§ 159B-27. Taxes; payments in lieu of taxes.
§ 159B‑27. Taxes; payments in lieu of taxes.
(a) A project jointly owned by municipalities or owned by ajoint agency shall be exempt from property taxes; provided, however, that eachmunicipality possessing an ownership share of a project, and a joint agencyowning a project, shall, in lieu of property taxes, pay to any governmentalbody authorized to levy property taxes the amount which would be assessed astaxes on real and personal property of a project if such project were otherwisesubject to valuation and assessment by the Department of Revenue. Such paymentsin lieu of taxes shall be due and shall bear interest if unpaid, as in thecases of taxes on other property. Payments in lieu of taxes made hereundershall be treated in the same manner as taxes for purposes of all procedural andsubstantive provisions of law. Any administrative building and associated landshall be deemed a project for purposes of this paragraph.
(b) Each municipality having an ownership share in a projectshall pay to the State in lieu of an annual franchise or privilege tax anamount equal to three and twenty‑two hundredths percent (3.22%) of thatpercentage of all moneys expended by said municipality on account of itsownership share, including payment of principal and interest on bonds issued tofinance such ownership share, which is equal to the percentage of such city ortown's total entitlement that is used or sold by it to any person, firm orcorporation exempted by law from the payment of the tax on gross receipts pursuantto G.S. 105‑116.
(c) In lieu of an annual franchise or privilege tax, each jointagency shall pay to the State an amount equal to three and twenty‑twohundredths percent (3.22%) of the gross receipts from sales of electric poweror energy, less receipts from sales of electric power or energy to a vendeesubject to tax under G.S. 105‑116.
(d) The State shall distribute to cities and towns which receiveelectric power and energy from their ownership share of a project or to whichelectric power and energy is sold by a joint agency an amount equal to a tax ofthree and nine hundredths percent (3.09%) of all moneys expended by amunicipality on account of its ownership share of a project, including paymentof principal and interest on bonds issued to finance such ownership share, oran amount equal to a tax of three and nine hundredths percent (3.09%) of thegross receipts from all sales of electric power and energy to such city or townby a joint agency, as the case may be. The General Assembly finds that the revenuedistributed under this section is local revenue, not a State expenditure, forthe purpose of Section 5(3) of Article III of the North Carolina Constitution.Therefore, the Governor may not reduce or withhold the distribution.
(e) The reporting, payment and collection procedures containedin G.S. 105‑116 shall apply to the levy herein made.
(f) Except as herein expressly provided with respect to jointlyowned projects or projects owned by a joint agency, no other property of amunicipality used or useful in the generation, transmission and distribution ofelectric power and energy shall be subject to payments in lieu of taxes. (1973, c. 476, s. 193; 1975, c. 186, s. 1; 1977, c. 385, s. 12; 1981,c. 487; 1983, c. 574, s. 10; 1983 (Reg. Sess., 1984), c. 1097, s. 11; 1995, c.412, s. 17; 2002‑120, s. 6.)