GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION
CHAPTER 681
AN ACT TO EXPAND THE STATE PORTS TAX CREDIT.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-130.41 reads as rewritten:
"§ 105-130.41. (For expiration date see note) Credit for North Carolina State Ports Authority wharfage and handling charges on exports.
(a) Credit. - A
corporation utilizing the deepwater docks at the Wilmington or Morehead City
ports for the export of cargo that is loaded on an ocean carrier calling at
either port is allowed a credit against the tax imposed by this Division. The
amount of credit allowed is equal to the excess of the charges paid, directly
or indirectly, by the corporation on exported, processed cargo for the current
taxable year over an amount equal to the average of the charges paid by the
corporation on exported, processed cargo for the current taxable year and the
two preceding taxable years. The credit applies to the following charges on
exported, processed cargo assessed by the Ports Authority: wharfage, handling
charges on break bulk cargo or LCL (less-than-container-load) cargo, bulk
through put charges, and the equivalent or like charges on container cargo. To
obtain the credit, a corporation must provide to the Secretary a statement from
the State Ports Authority certifying the amount of charges paid by the
corporation for which a credit is claimed and any other information required by
the Secretary.
A taxpayer who is a cargo owner utilizing the deep water docks at the Wilmington or Morehead City port for the movement of export cargo onto an ocean carrier calling at either State-owned port terminal, without consideration of the free-on-board (FOB) terms under which the export cargo is moved, is allowed a credit against the tax imposed by this Division. The amount of credit allowed is equal to the excess of the wharfage, handling in, and through put charges assessed on the cargo owned by that cargo owner for the current taxable year over an amount equal to the average of the charges for the current taxable year and the two preceding taxable years. The credit applies to break-bulk cargo, bulk cargo, and container cargo including less-than-container load cargo. To obtain the credit, taxpayers must provide to the Secretary a statement from the State Ports Authority certifying the amount of charges for which a credit is claimed and any other information required by the Secretary.
(b) Limitations. - This
credit may not exceed fifty percent (50%) of the amount of tax imposed by this
Division for the taxable year reduced by the sum of all credits allowable
under this Division, allowable, except tax payments made by or on
behalf of the corporation. Any unused portion of the credit may be carried forward
for the succeeding five years. The maximum cumulative credit that may be
claimed by a corporation under this section is one million dollars
($1,000,000).
(c) Definitions. - For
purposes of this section, the terms 'handling' 'handling in' and
'wharfage' have the meanings provided in the State Ports Tariff Publications,
'Wilmington Tariff, Terminal Tariff #6,' and 'Morehead City Tariff, Terminal
Tariff #1.' For purposes of this section, the term 'through put' has the
same meaning as 'wharfage' but applies only to bulk products, both dry and
liquid."
Sec. 2. G.S. 105-151.22 reads as rewritten:
"§ 105-151.22. (For expiration date see note) Credit for North Carolina State Ports Authority wharfage and handling charges on exports.
(a) Credit. - A
taxpayer utilizing the deepwater docks at the Wilmington or Morehead City ports
for the export of cargo that is loaded on an ocean carrier calling at either
port is allowed a credit against the tax imposed by this Division. The amount
of credit allowed is equal to the excess of the charges paid, directly or
indirectly, by the taxpayer on exported, processed cargo for the current
taxable year over an amount equal to the average of the charges paid by the
taxpayer on exported, processed cargo for the current taxable year and the two
preceding taxable years. The credit applies to the following charges on
exported, processed cargo assessed by the Ports Authority: wharfage, handling
charges on break bulk cargo or LCL (less-than-container-load) cargo, bulk through
put charges, and the equivalent or like charges on container cargo. To obtain
the credit, a taxpayer must provide to the Secretary a statement from the State
Ports Authority certifying the amount of charges paid by the taxpayer for which
a credit is claimed and any other information required by the Secretary.
A taxpayer who is a cargo owner utilizing the deep water docks at the Wilmington or Morehead City port for the movement of export cargo onto an ocean carrier calling at either State-owned port terminal, without consideration of the free-on-board (FOB) terms under which the export cargo is moved, is allowed a credit against the tax imposed by this Division. The amount of credit allowed is equal to the excess of the wharfage, handling in, and through put charges assessed on the cargo owned by that cargo owner for the current taxable year over an amount equal to the average of the charges for the current taxable year and the two preceding taxable years. The credit applies to break-bulk cargo, bulk cargo, and container cargo including less-than-container load cargo. To obtain the credit, taxpayers must provide to the Secretary a statement from the State Ports Authority certifying the amount of charges for which a credit is claimed and any other information required by the Secretary.
(b) Limitations. - This
credit may not exceed fifty percent (50%) of the amount of tax imposed by this
Division for the taxable year reduced by the sum of all credits allowable
under this Division, allowable, except tax payments made by or on
behalf of the taxpayer. Any unused portion of the credit may be carried forward
for the succeeding five years. The maximum cumulative credit that may be
claimed by a taxpayer under this section is one million dollars ($1,000,000).
(c) Definitions. - For
purposes of this section, the terms 'handling' 'handling in' and
'wharfage' have the meanings provided in the State Ports Tariff Publications,
'Wilmington Tariff, Terminal Tariff #6,' and 'Morehead City Tariff, Terminal
Tariff #1.' For purposes of this section, the term 'through put' has the
same meaning as 'wharfage' but applies only to bulk products, both dry and
liquid."
Sec. 3. Section 3 of Chapter 977 of the 1991 Session Laws reads as rewritten:
"Sec. 3. The North Carolina State Ports Authority
shall report annually to the General Assembly regarding the impact of this act
on shipping and economic growth. Each report shall show the overall
annual increase in shipping at each port affected by this act for the most
recent year for which data is available and for each of the previous 10
years. Each report shall estimate the number of jobs created at each port
and in businesses related to port activity at each port since January 1,
1992, July 1, 1992, as compared to the number of similar jobs
created during the 10 years preceding January 1, 1992. July 1,
1992. Each report shall state the net economic impact on the State as
a result of the allowance of tax credits under this act. Each report
shall include the number of persons using the tax credit who have stopped, or
are likely to stop, using a North Carolina port when the credit expires and to
then use a port in another state. The Ports Authority shall file a report
on May 1 of 1993, 1994, and 1995, by submitting a copy to the Speaker of the
House of Representatives and the President Pro Tempore of the Senate. The
Department of Revenue and the Department of Economic and Community
Development Commerce shall cooperate with the Ports Authority in
providing the information required in the annual reports."
Sec. 4. This act is effective for taxable years beginning on or after January 1, 1994.
In the General Assembly read three times and ratified this the 5th day of July, 1994.
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Dennis A. Wicker
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives