2022 Excise Tax Law Changes

This section was added requiring persons filing a report in accordance with 15 U.S.C. § 376 (commonly referred to as PACT Act reports) to file in the form prescribed by the Secretary.

(Effective June 29, 2022; HB 83, s. 4.1, S.L. 2022-13.)

This subdivision was amended to incorporate the most recent version of the Articles of Agreement adopted by the International Fuel Tax Association, Inc. (“IFTA”) As amended, the statute incorporates the IFTA Articles of Agreement as of January 1, 2022.

(Effective June 29, 2022; HB 83, s. 4.2., S.L. 2022-13.)

This section was amended implementing changes to the filing frequency for off-highway use motor fuel refund claims.

Specifically, subsection (d) added a quarterly refund provision for off-highway use of motor fuel. The refund provision for off-highway use of motor fuel was previously in G.S. 105-449.107(a), which provided for an annual off-highway use refund. For purchases of motor fuel on or after January 1, 2023, a person may file a quarterly claim for refund when a person “purchases and uses [excise-tax-paid] motor fuel for a purpose other than to operate a licensed highway vehicle” during the preceding quarter. The record keeping requirements for substantiating an off-highway refund remain the same as required under 17 NCAC 12B .0404.

Subsection (c) was also amended making corresponding technical changes by removing reference to G.S. 105-449.107(c), which was repealed. Motor fuel refunds for special mobile equipment remain subject to sales tax in accordance with the newly enacted G.S. 105-447.107A.

The catch line was updated to reflect the addition of off-highway use refunds to this section and also removed reference to a previously repealed refund provision regarding taxicabs.

(Effective January 1, 2023, and applies to purchases of motor fuel on or after that date; HB 103, s. 42.4.(a), S.L. 2022-74.)

This section was amended to implement changes to the filing frequency for off-highway use motor fuel refund claims. Previously, pursuant to G.S. 105-449.107(a), persons could submit an annual refund claim for off-highway use of motor fuel. For purchases of motor fuel on or after January 1, 2023, persons may submit a quarterly refund claim for off-highway use of motor fuel under G.S. 105-449.106(d).

Specifically, subsections (a) and (c) of this section were repealed. Subsection (a) contained the language for annual off-highway use refunds, and similar language was enacted in G.S. 105-449.106(d). Subsection (c) contained the language for calculating the sales tax due on motor fuel refunds, and substantially similar language was enacted in G.S. 105-449.107A(a).

The catch line was also amended removing reference to annual off-highway use refunds. As amended, G.S. 105-449.107 now applies to “[a]nnual refunds for certain vehicles with power attachments.”

(Effective January 1, 2023, and applies to purchases of motor fuel on or after that date; HB 103, s. 42.4.(b)-(c), S.L. 2022-74.)

The section was added to replace the repealed G.S. 105-449.107(c), which calculated the sales tax due on certain motor fuel refunds. Subsection (a) is substantially similar to the repealed G.S. 105-449.107(c). Subsection (b) clarifies that all the following motor fuel refunds are subject to sales tax as determined under subsection (a):

1. Special mobile equipment pursuant to G.S. 105-449.106(c). 
2. Refunds for off-highway use pursuant to G.S. 105-449.106(d). 
3. Refunds for eligible vehicles with power attachments pursuant to G.S. 105- 449.107.

(Effective January 1, 2023, and applies to purchases of motor fuel on or after that date; HB 103, s. 42.4.(d), S.L. 2022-74.)