NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 759

SENATE BILL 478

 

 

AN ACT TO AMEND CHAPTER 18 OF THE GENERAL STATUTES OF NORTH CAROLINA RELATING TO THE COLLECTION OF TAXES ON MALT BEVERAGES AND WINES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Amend G.S. 18-81 by striking out the words "Manufacturers and bottlers" in the second paragraph of subsection (a) and (al), and by substituting in lieu thereof the following: "Wholesale distributors and importers".

Sec. 2.  Rewrite subsection (b) of G.S. 18-81 to read as follows:

"(b)      Each licensed wholesale distributor and importer of beverages enumerated in subsection (1) of G.S. 18-64 shall pay the excise tax levied by this Article on said beverages on or before the fifteenth day of the month following the calendar month in which they are first sold or disposed of within this State by said wholesale distributor and importer."

Sec. 3.  Rewrite subsection (c) of G.S. 18-81 to read as follows:

"(c)       Each of the licensees responsible for the payment of the excise tax levied by this Article shall, on or before the fifteenth of each month, file a report, verified on forms provided by the Commissioner of Revenue, showing, for the preceding calendar month, the exact quantities of beverages, enumerated in subsection (1) of G.S. 18-64, by size and type of container:

(1)        Constituting his beginning and ending inventory for the month;

(2)        Shipped to him from inside this State and received by him in this State;

(3)        Shipped to him from outside this State and received by him in this State;

(4)        Sold or disposed of by him in this State;

(5)        Sold by him in this State to Army, Navy, Air Force and Coast Guard Services of the United States and their organized personnel separately indicating those sales or transactions of beverages enumerated in subsection (1) of G.S. 18-64 to which the excise tax is not applicable;

(6)        Sold or disposed of by him to persons outside this State, separately indicating those sales or transactions of beverages enumerated in subsection (1) of G.S. 18-64 to which the excise tax is not applicable.

The report, on forms prescribed by the Commissioner of Revenue, shall also show the amount of excise tax payable, after allowance for all proper deductions, for all such beverages sold or disposed of by him in this State, and shall include such additional information as the Commissioner of Revenue may require for the proper administration of this Article. Payment of the excise tax levied by this Article in the amount disclosed by the report, shall accompany the report, and shall be paid to the Commissioner of Revenue. Each wholesale distributor and importer required to file a return shall keep complete and accurate books, papers, invoices and other records as may be necessary to substantiate the accuracy of his report and the amount of excise tax due, and shall retain such records for a period of three years, subject to the use and inspection of the Commissioner of Revenue or his agents."

Sec. 4.  Rewrite subsection (d) of G.S. 18-81 to read as follows:

"(d)      Any person required by this Section to retain books, papers, invoices and other records, who fails to produce same upon demand by the Commissioner of Revenue or his agent, unless such nonproduction is due to providential or other causes beyond his control, shall be guilty of a misdemeanor, and upon conviction thereof, shall be fined or imprisoned in the discretion of the court."

Sec. 5.  Rewrite subsection (e) of G.S. 18-81 to read as follows:

"(e)       Each manufacturer, nonresident wholesaler, and foreign wholesaler licensed by the North Carolina Commissioner of Revenue to sell and /or deliver any of the beverages enumerated in subsection (1) of G.S. 18-64 in North Carolina, at the time it sells and /or delivers such beverages to a licensed North Carolina wholesale distributor or importer shall furnish to each such wholesale distributor or importer a sales ticket or invoice in duplicate, and a third copy to the Commissioner of Revenue, with the following information written thereon:

(1)        The name and address of the manufacturer, nonresident wholesaler, or foreign wholesaler making the delivery and /or sale;

(2)        The name, address and license number of the wholesale distributor or importer receiving the shipment, and /or making the purchase;

(3)        The exact number of barrels, kegs or cases delivered and/or purchased, specifying the size and type of container."

