North Carolina § 105-449 - 97. Deductions and discounts allowed a supplier when filing a return.

§ 105-449. 97. Deductions and discounts allowed a supplier when filing a return.

Taxes Not Remitted. - When a supplier files a return, the supplier may deduct from the amount of tax payable with the return the amount of tax any of the following licensees owes the supplier but failed to remit to the supplier: A licensed distributor. A licensed importer that removed the motor fuel on which the tax is due from a terminal of an elective or a permissive supplier. Repealed by Session Laws 1995, c. 647, s. 32. Administrative Discount. - A supplier that files a timely return and sends a timely payment may deduct from the amount of tax payable with the return an administrative discount of one-tenth of one percent (0.1%) of the amount of tax payable to this State as the trustee, not to exceed eight thousand dollars ($8,000) a month. The discount covers expenses incurred in collecting taxes on motor fuel. Percentage Discount. - A supplier that sells motor fuel directly to an unlicensed distributor or to the bulk end-user, the retailer, or the user of the fuel may take the same percentage discount on the fuel that a licensed distributor may take under G.S. 105-449.93(b) when making deferred payments of tax to the supplier. Taxes Paid on Exempt Retail Sales. - When filing a return, a supplier that issues or authorizes the issuance of an exempt card or code to a person that enables the person to buy motor fuel without paying tax on the fuel may deduct the amount of excise tax imposed on fuel purchased with the exempt card or code. The amount of excise tax imposed on fuel purchased with an exempt card or code is the amount that was imposed on the fuel when it was delivered to the retailer of the fuel. A supplier is not liable for tax a licensee listed in this subsection owes the supplier but fails to pay. If a listed licensee pays tax owed to a supplier after the supplier deducts the amount on a return, the supplier must promptly remit the payment to the Secretary. History (1995, c. 390, s. 3; 1995 (Reg. Sess., 1996), c. 647, ss. 31, 32; 1997-60, s. 15; 1999-438, s. 23; 2000-173, s. 14(c); 2006-162, s. 14(f); 2008-134, s. 42; 2017-204, s. 4.5(i).) Editor's Note. - Session Laws 2006-162, s. 33, provides, in part, that: "An exempt card or code will not be valid for sales of motor fuel at the terminal rack on or after January 1, 2007." Session Laws 2017-204, s. 4.9, provides in part: "The remainder of this part is effective when it becomes law [August 11, 2017] and applies to requests for review filed on or after that date and to requests for review pending on that date for which the Department reissues a request for additional information, allows the taxpayer time to respond by the requested response date, and provides notification to the taxpayer that failure to timely respond to the request will result in the request for review being subject to the provisions of G.S. 105-241.13 A." Session Laws 2017-204, s. 7.1, is a severability clause. Effect of Amendments. - Session Laws 2006-162, s. 14(f), effective January 1, 2007, and applicable to motor fuel purchased on or after that date, in subsection (d), deleted "an exempt access" before "code to a person," "at retail" following "buy motor fuel" and "retail" before "card or code" at the end of the first sentence and in the second sentence deleted "at retail" after "fuel purchased" and "retail" after "with an exempt." Session Laws 2008-134, s. 42, effective January 1, 2009, substituted "bulk end-user" for "bulk-end user" in subsection (c). Session Laws 2017-204, s. 4.5(i), effective August 11, 2017, in subsection (a), substituted "licensees" for "license holders" in the introductory language, and substituted substituted "licensee" for "license holder" in the closing paragraph. For applicability, see editor's note.