2005 North Carolina Code - General Statutes Article 36B - Tax on Carriers Using Fuel Purchased Outside State.
Article 36B.
Tax on Carriers Using Fuel Purchased Outside State.
§ 105‑449.37.� Definitions; tax liability.
(a)������ Definitions. � The following definitions apply in this Article:
(1)������ Motor carrier. � A person who operates or causes to be operated on any highway in this State a motor vehicle that is a qualified motor vehicle under the International Fuel Tax Agreement. The term does not include the United States, the State, or a political subdivision of the State.
(1a)���� Motor vehicle. � A motor vehicle as defined in G.S. 105‑164.3 other than special mobile equipment as defined in G.S. 105‑164.3.
(2)������ Operations. � Operations of all motor vehicles described in subdivision (1), whether loaded or empty and whether or not operated for compensation.
(2a)���� Person. � Defined in G.S. 105‑228.90.
(3)������ Secretary. � The Secretary of Revenue.
(b)������ Liability. � A motor carrier who operates on one or more days of a reporting period is liable for the tax imposed by this Article for that reporting period and is entitled to the credits allowed for that reporting period. (1955, c. 823, s. 1; 1973, c. 476, s. 193; 1983, c. 713, s. 55; 1989, c. 7, s. 1; 1991, c. 182, s. 2; c. 487, s. 2; 1991 (Reg. Sess., 1992), c. 913, s. 8; 1993, c. 354, s. 28; 1999‑337, s. 36; 2000‑140, s. 74.)
§ 105‑449.38.� Tax levied.
A road tax for the privilege of using the streets and highways of this State is imposed upon every motor carrier on the amount of motor fuel or alternative fuel used by the carrier in its operations within this State. The tax shall be at the rate established by the Secretary pursuant to G.S. 105‑449.80 or G.S. 105‑449.136, as appropriate. This tax is in addition to any other taxes imposed on motor carriers (1955, c. 823, s. 2; 1969, c. 600, s. 22; 1981, c. 690, s. 3; 1985 (Reg. Sess., 1986), c. 982, s. 16; 1995, c. 390, s. 16; 2001‑205, s. 2.)
§ 105‑449.39.� Credit for payment of motor fuel tax.
Every motor carrier subject to the tax levied by this Article is entitled to a credit on its quarterly report for tax paid by the carrier on fuel purchased in the State. The amount of the credit is determined using the flat cents‑per‑gallon rate plus the variable cents‑per‑gallon rate of tax in effect during the quarter covered by the report. To obtain a credit, the motor carrier must furnish evidence satisfactory to the Secretary that the tax for which the credit is claimed has been paid.
If the amount of a credit to which a motor carrier is entitled for a quarter exceeds the motor carrier's liability for that quarter, the Secretary must refund the excess to the motor carrier in accordance with G.S. 105‑266(a)(3). (1955, c. 823, s. 3; 1969, c. 600, s. 22; c. 1098; 1973, c. 476, s. 193; 1979, 2nd Sess., c. 1098; 1981, c. 690, s. 3; 1985 (Reg. Sess., 1986), c. 982, s. 17; 1987, c. 315; 1989, c. 692, s. 5.7; 1991, c. 182, s. 3; c. 487, s. 3; 1998‑146, s. 1; 1999‑337, s. 37; 2005‑435, s. 3.)
§ 105‑449.40.� Secretary may require bond.
(a)������ Authority. � The Secretary may require a motor carrier to furnish a bond when any of the following occurs:
(1)������ The motor carrier fails to file a report within the time required by this Article.
(2)������ The motor carrier fails to pay a tax when due under this Article.
(3)������ After auditing the motor carrier's records, the Secretary determines that a bond is needed to protect the State from loss in collecting the tax due under this Article.
(b)������ Amount. � A bond required of a motor carrier under this section may not be more than the larger of the following amounts:
(1)������ Five hundred dollars ($500.00).
(2)������ Four times the motor carrier's average tax liability or refund for a reporting period.
A bond must be in the form required by the Secretary. (1955, c. 823, s. 4; 1967, c. 1110, s. 15; 1973, c. 476, s. 193; 1991, c. 487, s. 4.)