Sec. 6.  Rewrite subsection (f) of G.S. 18-81 to read as follows:

"(f)       Each manufacturer, nonresident wholesaler or foreign wholesaler licensed by the Commissioner of Revenue to sell and/or deliver beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99 in North Carolina shall prepare and file a monthly report, verified on forms provided by the Commissioner of Revenue, showing the exact number of barrels, kegs or cases, specifying the size and type of container, of such beverages sold to licensed wholesale distributors or importers during the previous calendar month. This report must be filed with the Commissioner of Revenue on or before the fifteenth day of each calendar month following the month during which the sales are made. Each manufacturer, nonresident wholesaler or foreign wholesaler shall retain copies of such sales records for a period of three years, subject to the use and inspection of the Commissioner of Revenue or his agents."

Sec. 7.  Rewrite subsection (g) of G.S. 18-81 to read as follows:

"(g)       Persons operating boats, dining cars, buffet cars or club cars upon or in which malt beverages are sold, shall keep such records of the sales of such beverages in this State as the Commissioner of Revenue shall prescribe and shall submit monthly reports of such sales to the Commissioner of Revenue upon a form prescribed therefor by the Commissioner of Revenue, and shall pay the excise tax levied under this Article at the time such reports are filed."

Sec. 8.  Rewrite subsection (h) of G.S. 18-81 to read as follows:

"(h)       On the total excise tax due upon the sale of beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99, levied by this Article, the Commissioner of Revenue shall allow a discount of two per cent (2%). Said discount shall constitute compensation allowed by the State of North Carolina to wholesale distributors and importers for spoilage and breakage and for expenses incurred in the preparation of monthly reports and the maintenance of books, papers and invoices and bond required by this Article. Provided that no compensation or refund shall be made for tax-paid beverages given as free goods or advertising."

Sec. 9.  Rewrite subsection (i) of G.S. 18-81 to read as follows:

"(i)        In addition to the allowance of a discount on the excise tax due from wholesale distributors or importers, as provided in subsection (h) of this Section, the wholesale distributor or importer shall not be required to pay the excise tax on any beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99, destroyed or spoiled or otherwise rendered unsalable in a major disaster, upon adequate proof of same. For the purposes of this subsection a major disaster shall be defined as the destruction, spoilage or unsalability of 50 or more cases, or their equivalent, of beverages described in subsection (1) of G.S. 18-64 or of 25 or more cases, or their equivalent, of beverages described in subsection (2) of G.S. 18-64, and G.S. 18-96 and G.S. 18-99."

Sec. 10.  Rewrite subsection (j) of G.S. 18-81 to read as follows:

"(j)       The Commissioner of Revenue shall promulgate rules and regulations to relieve resident manufacturers, wholesale distributors and importers from the liability of paying the excise tax levied and imposed on beverages enumerated in subsection (1) of G.S. 18-64 which are intended to be sold and are thereafter sold to Army, Navy, Air Force and Coast Guard Services of the United States and their organized personnel in this State or which are intended to be shipped and are thereafter shipped out of this State by such resident manufacturers, wholesale distributors or importers for resale outside of this State or which are intended for use or consumption by or on ocean-going vessels which ply the high seas in interstate or foreign commerce in the transport of freight and /or passengers for hire exclusively, when delivered to an officer or agent of such vessel for use by or on such vessel.

"(jj)      Each manufacturer or bottler manufacturing beverages within or outside the State of North Carolina which are intended to be sold and are thereafter sold to the Army, Navy, Air Force, Coast Guard Services, or any other military establishment in North Carolina, shall identify such beverages by placing on the label, crown, can end or kegs the phrase 'For Military Use Only', any and all laws, regulations, and requirements to the contrary notwithstanding. Provided that all other beverages described in G.S. 18-64 (1) intended for sale in North Carolina shall bear no special identification other than proprietary crowns, lids or stamps."

Sec. 11.  Rewrite subsection (k) of G.S. 18-81 to read as follows:

"(k)      If the excise tax levied and imposed in this Section shall not be paid when due by the wholesale distributor or importer responsible therefor, there shall be added to the amount of the tax as a penalty, a sum equivalent to ten per cent (10%) thereof, and in addition thereto interest on the tax and penalty at the rate of one-half of one per cent (1/2 of 1%) per month or fraction of a month from the date the tax became due until paid. Nothing herein contained shall be construed to relieve any licensee otherwise liable from liability for payment of the excise tax."

Sec. 12.  Amend G.S. 18-81 by striking out subsection (l) and (m).

