NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 1118

HOUSE BILL 1036

 

 

AN ACT TO AMEND THE LICENSE TAX ARTICLE, BEING ARTICLE 2 OF CHAPTER 105 AND CERTAIN OTHER RELATED PROVISIONS OF THE GENERAL STATUTES OF NORTH CAROLINA.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 105-62 is hereby amended by adding a new subsection to be designated subsection (d) to read as follows: "No tax shall be levied under this Section, for the privilege of operating vending machines or the sale of any commodity through such machines, against any vending machine operator, licensed under G.S. 105-65.1 and required thereby to pay a gross receipts tax."

Sec. 2.  G.S. 105-65.1 is hereby rewritten to read as follows:

"G.S. 105-65.1.  Merchandising Dispensers and Weighing Machines. (a) Every person, firm, or corporation engaged in the business of operating, maintaining, or placing on location anywhere within the State of North Carolina merchandising dispensers in which are kept any article or merchandise to be purchased, or weighing machines, shall be deemed a distributor or operator and shall apply for and procure from the Commissioner of Revenue a State-wide license to be known as an annual distributor's or operator's license, and shall pay for such license the following tax:

Distributors or operators of 5 or more drink dispensers other than open cup drink

dispensers ......................................................................................................................... $100.00

Distributors or operators of 5 or more open cup drink dispensers ..................................... 50.00

Distributors or operators of 5 or more cigarette dispensers or dispensers of other tobacco products             50.00

Distributors or operators of 5 or more food or other merchandising dispensers selling products for five cents (5˘) or more ..................................................................................................................................... 50.00

Distributors or operators of 5 or more food or other merchandising dispensers selling products for less than five cents (5˘) ...................................................................................................................................... 25.00

Distributors or operators of 5 or more weighing machines ................................................. 50.00

A person, firm, or corporation operating and maintaining soft drink dispensers or any other dispensers as set forth above in places of business operated by him or it, and not elsewhere, shall not be considered a distributor or operator of such dispensers for the purpose of this subsection.

Any person, firm, or corporation operating, maintaining, or placing on location fewer than 5 such machines or dispensers shall not be considered a distributor or operator for the purpose of this subsection. Any person, firm, or corporation operating, maintaining, or placing on location 5 or more soft drink dispensers shall not be considered a distributor or operator for the purpose of this subsection when all of said dispensers operated, maintained, or placed on location by such person, firm, or corporation are operated, maintained, or placed in a single building, all parts of which are accessible through the same outside entrance, and which building is occupied by a single commercial, manufacturing, or industrial business. Every machine or dispenser placed on location by a licensed operator or distributor as herein defined shall have affixed thereto identification showing the name and address of the owner, operator, or distributor. The operator of any machine or dispenser not so identified shall be liable for additional license tax as levied by subsection (b) (3).

"(b)      (1)  In addition to the above annual distributor's or operator's license, every distributor or operator distributing or operating dispensers or machines designed or used for the dispensing or selling of soft drinks, other than open cup drinks, shall apply for and obtain from the Commissioner of Revenue a State-wide license for such dispensers or machines so operated, and shall pay therefor an annual soft drink dispenser tax according to the following schedule: For more than 5 and less than 50 soft drink dispensers seven dollars ($7.00) per machine.

For 51 and not over 100 soft drink dispensers ............................................................ $1,070.00

For 101 and not over 150 soft drink dispensers ............................................................ 1,785.00

For 151 and not over 200 soft drink dispensers............................................................. 2,500.00

For each 50 or fraction thereof additional soft drink dispensers over 200 ......................... 715.00

Where a distributor or operator procures a license under one of the lower tax brackets under the above schedule and adds additional soft drink dispensers during the tax year whereby license becomes due in a higher tax bracket, such licensee shall apply for additional license based upon the difference between the amount paid and the amount due in the higher bracket. Such additional license shall be applied for at the end of the month in which the additional license became due.

(2)        In addition to the above annual distributor's or operator's license, every distributor or operator distributing, maintaining, or operating 5 or more cigarette dispensers, or 5 or more dispensers of other tobacco products, or 5 or more open cup drink dispensers, or 5 or more food or other merchandising dispensers, or 5 or more weighing machines shall pay a tax upon the gross receipts obtained from such machines and dispensers at the rate of six-tenths of one per cent (6/10 of 1%) of gross receipts from cigarette sales, and one-tenth of one per cent (1/10 of 1%) of gross receipts from all other sales; but the tax paid for the operator's license shall be treated as an advance payment of the gross receipts tax and shall be applied as a credit upon the gross receipts tax, but only for the same year for which the tax was paid. All persons, firms, or corporations liable for the gross receipts tax levied hereunder shall file quarterly reports with the Commissioner of Revenue no later than the 15th day of each of the months of January, April, July and October of each year for the 3 months' period ended on the last day of the month immediately preceding the month in which the report is due. All taxes due for said period shall be paid to the Commissioner of Revenue at the time the report is required to be filed.