§ 105‑449.41: Repealed by Session Laws 2002‑108, s. 2, effective January 1, 2003.
§ 105‑449.42.� Payment of tax.
The tax levied by this Article is due when a motor carrier files a quarterly report under G.S. 105‑449.45. The amount of tax due is calculated on the amount of motor fuel or alternative fuel used by the motor carrier in its operations within this State during the quarter covered by the report. (1955, c. 823, s. 6; 1973, c. 476, s. 193; 1979, 2nd Sess., c. 1086, s. 2; 1983, c. 29, s. 2; 1991, c. 182, s. 4; 1999‑337, s. 38.)
§ 105‑449.42A.� Leased motor vehicles.
(a)������ Lessor in Leasing Business. � A lessor who is regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation is the motor carrier for a leased or rented motor vehicle unless the lessee of the leased or rented motor vehicle gives the Secretary written notice, by filing a report or otherwise, that the lessee is the motor carrier. In that circumstance, the lessee is the motor carrier for the leased or rented motor vehicle.
Before a lessee gives the Secretary written notice under this subsection that the lessee is the motor carrier, the lessee and lessor must make a written agreement for the lessee to be the motor carrier. Upon request of the Secretary, the lessee must give the Secretary a copy of the agreement.
(b)������ Independent Contractor. � The lessee of a motor vehicle that is leased from an independent contractor is the motor carrier for the leased motor vehicle unless either of the following applies:
(1)������ The motor vehicle is leased for fewer than 30 days.
(2)������ The motor vehicle is leased for at least 30 days and the lessor gives the Secretary written notice, by filing a report or otherwise, that the lessor is the motor carrier.
If either of these circumstances applies, the lessor is the motor carrier for the leased motor vehicle.
Before a lessor gives the Secretary written notice under subdivision (2) that the lessor is the motor carrier, the lessor and lessee must make a written agreement for the lessor to be the motor carrier. Upon request of the Secretary, the lessor must give the Secretary a copy of the agreement.
(c)������ Liability. � An independent contractor who leases a motor vehicle to another for fewer than 30 days is liable for compliance with this Article and the person to whom the motor vehicle is leased is not liable. Otherwise, both the lessor and lessee of a motor vehicle are jointly and severally liable for compliance with this Article. (1983, c. 29, s. 3; 1985 (Reg. Sess., 1986), c. 826, s. 11; 1991, c. 487, s. 5; 1991 (Reg. Sess., 1992), c. 913, s. 9.)
§ 105‑449.43.� Application of tax proceeds.
Tax revenue collected under this Article and tax refunds or credits allowed under this Article shall be allocated among and charged to the funds and accounts listed in G.S. 105‑449.125 in accordance with that section. (1955, c. 823, s. 7; 1981 (Reg. Sess., 1982), c. 1211, s. 3; 1989, c. 692, s. 1.16; 1995, c. 390, s. 17.)
§ 105‑449.44.� How to determine the amount of fuel used in the State; presumption of amount used.
(a)������ Calculation. � The amount of motor fuel or alternative fuel a motor carrier uses in its operations in this State for a reporting period is the number of miles the motor carrier travels in this State during that period divided by the calculated miles per gallon for the motor carrier for all qualified vehicles during that period.
(b)������ Presumption. � The Secretary must check reports filed under this Article against the weigh station records and other records of the Division of Motor Vehicles of the Department of Transportation concerning motor carriers to determine if motor carriers that are operating in this State are filing the reports required by this Article. The Department may assess a motor carrier for the amount payable based on the presumed mileage. A motor carrier that does either of the following for a quarter is presumed to have traveled in this State during that quarter the number of miles equal to 10 trips of 450 miles each for each of the motor carrier's vehicles:
(1)������ Fails to file a report for the quarter and the records of the Division indicate the carrier operated in this State during the quarter.
(2)������ Files a report for the quarter that, based on the records of the Division, understates by at least twenty‑five percent (25%) the carrier's mileage in this State for the quarter.
(c)������ Vehicles. � The number of vehicles of a motor carrier that is registered under this Article is the number of identification markers issued to the carrier. The number of vehicles of a carrier that is not registered under this Article is the number of vehicles registered by the motor carrier in the carrier's base state under the International Registration Plan. (1955, c. 823, s. 8; 1995, c. 390, s. 35; 1999‑337, s. 39; 2000‑173, s. 12; 2005‑435, s. 4.)
§ 105‑449.45.� Reports of carriers.
(a)������ Report. � A motor carrier must report its operations to the Secretary on a quarterly basis unless subsection (b) of this section exempts the motor carrier from this requirement. A quarterly report covers a calendar quarter and is due by the last day in April, July, October, and January.
(b)������ Exemptions. � A motor carrier is not required to file a quarterly report if any of the following applies:
(1)������ All the motor carrier's operations during the quarter were made under a temporary permit issued under G.S. 105‑449.49.
(2)������ The motor carrier is an intrastate motor carrier, as indicated on the motor carrier's application for registration with the Secretary.
(c)������ Other Reports. � A motor carrier must file with the Secretary other reports concerning its operations that the Secretary requires.
(d)������ Penalties. � A motor carrier that fails to file a report under this section by the required date is subject to a penalty of fifty dollars ($50.00). (1955, c. 823, s. 9; 1973, c. 476, s. 193; 1979, 2nd Sess., c. 1086, s. 2; 1981 (Reg. Sess., 1982), c. 1254, s. 2; 1989 (Reg. Sess., 1990), c. 1050, s. 1; 1991, c. 182, s. 5; 1995, c. 17, s. 13.1; 1998‑212, s. 29A.14(q); 1999‑337, s. 40.)
§ 105‑449.46.� Inspection of books and records.
The Secretary and his authorized agents and representatives shall have the right at any reasonable time to inspect the books and records of any motor carrier subject to the tax imposed by this Article or to the registration fee imposed by Article 3 of Chapter 20 of the General Statutes. (1955, c. 823, s. 10; 1973, c. 476, s. 193; 2005‑435, s. 5.)
§ 105‑449.47.� Registration of vehicles.
(a)������ Requirement. � A motor carrier that is subject to the International Fuel Tax Agreement may not operate or cause to be operated in this State any vehicle listed in the definition of motor vehicle unless both the motor carrier and the motor vehicle are registered with the motor carrier's base state jurisdiction. A motor carrier that is not subject to the International Fuel Tax Agreement may not operate or cause to be operated in this State any vehicle listed in the definition of motor vehicle unless both the motor carrier and the motor vehicle are registered with the Secretary for purposes of the tax imposed by this Article.
(a1)���� Registration and Identification Marker. � When the Secretary registers a motor carrier, the Secretary must issue at least one identification marker for each motor vehicle operated by the motor carrier. A motor carrier must keep records of identification markers issued to it and must be able to account for all identification markers it receives from the Secretary. Registrations and identification markers issued by the Secretary are for a calendar year. All identification markers issued by the Secretary remain the property of the State. The Secretary may revoke a registration or an identification marker when a motor carrier fails to comply with this Article or Article 36C or 36D of this Subchapter.
A motor carrier must carry a copy of its registration in each motor vehicle operated by the motor carrier when the vehicle is in this State. A motor vehicle must clearly display an identification marker at all times. The identification marker must be affixed to the vehicle for which it was issued in the place and manner designated by the authority that issued it.
(b)������ Exemption. � This section does not apply to the operation of a vehicle that is registered in another state and is operated temporarily in this State by a public utility, a governmental or cooperative provider of utility services, or a contractor for one of these entities for the purpose of restoring utility services in an emergency outage. (1955, c. 823, s. 11; 1973, c. 746, s. 193; 1983, c. 713, s. 56; 1985 (Reg. Sess., 1986), c. 937, s. 20; 1989, c. 692, s. 6.2; 1991, c. 487, s. 6; 1995, c. 50, s. 5; c. 390, s. 18; 1999‑337, s. 41; 2002‑108, s. 3; 2004‑170, s. 24; 2005‑435, s. 6.)
§ 105‑449.47A.� Reasons why the Secretary can deny an application for a registration and identification marker.
The Secretary may refuse to register and issue an identification marker to an applicant that has done any of the following:
(1)������ Had a registration issued under Chapter 105 or Chapter 119 of the General Statutes cancelled by the Secretary for cause.
(2)������ Had a registration issued by another jurisdiction, pursuant to G.S. 105‑449.57, cancelled for cause.
(3)������ Been convicted of fraud or misrepresentation.
(4)������ Been convicted of any other offense that indicates that the applicant may not comply with this Article if registered and issued an identification marker.
(5)������ Failed to remit payment for a tax debt under Chapter 105 or Chapter 119 of the General Statutes. The term "tax debt" has the same meaning as defined in G.S. 105‑243.1.
(6)������ Failed to file a return due under Chapter 105 or Chapter 119 of the General Statutes. (2005‑435, s. 7.)
§ 105‑449.48.� Fees and civil penalties credited to Highway Fund.
All fees collected under this Article and all civil penalties collected under G.S. 105‑449.52 shall be credited to the Highway Fund. (1955, c. 823, s. 12; 1973, c. 476, s. 193; 1983, c. 713, s. 57; 1991, c. 42, s. 13.)
§ 105‑449.49.� Temporary permits.
Upon application to the Secretary and payment of a fee of fifty dollars ($50.00), a motor carrier may obtain a temporary permit authorizing the carrier to operate a vehicle in the State without registering the vehicle in accordance with G.S. 105‑449.47 for not more than three days. A motor carrier to whom a temporary permit has been issued may elect not to report its operation of the vehicle during the three‑day period. The Secretary may refuse to issue a temporary permit to any of the following:
(1)������ A motor carrier whose registration has been withheld or revoked.
(2)������ A motor carrier who the Secretary determines is evading payment of tax through the successive purchase of temporary permits. (1955, c. 823, s. 13; 1973, c. 476, s. 193; 1979, c. 11; 1981 (Reg. Sess., 1982), c. 1254, s. 1; 1983, c. 713, s. 58; 1991, c. 182, s. 6; c. 487, s. 7; 1991 (Reg. Sess., 1992), c. 913, s. 10; 2003‑349, s. 10.1.)
§ 105‑449.50.� Application blanks.
The Secretary shall prepare forms to be used in making applications in accordance with this Article and the applicant shall furnish all information required by such forms. (1955, c. 823, s. 14; 1973, c. 476, s. 193.)
§ 105‑449.51.� Violations declared to be misdemeanors.
Any person who operates or causes to be operated on a highway in this State a motor vehicle that does not carry a registration card as required by this Article, does not properly display an identification marker as required by this Article, or is not registered in accordance with this Article is guilty of a Class 3 misdemeanor and, upon conviction thereof, shall be fined two hundred dollars ($200.00). Each day's operation in violation of any provision of this section shall constitute a separate offense. (1955, c. 823, s. 15; 1973, c. 476, s. 193; 1983, c. 713, s. 59; 1993, c. 539, s. 734; 1994, Ex. Sess., c. 24, s. 14(c); 2005‑435, s. 8.)
§ 105‑449.52.� Civil penalties applicable to motor carriers.
(a)������ Penalty. � A motor carrier who does any of the following is subject to a civil penalty:
(1)������ Operates in this State or causes to be operated in this State a motor vehicle that either fails to carry the registration card required by this Article or fails to display an identification marker in accordance with this Article. The amount of the penalty is one hundred dollars ($100.00).
(2)������ Is unable to account for identification markers the Secretary issues the motor carrier, as required by G.S. 105‑449.47. The amount of the penalty is one hundred dollars ($100.00) for each identification marker the carrier is unable to account for.
(3)������ Displays an identification marker on a motor vehicle operated by a motor carrier that was not issued to the carrier by the Secretary under G.S. 105‑449.47. The amount of the penalty is one thousand dollars ($1,000) for each identification marker unlawfully obtained. Both the licensed motor carrier to whom the Secretary issued the identification marker and the motor carrier displaying the unlawfully obtained identification marker are jointly and severally liable for the penalty under this subdivision.
A penalty imposed under this section is payable to the Department of Revenue, the Department of Crime Control and Public Safety, or the Division of Motor Vehicles. When a motor vehicle is found to be operating without a registration card or an identification marker or with an identification marker the Secretary did not issue for the vehicle, the motor vehicle may not be driven for a purpose other than to park the motor vehicle until the penalty imposed under this section is paid unless the officer that imposes the penalty determines that operation of the motor vehicle will not jeopardize collection of the penalty.
(b)������ Hearing. � The procedure set out in G.S. 105‑449.119 for protesting a penalty imposed under Article 36C, Part 6, of this Chapter applies to a penalty imposed under this section. (1955, c. 823, s. 16; 1957, c. 948; 1973, c. 476, s. 193; 1975, c. 716, s. 5; 1981, c. 690, s. 18; 1983, c. 713, s. 60; 1991, c. 42, s. 14; 1991 (Reg. Sess., 1992), c. 913, s. 11; 1998‑146, s. 2; 1999‑337, s. 43; 2002‑108, s. 4; 2004‑170, s. 25.)
§ 105‑449.53.� Repealed by Session Laws 1963, c. 1169, s. 6.
§ 105‑449.54.� Commissioner of Motor Vehicles made process agent of nonresident motor carriers.
By operating a motor vehicle on the highways of this State, a nonresident motor carrier consents to the appointment of the Commissioner of Motor Vehicles as its attorney in fact and process agent for all summonses or other lawful process or notice in any action, assessment, or other proceeding under this Chapter. (1955, c. 823, s. 18; 2004‑170, s. 26.)
§§ 105‑449.55 through 105‑449.56:� Repealed by Session Laws 1991, c.� 42, s. 17.
§ 105‑449.57.� Cooperative agreements between jurisdictions.
(a)������ Authority. � The Secretary may enter into cooperative agreements with other jurisdictions for exchange of information in administering the tax imposed by this Article. No agreement, arrangement, declaration, or amendment to an agreement is effective until stated in writing and approved by the Secretary.
(b)������ Content. � An agreement may provide for determining the base state for motor carriers, records requirements, audit procedures, exchange of information, persons eligible for tax licensing, defining qualified motor vehicles, determining if bonding is required, specifying reporting requirements and periods, including defining uniform penalty and interest rates for late reporting, determining methods for collecting and forwarding of motor carrier taxes and penalties to another jurisdiction, and any other provisions that will facilitate the administration of the agreement.
(c)������ Disclosure. � In accordance with G.S. 105‑259, the Secretary may, as required by the terms of an agreement, forward to officials of another jurisdiction any information in the Department's possession relative to the use of motor fuel or alternative fuel by any motor carrier. The Secretary may disclose to officials of another jurisdiction the location of offices, motor vehicles, and other real and personal property of motor carriers.
(d)������ Audits. � An agreement may provide for each jurisdiction to audit the records of motor carriers based in the jurisdiction to determine if the taxes due each jurisdiction are properly reported and paid. Each jurisdiction must forward the findings of the audits performed on motor carriers based in the jurisdiction to each jurisdiction in which the carrier has taxable use of motor fuel or alternative fuel. For motor carriers not based in this State, the Secretary may utilize the audit findings received from another jurisdiction as the basis upon which to propose assessments of taxes against the carrier as though the audit had been conducted by the Secretary. Penalties and interest must be assessed at the rates provided in the agreement.
No agreement entered into pursuant to this section may preclude the Department from auditing the records of any motor carrier covered by this Chapter.
The provisions of Article 9 of this Chapter apply to any assessment or order made under this section.
(e)������ Restriction. � The Secretary may not enter into any agreement that would increase or decrease taxes and fees imposed under Subchapter V of Chapter 105 of the General Statutes. Any provision to the contrary is void. (1989, c. 667, s. 1; 1993, c. 485, s. 36; 1995 (Reg. Sess., 1996), c. 647, s. 50; 1999‑337, s. 42.)
§ 105‑449.58.� Reserved for future codification purposes.
§ 105‑449.59.� Reserved for future codification purposes.
