§ 119-18. Inspection tax and distribution of the tax proceeds.
§ 119‑18. Inspectiontax and distribution of the tax proceeds.
(a) Tax. Aninspection tax of one fourth of one cent (1/4 of 1¢) per gallon is levied uponall of the fuel listed in this subsection regardless of whether the fuel isexempt from the per‑gallon excise tax imposed by Article 36C or 36D ofChapter 105 of the General Statutes. The inspection tax on motor fuel is dueand payable to the Secretary of Revenue on the date the per gallon excise taxon motor fuel is due and payable under Article 36C of Chapter 105 of theGeneral Statutes. The inspection tax on alternative fuel is due and payable tothe Secretary of Revenue on the date the excise tax on alternative fuel is dueand payable under Article 36D of Chapter 105 of the General Statutes. The inspectiontax on kerosene is payable monthly to the Secretary by a supplier that islicensed under Part 2 of Article 36C of Chapter 105 of the General Statutes andby a kerosene supplier. A monthly report is due on the date a monthly return isdue under G.S. 105‑449.90 and applies to kerosene sold during thepreceding month by a supplier licensed under that Part and to kerosene receivedduring the preceding month by a kerosene supplier. A kerosene terminal operatormust file a return in accordance with the provisions of G.S. 105‑449.90.The inspection tax on jet fuel and aviation gasoline is payable as specified bythe Secretary of Revenue.
(1) Motor fuel.
(2) Alternative fuelused to operate a highway vehicle.
(3) Kerosene.
(4) Jet fuel.
(5) Aviation gasoline.
(a1) Deferred Payment. Alicensed kerosene distributor that buys kerosene from a supplier licensed underPart 2 of Article 36C of Chapter 105 of the General Statutes has the right todefer payment of the inspection tax until the supplier is required to remit thetax to this State or another state. A licensed kerosene distributor that paysthe tax due a supplier licensed under that Part by the date the supplier mustpay the tax to the State may deduct from the amount due a discount in theamount set in G.S. 105‑449.93.
(b) Proceeds. Theproceeds of the inspection tax levied by this section shall be applied first tothe costs of administering this Article and Subchapter V of Chapter 105 of theGeneral Statutes. The remainder of the proceeds shall be credited on a monthlybasis to the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fundand the Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Fund.If the amount of revenue in the Noncommercial Fund at the end of a month is atleast five million dollars ($5,000,000), one‑half of the remainder of theproceeds shall be credited to the Noncommercial Fund and one‑half of theremainder of the proceeds shall be credited to the Commercial Fund. If theamount of revenue in the Noncommercial Fund at the end of a month is less thanthis threshold amount, all of the remainder of the proceeds shall be creditedto the Noncommercial Fund.
(c) No Local Tax. Nocounty, city, or town shall impose any inspection charge, tax, or fee, in thenature of the charge prescribed by this section, upon kerosene and motor fuel. (1917, c. 166, s. 4; C.S.,s. 4856; 1933, c. 544, s. 5; 1937, c. 425, s. 5; 1967, c. 1110, s. 12; 1973, c.476, s. 193; 1985, c. 602, s. 2; 1991, c. 636, s. 12; 1991 (Reg. Sess., 1992),c. 913, s. 12; 1993, c. 402, s. 8; 1995, c. 390, s. 23; 1995 (Reg. Sess.,1996), c. 647, s. 55; 2003‑349, ss. 10.15, 10.16; 2006‑162, s.15(e); 2008‑134, s. 60.)