NORTH CAROLINA GENERAL ASSEMBLY
1967 SESSION

CHAPTER 519
SENATE BILL 381

AN ACT TO AUTHORIZE MANUFACTURERS A REIMBURSEMENT OF AN AMOUNT EQUIVALENT TO THE FRANCHISE TAX ON THE GROSS RECEIPTS FOR PIPED GAS USED AS AN INGREDIENT OR COMPONENT PART OF A MANUFACTURED PRODUCT.

The General Assembly of North Carolina do enact:

Section 1.  Subsection (a) of G.S. 105-116 is hereby amended by adding a new paragraph to be designated "(5)" and to read as follows:
"(5)	As to gas companies, the gross receipts derived from sales of piped gas to manufacturers which is to be used as an ingredient or component of a manufactured product."
Sec. 2.  Article 3 of Chapter 105 of the North Carolina General Statutes being the Franchise Tax Article is hereby amended by adding a new Section to be designated "§ 105-129.1" and to read as follows:
"§ 105-129.1.  Reimbursement Authorized Certain Manufacturers. (a) Any person, firm, or corporation who shall buy within this State any piped gas from a gas company authorized to do business in this State and shall use such piped gas in this State as an ingredient or component part of a manufactured product shall be reimbursed in the amount equivalent to the franchise tax on the gross receipts for such piped gas. This reimbursement to be made upon the following conditions and in the following manner:
"(1)	On or before the last day of January, April, July and October of each year the manufacturer entitled to a reimbursement under this Section shall apply to the Commissioner of Revenue for such reimbursement. Such application shall be made upon such forms as the Commissioner of Revenue shall prescribe and shall be for gas purchased during the three-month period ending on the last day of the month preceding the month in which the application for reimbursement is required to be filed.
"(2)	The Commissioner of Revenue is hereby authorized to prescribe such rules and regulations as to how claims shall be filed and the information that shall be submitted with said claims and the records required to support said claims.
"(3)	If, upon filing such application, the Commissioner of Revenue shall be satisfied that the same is filed within the time limits prescribed herein and is made in good faith and that the gas upon which said reimbursement is requested has been or will be used as an ingredient or component part of a manufactured product, he shall issue the applicant a warrant upon the State Treasurer for the reimbursement.
"(4)	Any applicant for a reimbursement may seek administrative review or appeal from the decision of the Commissioner of Revenue under the provisions of G.S. 105-241.2, 105-241.3 and 105-241.4.
"(5)	The Commissioner of Revenue is hereby authorized and directed, if at any time in his opinion there is reason to doubt the accuracy of the facts set forth in any application for reimbursement to refer the matter to any agent of the Department of Revenue, and such person so designated shall make a careful investigation of all the facts and circumstances relating to said application in the use of the gas therein referred to, and shall have a right to have access to the books and records of any retailer or distributor of gas products for the purpose of obtaining the necessary information concerning such matters, and shall make due report thereof to the Commissioner of Revenue.
"(b)	Any person making a false application or affidavit for the purpose of securing a reimbursement to which he is not entitled under the provisions of this Section shall be guilty of a misdemeanor and upon conviction thereof shall be fined not exceeding five hundred dollars ($500.00) or imprisoned not exceeding two years, in the discretion of the court."
Sec. 3.  Subsection (g) of G.S. 105-116 is hereby amended by adding at the end of the first paragraph thereof the following: "Provided, that in determining the amount to be distributed to a municipality pursuant to this subsection, 'gross receipts' shall mean gross receipts less receipts from sales of piped gas to manufacturers for use as an ingredient or component part of a manufactured product."
Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 5.  This Act shall be in full force and effect on and after July 1, 1967.
In the General Assembly read three times and ratified, this the 18th day of May, 1967.