<div class="chunk-title">Sec. 5-3. - Tax on gross receipts derived from retail short-term lease or rental of motor vehicles.</div>
<div class="chunk-content">
            <p class="incr0">
               (a)
               </p>
            		
            <p class="content1">
               <span class="ital">Definitions.</span> The following definitions shall apply to this section.
               </p>
            		
            <p class="p0">
               <span class="ital">Customer</span> shall mean any person that leases or rents a vehicle on a short-term lease or rental
               basis.
               </p>
            <p class="p0">
               <span class="ital">General Statutes</span> shall refer to the North Carolina General Statutes and any reference to a particular
               section thereof shall include the same as may be from time to time amended, modified,
               supplemented, revised or superseded.
               </p>
            <p class="p0">
               <span class="ital">Gross receipts</span> shall mean the total lease or rental price charged to a customer for the short term
               lease or rental at retail of vehicles, excluding sales taxes and excluding the taxes
               imposed by this section.
               </p>
            <p class="p0">
               <span class="ital">Lease or rental</span> shall mean a transfer, for consideration, of the use but not the ownership of a vehicle
               to another for a period of time.
               </p>
            <p class="p0">
               <span class="ital">Person</span> shall mean any individual, trustee, executor, other fiduciary, corporation, unincorporated
               association, partnership, sole proprietorship, company, firm, or other legal entity.
               </p>
            <p class="p0">
               <span class="ital">Retail</span> shall mean the lease or rental of vehicles for any use or purpose other than for
               releasing or subleasing by the customer.
               </p>
            <p class="p0">
               <span class="ital">Short-term lease</span> or <span class="ital">rental</span> shall mean any vehicle lease or rental, whether written or verbal, which is made
               to the same person for a period of less than three hundred sixty-five (365) continuous
               days.
               </p>
            <p class="p0">
               <span class="ital">Tax collector</span> shall mean the county tax collector.
               </p>
            <p class="p0">
               <span class="ital">Tax assessor</span> shall mean the county tax assessor.
               </p>
            <p class="p0">
               <span class="ital">Taxpayer</span> shall mean any person liable to the county for the collection, reporting and payment
               of the taxes imposed by this section.
               </p>
            <p class="p0">
               <span class="ital">Vehicle</span> shall mean any of the following:
               
               <p class="incr1">
                  (1)
                  </p>
               		
               <p class="content2">
                  A motor vehicle of the private passenger type, including a passenger van, mini-van,
                  or sport utility vehicle;
                  </p>
               		
               
               <p class="incr1">
                  (2)
                  </p>
               		
               <p class="content2">
                  A motor vehicle of the cargo type, including cargo van, pickup truck, or truck with
                  a gross vehicle weight of twenty-six thousand (26,000) pounds or less used predominately
                  in the transportation of property for other than commercial freight and that does
                  not require the operator to possess a commercial drivers license; and
                  </p>
               		
               
               <p class="incr1">
                  (3)
                  </p>
               		
               <p class="content2">
                  A trailer or semi-trailer with a gross vehicle weight of six thousand (6,000) pounds
                  or less.
                  </p>
               		
               
            <p class="incr0">
               (b)
               </p>
            		
            <p class="content1">
               <span class="ital">Levy of tax.</span> A tax is hereby imposed and levied in an amount equal to one and one-half (1.5) percent
               of the gross receipts as defined in subsection (a).
               </p>
            		
            <p class="incr0">
               (c)
               </p>
            		
            <p class="content1">
               <span class="ital">Administration.</span> The tax assessor shall administer and the tax collector shall collect the taxes levied
               herein from every person engaged in the business of short term leasing or rental of
               vehicles, and the tax assessor may promulgate additional rules and regulations necessary
               for implementation of the taxes. In addition to the provisions herein, the levy and
               collection of the taxes herein imposed shall be administered in the same manner as
               the sales and use tax as provided in G.S. Ch. 105, Subch. 1, Arts. 5 and 9.
               </p>
            		
            <p class="incr0">
               (d)
               </p>
            		
            <p class="content1">
               <span class="ital">Collection.</span> Every person engaged in the business of the short-term lease or rental of vehicles
               at retail to customers shall collect at the time of the lease or rental the tax herein
               levied, place the tax so collected in a segregated account, and thereafter remit such
               tax to the tax collector in accordance with the provisions of this section. The taxpayer
               shall include a provision in each retail short-term lease or rental agreement stating
               that one and one-half (1.5) percent of the total lease or rental price, excluding
               sales tax, is being charged as a tax on gross receipts. The amount of the tax shall
               be stated separately from the lease or rental amount and shall be shown separately
               on the taxpayer's records. The customer shall pay the tax to the taxpayer as trustee
               for and on account of the county. The taxpayer shall be liable for the collection
               thereof and for its payment to the tax collector, and the taxpayer's failure to charge
               or to collect said tax from the customer shall not affect such liability. The taxes
               collected under this section are not subject to sales tax. The taxes collected under
               this section belong to the county and are not subject to creditor liens against the
               taxpayer.
               </p>
            		
            <p class="incr0">
               (e)
               </p>
            		
            <p class="content1">
               <span class="ital">Report and payment of tax.</span> The taxes levied hereby are due and payable when a return is required to be filed.
               Every taxpayer shall, within the time specified, submit a return to the tax assessor
               on the form prescribed by the tax assessor. The taxpayer or the taxpayer's agent must
               sign the return. Returns of taxpayers are due to the tax assessor each month on or
               before the fifteenth day of the month following the month in which the tax accrues.
               A return filed for this purpose is not a public record as defined by G.S. Â§ 132-1
               and information contained in a return may not be disclosed except as required by law.
               </p>
            		
            <p class="b0">
               The return may be filed by personal delivery to the tax assessor or by United States
               mail. Returns submitted by mail shall be deemed to be filed as of the date shown on
               the postmark affixed by the United States Postal Service. If no date is shown on the
               postmark, or if the postmark is not affixed by the United States Postal Service, the
               return shall be deemed to be filed when received in the office of the tax assessor.
               The burden of proof shall be on the taxpayer to show that the return was timely filed.
               </p>
            <p class="incr0">
               (f)
               </p>
            		
            <p class="content1">
               <span class="ital">Taxpayer to keep records.</span> The taxpayer shall keep and preserve suitable records of the gross receipts received
               by such taxpayer in the conduct of business and such other books or accounts as may
               be necessary to determine the amount of the tax for which such taxpayer is liable
               under the provisions of this section. It shall be the duty of the taxpayer to keep
               and preserve for a period of three (3) years all such records of gross receipts and
               other books and accounts described. All records, books and accounts herein described
               shall be for examination at all reasonable hours during the day by the tax assessor
               or his duly authorized agent.
               </p>
            		
            <p class="incr0">
               (g)
               </p>
            		
            <p class="content1">
               <span class="ital">Tax assessor to provide forms.</span> The tax assessor shall design, prepare, print and make available to all taxpayers
               operating within the county forms and instructions for filing returns to insure a
               full collection of and an accounting for taxes due. The failure of any taxpayer to
               obtain or receive forms shall not relieve such taxpayer from the payment of the tax
               at the time and in the manner provided.
               </p>
            		
            <p class="incr0">
               (h)
               </p>
            		
            <p class="content1">
               <span class="ital">Situs.</span> The transaction giving rise to the tax herein levied shall be deemed to have occurred
               at the location of the person from whom the customer takes delivery of the vehicle.
               </p>
            		
            <p class="incr0">
               (i)
               </p>
            		
            <p class="content1">
               <span class="ital">Assessment procedure.</span> If the tax assessor discovers that any return or tax is due from a taxpayer, the
               taxpayer shall be notified in writing of the failure to file and of the proposed assessment,
               if known by the tax assessor. The assessment may be made on the best information of
               the tax assessor. A proposed assessment is presumed to be correct. The notice shall
               be delivered either in person or by United States mail sent to the taxpayer's last
               known address. The notice is presumed to have been received by the taxpayer unless
               the taxpayer makes an affidavit to the contrary within ninety (90) days after the
               notice was mailed. If the taxpayer makes this affidavit, the time limitations for
               a request for hearing as hereafter provided apply as if the notice had been delivered
               on the date the taxpayer makes the affidavit.
               </p>
            		
            <p class="b0">
               A taxpayer who objects to the proposed assessment or to the requirement to file a
               return is entitled to a hearing upon written request within thirty (30) days after
               the date the notice was mailed, or within thirty (30) days after the date of personal
               delivery. If no request for a hearing is timely made, the proposed assessment becomes
               final without further notice.
               </p>
            <p class="b0">
               If a taxpayer files a timely request for hearing, the tax assessor shall set a hearing
               date within 90 days, and notify the taxpayer at least ten (10) days prior to the hearing
               date. Within ninety (90) days after the hearing, the tax assessor shall notify the
               taxpayer of the final decision. The taxpayer may then appeal the decision as set forth
               in subsection (k) of this section. The tax assessor shall have no authority to waive
               or compromise any interest or penalty imposed by this section.
               </p>
            <p class="incr0">
               (j)
               </p>
            		
            <p class="content1">
               <span class="ital">Penalties, interest and remedies.</span> The provisions with respect to penalties, interest and remedies applicable to G.S.
               Ch. 105, Subch. VIII (Local Government Sales and Use Tax), as contained in Ch. 105,
               Subch. 1, Article 5 and Article 9, thereof, and the provisions applicable to remedies
               provided by the Machinery Act (G.S. Ch. 105, Subch. II), shall be applicable in like
               manner to the tax levied and collected under this section, to the extent that the
               same are not inconsistent with the provisions hereof.
               </p>
            		
