H 1026 - Revenue Laws Technical, Clarifying, and Administrative Changes

• Updates North Carolina tax code references to the Internal Revenue Code as of January 1, 2012, and clarifies that IRC amendments after January 1, 2011 that increase taxable income apply to 2012 and later tax years.

• Modifies sales tax exemptions and definitions, including changes to motor fuel tax treatment, installation and delivery charges, over-the-counter drug definitions, and sourcing rules for product sales.

• Allows use of irrevocable letters of credit as alternative to bonds for wholesale and retail dealers, increases motor fuel prepayment thresholds from $10,000 to $20,000 monthly liability, and revises direct pay permit requirements for telecommunications services.

• Transfers administration of the State Home Foreclosure Prevention Project from the Commissioner of Banks to the Housing Finance Agency, effective December 1, 2012.

• Delays implementation of integrated motor vehicle registration and property tax collection system changes from July 1, 2011 to July 1, 2013, and modifies appeal procedures and tax treatment for unregistered classified motor vehicles.