NC S13

Converts the sales tax on propane gas into a new 14-cent per gallon excise tax imposed on distributors, effective January 1, 2013, with the tax payable in lieu of sales and use tax.

Exempts propane gas purchased by manufacturers (with manufacturer's certificate), farmers for farming purposes (with farmer's certificate), portable containers of 420 pounds or less on distributor premises, portable containers under 33 pounds delivered to end users, and propane subject to Article 36D taxation.

Requires distributors to file quarterly returns and make monthly tax payments by the 20th of the following month, with prepayment obligations for distributors owing at least $10,000 monthly.

Phases down the excise tax rate from 14 cents per gallon (2013) to 10.8 cents (2014), 7.6 cents (2015), and 4.3 cents (2016), with each reduction effective on January 1 of the specified year.

Exempts propane gas from retail sales and use tax through amendment to G.S. 105-164.13, eliminating dual taxation.