AG 2002 05 20 (Regular) - Laserfiche WebLink

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Suggested Statutory Provisions and Constitutional Amendment to .secure the local reimbursements and state collected local taxes 1. Statutory provisions The language in "A" should be placed in every section levying taxes, and distributing all or a portion of the proceeds to local governments utility franchise taxes, Poweli bill funds, beer and wine tax, etc. It will need to be modified to fit the particular tax section.) A. This tax [or a portion of the tax] is levied for the benefit of and on behalf.of units of local government to the same eXtent .and manner as if the levies were made by the respective local governing bodies. (Explanatory Note: This language is taken from the previously repealed intangibles tax statutes, G.S. 105-198. The N.C. Supreme Court held in Yokle¥ v. Clark, 262 N.C. 218 (1964), that in using this language the General Assembly had levied a local tax.) The language in "B" should be added as a new section in the Executive Budget Act. The General Assembly recognizes that it has' required units of lOcal government to adopt and maintain annual balanced budgets and take other steps to assure financially sound operations, under The Local Government Budget and Fiscal Control Act and other.provisions of G.S. Chapter 159.. Accordingly, the General Assembly finds that in order to satisfy those statutory requirements and provide adequate services, to their citizens, units of local government must be able to rely on the funds and local revenue sources the General Assembly has provided. It is the intent of the General Assembly that funds that' have been collected' by the State for units of local government or that otherwise have been committed by the General Assembly to units of local government by statute or'any uncodified act shall not be reduced except as provided in this section. The Governor, in exercising the powers contained in Article III, Section 5(3) of the Constitution necessary to insure that the State does not incur a deficit during the period, or otherwise, shall not withhold from distribution funds that have been collected by the State for units of local government or that otherwise have been committed by the General Assembly to units of local government bY statute or any uncodified act, unless he shall have' exhausted all other sources of revenue of the state including surplus remaining in the Treasury at the beginning of the period,' and unless authorized by an act Of the General. Assembly.