(3)        Every person, firm, or corporation, operating, maintaining, or placing on location any dispenser or machine described in subsection (a) and not required to procure a distributor's or operator's license under the terms of subsection (a) shall apply for and obtain from the Commissioner of Revenue a State-wide license for each such dispenser or machine, and shall pay therefor an annual tax as follows:

Cigarette dispensers or dispensers of other tobacco products ........................................ $ 5.00

Drink dispensers having a capacity in excess of 48 bottles or other dispensing units, including those bottles or other dispensing units stored in such machine or dispenser as well as those in the dispensing rack .... 15.00

Drink dispensers having a capacity not in excess of 48 bottles or other dispensing units, including those bottles or other dispensing units stored in such machine or dispenser as well as those in the dispensing rack ...... 5.00

Food or other merchandising dispensers selling products for five cents (5) or more per

unit ........................................................................................................................................ 1.00

Food or other merchandising dispensers selling products for less than five cents (5˘) per unit 0.50

Weighing machines .......................................................................................................... 2.50

Provided that the tax on food or merchandising dispensers imposed by this subdivision (3) shall not apply to dispensers dispensing peanuts only or to dispensers dispensing no commodity other than candy containing fifty per cent (50%) or more peanuts, or to penny self-service dispensers or machines twenty per cent (20%) of the gross revenue from which inures to the benefit of the visually handicapped.

(4)        The applicant for license under subsection (3) above shall, in making application for license, specify the serial number of the dispenser, or dispensers and of the weighing machine, or machines, proposed to be distributed or operated, together with a description of the merchandise or service offered for sale thereby, and the amount of deposit required by or in connection with the operation of such dispenser, or dispensers, and such machine or machines. The license shall carry the serial number to correspond with that on the application; provided, that such licenses shall not be transferable to any other dispensers except under the following conditions: If at any time during the license tax year an applicant or license holder shall elect to replace a licensed machine by a new or unlicensed machine, he may notify the Commissioner by letter, enclosing the vending license of such machine to be replaced, and giving the serial number of the replacement machine and the serial number of the machine being replaced and certifying that the machine being replaced has been withdrawn from his operation by sale or otherwise, and advising the Commissioner of the disposition of the machine being replaced. A new license will thereupon be issued for the replacement machine without the payment of further license tax for the balance of the license tax year in which the replacement occurs. It shall be the duty of the person in whose place of business the dispenser or machine is operated or located to see that the proper State license is attached in a conspicuous place on the dispenser or machine before its operation shall commence.

"(c)       If any person, firm, or corporation shall fail, neglect, or refuse to comply with the terms and provisions of this Section or shall fail to attach the proper State license to any dispenser or machine as herein provided, the Commissioner of Revenue, or his agent or deputies, shall forthwith seize and remove such dispenser or machine, and shall hold the same until the provisions of this Section have been complied with. In addition to the above provision the applicant shall be further liable for the additional tax imposed under G.S. 105-112.

"(d)      Sales of merchandise herein referred to shall be subject to the provisions of Article V of this Chapter, and the tax therein levied shall be paid by the distributor or operator of such dispensers or machines.

"(e)       Counties, cities and towns shall not levy or collect any annual distributor's or operator's occupational license levied for the distribution or operation of any of the dispensers or machines described in subsection (a), nor any per dispenser or per machine license tax for any machine or dispenser described in subsection (a) or (b) of this Section, nor upon the sale of any commodities through such machine or dispenser.

"(f)       The word 'dispenser' or 'dispensers' as used in this Section shall include any machine or mechanical device through the medium of which any of the merchandise referred to in this Section is purchased, distributed or sold.

"(g)       Neither the tax levied under subsection (b) upon dispensers, nor the tax levied under subsection (a) upon distributors or operators, shall apply to dispensers or vending machines which dispense only milk, milk drinks, products of the dairy, pure uncarbonated fruit or vegetable juices, or newspapers."

Sec. 3.  G.S. 105-79 is hereby amended by adding a new paragraph at the end of the present Section to read as follows:

"No tax shall be levied under this Section, for the privilege of operating vending machines or the sale of any commodity through such machines, against any vending machine operator, licensed under G.S. 105-65.1 and required thereby to pay a gross receipts tax."

Sec. 4.  G.S. 105-84 is hereby amended by adding a new paragraph at the end of the present Section to read as follows:

"No tax shall be levied under this Section, for the privilege of operating vending machines or the sale of any commodity through such machines, against any vending machine operator, licensed under G.S. 105-65.1 and required thereby to pay a gross receipts tax."

Sec. 5.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 6.  This Act shall become effective on July 1, 1968.

In the General Assembly read three times and ratified, this the 4th day of July, 1967.