductory language; substituted "a taxable item" for "a service" in subdivisions (a)(1) and (a)(2); and substituted "items" for "services" twice in subdivision (a)(2). For applicability, see editor's note. Session Laws 2016-92, s. 2.6, effective July 11, 2016, in subsection (b), substituted "administered as follows" for "the effective date of any of the following" at the end of the introductory language, substituted "For a taxable item that is not billed on a monthly or other periodic basis, a tax change applies to amounts received for items provided on or after the" for "The" at the beginning of subdivision (1), and added subdivision (1a). Session Laws 2017-204, s. 2.4(d), substituted "purchased to fulfill a real property contract for a capital improvement" for "provided under a lump-sum or unit-price contract" in subdivision (a)(2). For effective date and applicability, see editor's note. Session Laws 2018-5, s. 38.5(m), effective June 12, 2018, inserted "General" in the heading for subsection (b). Session Laws 2019-169, s. 3.3(o), effective July 26, 2019, substituted "items" for "tangible personal property, digital property, or services" in the introductory paragraph of subsection (a).