North Carolina § 105-449 - 107. Annual refunds for off-highway use and use by certain vehicles with power attachments.

§ 105-449. 107. Annual refunds for off-highway use and use by certain vehicles with power attachments.

Off-Highway. - A person who purchases and uses motor fuel for a purpose other than to operate a licensed highway vehicle may receive an annual refund for the excise tax the person paid on fuel used during the preceding calendar year. The amount of refund allowed is the tax rate in effect under G.S. 105-449.80 for the time period less the amount of sales and use tax due on the fuel under this Chapter. An application for a refund allowed under this section must be made in accordance with this Part. Certain Vehicles. - A person who purchases and uses motor fuel in one of the vehicles listed below may receive an annual refund for the amount of fuel consumed by the vehicle: A concrete mixing vehicle. A solid waste compacting vehicle. A bulk feed vehicle that delivers feed to poultry or livestock and uses a power takeoff to unload the feed. A vehicle that delivers lime or fertilizer in bulk to farms and uses a power takeoff to unload the lime or fertilizer. A tank wagon that delivers alternative fuel, as defined in G.S. 105-449.130, or motor fuel or another type of liquid fuel into storage tanks and uses a power takeoff to make the delivery. A commercial vehicle that delivers and spreads mulch, soils, composts, sand, sawdust, and similar materials and that uses a power takeoff to unload, blow, and spread the materials. A commercial vehicle that uses a power takeoff to remove and dispose of septage and for which an annual fee is required to be paid to the Department of Environmental Quality under G.S. 130A-291.1. A sweeper. Sales Tax Amount. - Article 5 of Subchapter I of this Chapter determines the amount of State sales and use tax to be deducted under this section from a motor fuel excise tax refund. Articles 39, 40, and 42 of Subchapter VIII of this Chapter and the Mecklenburg First 1% Sales Tax Act determine the amount of local sales and use tax to be deducted under this section from a motor fuel excise tax refund. The cents-per-gallon cost of motor fuel used to calculate the amount of State and local sales and use tax deducted from a claim for refund for each taxable period equals the average of the United States city average price of finished motor gasoline and No. 2 diesel fuel for resale in the "Consumer Price Index Detailed Reports" published by the Bureau of Labor Statistics of the United States Department of Labor or data determined by the Secretary to be equivalent. The average is computed by weighting the cost of finished motor gasoline and No. 2 diesel fuel by the proportion of tax collected on each under this Article for the taxable period, rounding to the nearest one-tenth of a cent (1/10›). If the cents-per-gallon cost is exactly between two-tenths of a cent (2/10›), the average is rounded up to the higher of the two. The amount of refund allowed is thirty-three and one-third percent (33 1 / 3 %) of the tax rate in effect under G.S. 105-449.80 for the time period for which the refund is claimed less the amount of sales and use tax due on the fuel under this Chapter. An application for a refund allowed under this section must be made in accordance with this Part. This refund is allowed for the amount of fuel consumed by the vehicle in its mixing, compacting, or unloading operations, as distinguished from propelling the vehicle, which amount is considered to be one-third of the amount of fuel consumed by the vehicle. History (1995, c. 390, s. 3; 1997-6, s. 14; 1997-423, s. 4; 2001-408, s. 1; 2005-377, s. 1; 2006-162, s. 16(b); 2014-3, s. 9.10(b); 2015-2, ss. 2.2(b), 2.3; 2015-6, s. 2.25; 2015-241, s. 14.30(u); 2016-5, ss. 4.9(a), 4.10(c).) Editor's Note. - Session Laws 2015-6, s. 2.25, effective April 9, 2015, repealed Session Laws 2015-2, s. 2.3, which would have amended subsection (c) of this section, effective January 1, 2016. Effect of Amendments. - Session Laws 2005-377, s. 1, effective September 8, 2005, and applicable to motor fuel and alternative fuel consumed on or after January 1, 2006, added subdivisions (b)(7) and (b)(8). Session Laws 2006-162, s. 16(b), effective July 24, 2006, inserted "or privilege tax" near the end of the second sentence in subsection (a) and at the end of the first sentence of the undesignated paragraph in subsection (b), and added the second sentence of subsection (c). Session Laws 2014-3, s. 9.10(b), effective May 29, 2014, deleted "or privilege tax" preceding "due on the fuel" in the second sentence of subsection (a) and in the first sentence of the last paragraph of subsection (b); and rewrote the first and second sentences in subsection (c). Session Laws 2015-2, s. 2.2(b), effective January 1, 2016, deleted the former last sentence in subsection (c), which read: "The sales price and the cost price of motor fuel to be used in determining the amount to deduct is the average of the wholesale prices used under G.S. 105-449.80 to determine the excise tax rates in effect for the two six-month periods of the year for which the refund is claimed." Session Laws 2015-241, s. 14.30(u), effective July 1, 2015, substituted "Department of Environmental Quality" for "Department of Environment and Natural Resources" in subdivision (b)(7). Session Laws 2016-5, s. 4.9(a), effective January 1, 2016, added the last three sentences in subsection (c). Session Laws 2016-5, s. 4.10(c), effective January 1, 2016, substituted "the tax rate in effect under G.S. 105-449.80 for the time period" for "the amount of the flat cents-per-gallon rate in effect during the year for which the refund is claimed plus the average of the two variable cents-per-gallon rates in effect during that year" in the second sentence of subsection (a); and substituted "the tax rate in effect under G.S. 105-449.80 for the time period for which the refund is claimed" for "the following: the sum of the flat cents-per-gallon rate in effect during the year for which the refund is claimed and the average of the two variable cents-per-gallon rates in effect during that year" in the last paragraph of subsection (b).