            <p class="b0">
               Without limiting the foregoing, and subject to any changes in the General Statutes
               with respect to penalties, interest and remedies, the following shall be applicable
               with respect to the levy and collection of the taxes imposed herein:
               
               <p class="incr1">
                  (1)
                  </p>
               		
               <p class="content2">
                  Any taxpayer who fails to file a return on the date it is due, determined with regard
                  to any extension of time for filing, shall pay a penalty equal to five (5) percent
                  of the amount of the tax if the failure to file is for not more than one month, with
                  an additional five (5) percent for each additional month, or fraction thereof, during
                  which the failure continues, not exceeding twenty-five (25) percent in the aggregate,
                  or five dollars ($5.00), whichever is greater.
                  </p>
               		
               
               <p class="incr1">
                  (2)
                  </p>
               		
               <p class="content2">
                  Any taxpayer who fails to pay the tax levied herein when due, without intent to evade
                  the tax, shall pay a penalty equal to ten (10) percent of the tax, except that the
                  penalty shall in no event be less than five dollars ($5.00).
                  </p>
               		
               
               <p class="incr1">
                  (3)
                  </p>
               		
               <p class="content2">
                  Taxes shall be payable at par or face amount if paid on or before the filing date
                  as set forth in subsection (e). Taxes paid after the filing date will be delinquent
                  and shall be subject to interest charges. Interest shall accrue at the rate of three-fourths
                  of one (Â¾) percent a month or fraction thereof until the principal amount of the taxes,
                  the accrued interest, and any penalties are paid.
                  </p>
               		
               
               <p class="incr1">
                  (4)
                  </p>
               		
               <p class="content2">
                  When the bank upon which any uncertified check tendered to the tax collector in payment
                  of taxes, penalties or interest returns the check because of insufficient funds or
                  the nonexistence of an account of the drawer, the tax collector shell assess a penalty
                  equal to ten (10) percent of the check, subject to a minimum of one dollar ($1.00)
                  and a maximum of one thousand dollars ($1,000.00).
                  </p>
               		
               
               <p class="incr1">
                  (5)
                  </p>
               		
               <p class="content2">
                  Any taxpayer who willfully attempts, or any person who aids or abets any taxpayer
                  to attempt in any manner to evade or defeat a tax imposed herein or its payment, shall,
                  in addition to other penalties provided by law, be guilty of a Class H felony.
                  </p>
               		
               
               <p class="incr1">
                  (6)
                  </p>
               		
               <p class="content2">
                  Any taxpayer required to collect, withhold, account for, and pay over any tax who
                  willfully fails to collect or truthfully account for and pay over the tax shall, in
                  addition to other penalties provided by law, be guilty of a Class 1 misdemeanor.
                  </p>
               		
               
               <p class="incr1">
                  (7)
                  </p>
               		
               <p class="content2">
                  Any taxpayer required to pay any tax, to make a return, to keep any records, or to
                  supply any information, who willfully fails to pay the tax, make the return, keep
                  the records, or supply the information, at the time or times as required by law, or
                  rules issued pursuant thereto, shall, in addition to other penalties provided by law,
                  be guilty of a Class 1 misdemeanor.
                  </p>
               		
               
               <p class="incr1">
                  (8)
                  </p>
               		
               <p class="content2">
                  If a corporation or a limited liability company fails to file any return or pay the
                  tax required for ninety (90) days after it is due, the tax collector shall inform
                  the secretary of state of this failure pursuant to the provisions of G.S. Â§ 105-230.
                  </p>
               		
               
               <p class="incr1">
                  (9)
                  </p>
               		
               <p class="content2">
                  The tax collector shall have the rights of attachment and garnishment as set forth
                  in G.S. Â§Â§ 105-242 or 105-368 in enforcing the collection of taxes imposed herein,
                  and any other remedies authorized by law.
                  </p>
               		
               
            <p class="incr0">
               (k)
               </p>
            		
            <p class="content1">
               <span class="ital">Appeals.</span> The county board of commissioners, exercising the powers of the secretary of revenue
               in collecting sales and use taxes, designates the county manager, or his designee,
               to act as deputy for the purpose of compromising or forgiving for good cause shown
               any penalty or additional tax imposed herein, and for conducting any hearings and
               making decisions to determine the validity of a tax imposed by the tax assessor. If
               a taxpayer claims that a tax, additional tax, penalty or interest is excessive, a
               notice of appeal must be filed by the taxpayer within thirty (30) days after the final
               notice of the tax assessor is mailed or personally delivered to the taxpayer as provided
               in subsection (i) of this section. The final decision of the deputy shall be made
               and mailed or delivered to the taxpayer within thirty (30) days after the hearing.
               The taxpayer shall pay the tax, additional tax, penalty or interest without prejudice
               to any defense the taxpayer has. The taxpayer may file suit for a refund in the superior
               court of the county pursuant to the provisions of G.S. Â§ 105-267.
               </p>
            		
            <p class="historynote0">
               (Ord. of 6-20-00, Â§Â§ 1â€”11)
               </p></div>