Sec. 13.  Amend subsection (n) of G.S. 18-81 by renumbering same as subsection (1).

Sec. 14.  Amend subsection (o) of G.S. 18-81 by striking out the second and third paragraphs of said subsection and by renumbering said subsection as subsection (m).

Sec. 15.  Amend subsection (p) of G.S. 18-81 by renumbering same as subsection (n).

Sec. 16.  Amend G.S. 18-81 by striking out subsection (q).

Sec. 17.  Amend subsection (r) of G.S. 18-81 by renumbering same as subsection (o) and by rewriting same to read as follows:

"(o)      In addition to the license taxes herein levied, a tax is hereby levied upon the sale of beverages described in G.S. 18-64, subsection (2) at the rate of sixty cents (604) per gallon.

"Each licensed wholesale distributor and importer of beverages enumerated in subsection (2) of G.S. 18-64 shall pay the excise tax levied by this Article on said beverages on or before the fifteenth day of the month following the calendar month in which they are first sold or disposed of within the State by said licensed wholesale distributor or importer. The provisions of subsection (c) through (1) inclusive, of this Section, shall also be applicable to the control of the sale of beverages enumerated in G.S. 18-64, subsection (2), G.S. 18-96 and G.S. 18-99."

Sec. 18.  Amend G.S. 18-81 by striking out subsection (s).

Sec. 19.  Amend G.S. 18-81, subsection (t) by renumbering same as subsection (p) and in line 3 by changing the letter (r) to the letter (0).

Sec. 20.  Amend G.S. 18-81 by adding the following at the end thereof:

"(q)      Each nonresident manufacturer, nonresident wholesaler, and foreign wholesaler of beverages enumerated in subsection (1) of G.S. 18-64 of this Article, then licensed by the Commissioner of Revenue to sell and/or deliver such beverages in North Carolina shall, if required by the Commissioner of Revenue, on or before January 15, 1968, make an advance lump sum excise tax payment, in cash or equivalent, to the Commissioner of Revenue, in an amount equal to each such nonresident manufacturer's, nonresident wholesaler's and foreign wholesaler's highest two months' tax liability for tax crowns, lids and stamps during the twelvemonth period ending June 30, 1967. Each such advance lump sum excise tax payment shall be credited to the account of such nonresident manufacturer, nonresident wholesaler and foreign wholesaler by the Commissioner of Revenue, and, beginning on the first day of January 1969, and on the first day of each month thereafter, a refund in the amount of one twelfth of each advance lump sum excise tax payment shall be made by the Commissioner of Revenue to such nonresident manufacturer, nonresident wholesaler, or foreign wholesaler, until the total amount of such refunds equals the total amount of such advance lump sum excise tax payment.

"(r)       As of the close of business on December 31, 1967, each nonresident manufacturer, nonresident wholesaler and foreign wholesaler then licensed by the Commissioner of Revenue to sell and/or deliver in North Carolina the beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99 shall take an inventory of all North Carolina tax-paid crowns, lids and stamps, affixed and unaffixed, in his possession and control and shall submit the results of such inventory to the North Carolina Commissioner of Revenue no later than January 15, 1968, verified on forms provided by the Commissioner.

"Upon receipt of each such verified inventory, the Commissioner of Revenue shall satisfy himself as to the accuracy of each such inventory and shall determine the total amount of tax payment represented thereby.

"(s)       Each nonresident manufacturer, nonresident wholesaler and foreign wholesaler in possession of unaffixed tax-paid stamps as of the close of business on December 31, 1967, shall surrender such tax paid stamps to the Commissioner of Revenue within 60 days thereafter and shall claim refund therefor.

"(t)       Each nonresident manufacturer, nonresident wholesaler and foreign wholesaler may claim refunds on his monthly report due on or before January 15, 1968, for the full amount of the tax paid by the affixation, before the effective date of this Act, of stamps, crowns or lids to the original containers of beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99, which containers are still in his possession and control on the effective date of this Act. The Commissioner of Revenue shall provide for a refund in the amount of the tax paid:

"(1)      for said stamps, crowns and lids affixed before the effective date of this Act to containers in the possession and control of such manufacturer or wholesaler on such effective date;

"(2)      for tax stamps returned unused to the Commissioner within 60 days after the effective date of this Act; and

"(3)      for tax crowns and lids as to which the nonresident manufacturer, nonresident wholesaler or foreign wholesaler has submitted satisfactory proof to the Commissioner, on or before January 15, 1968, that said tax crowns and lids were in his possession as unused inventory on the effective date of this Act.

"The total of the refunds provided for in this subsection shall be credited to the account of said nonresident manufacturer, nonresident wholesaler or foreign wholesaler in the same manner as that provided in subsection (q) of this Section and shall be refunded to said nonresident manufacturer nonresident wholesaler or foreign wholesaler in the same manner and in accordance with the schedule set forth in that subsection.

"Each nonresident manufacturer, nonresident wholesaler and foreign wholesaler shall, after determination of the amount of refund due him for his crown and lid inventory on the effective date of this Act, thereafter be permitted to use the crowns and lids constituting that inventory on the beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99, solely as closures, without such use indicating payment of the North Carolina excise tax.

"(u)       As of the close of business on December 31, 1967, each wholesale distributor and importer licensed to sell beverages enumerated in G.S.

18-64, G.S. 18-96 and G.S. 18-99 shall take an inventory of all such beverages in his possession and control having tax-paid crowns, lids and stamps affixed thereto and shall submit, verified on forms provided by the Commissioner, the results of such verified inventory to the Commissioner of Revenue no later than January 15, 1968. Upon receipt of each such verified inventory, the Commissioner of Revenue shall satisfy himself as to the accuracy of each such inventory and shall determine the total amount of the tax payment represented thereby.

"Each wholesale distributor and importer may claim credit or refund on his monthly report due on or before January 15, 1968, for the full amount of the tax represented by the inventory filed as required by this subsection. The Commissioner of Revenue shall provide for a credit or refund equal to the full amount of said tax to each wholesale distributor or importer claiming same.

"Each wholesale distributor or importer shall, after determination of the amount of credit or refund due him, thereafter be permitted to sell or otherwise dispose of all beverages enumerated in G.S. 18-64, G.S. 18-96 and G.S. 18-99 to which tax-paid crowns, lids or stamps are affixed, which are in his possession and control as of the close of business on December 31, 1967, and which have been reported in the inventory required by this subsection; provided that said crowns, lids or stamps shall not be considered evidence that the excise tax has been paid, on the beverages to which they are affixed."

Sec. 21.  Amend G.S. 18-82 by rewriting same to read as follows:

"18-82.  By Whom Excise Taxes Payable. The excise tax levied in G.S. 18-81 upon the sale of beverages enumerated in G.S. 18-64, subsection (1) shall be paid to the Commissioner of Revenue by the wholesale distributor or importer of such beverages, and the excise tax levied in G.S. 18-81 upon the sale of beverages enumerated in G.S. 18-64, subsection (2), G.S. 18-96 and G.S. 18-99 shall be paid to the Commissioner of Revenue by the wholesale distributor or importer of such beverages; provided that the excise tax levied in G.S. 18-81 shall be paid and collected on the same beverages only once. The Commissioner of Revenue shall require each wholesale distributor or importer to furnish bond in an indemnity company licensed to do business under the insurance laws of this State in such sums as the Commissioner of Revenue shall find adequate to cover the tax liability of each such wholesale distributor or importer, proportioned to the volume of business of each such wholesale distributor or importer, but in no event to be less than one thousand dollars ($1,000.00) or more than fifty thousand dollars ($50,000.00), or to deposit federal, State, county or municipal bonds in required amounts, such county and municipal bonds to be approved by the Commissioner of Revenue. The Commissioner of Revenue may grant such extension of time for compliance with this condition as may be found reasonable."

Sec. 22.  Amend G.S. 18-83.2 by striking out subsection (b) and (c) thereof.

Sec. 23.  Amend G.S. 18-85.1 by striking out all of said Section after the first sentence thereof.

Sec. 24.  Amend G.S. 18-88.2 by striking out the last sentence in said Section.

Sec. 25.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 26.  This Act shall be in full force and effect from and after January 1, 1968.

In the General Assembly read three times and ratified, this the 18th day of June, 1967.