H.B. 1080 - Revenue Laws and Insurance Regulatory Charge

• Updates Internal Revenue Code reference from January 1, 2019 to May 1, 2020 for North Carolina tax purposes, incorporating CARES Act provisions including modifications to interest deductions, charitable contributions, and net operating loss carrybacks.

• Modifies excise taxes on cigarettes and tobacco products by clarifying license requirements, establishing record-keeping standards, and updating procedures for license cancellation and revocation.

• Changes sales and use tax provisions effective July 1, 2020 including marketplace facilitator thresholds, digital property taxation, and local meals tax definitions for counties and cities.

• Establishes insurance regulatory charge rate at 6.5% and requires annual legislative approval, replacing prior system while maintaining Department of Revenue budget oversight and reserve fund limits.

• Transfers $36 million in nonrecurring funds from Medicaid Transformation Reserve to General Fund for 2020-2021 fiscal year, effective July 1, 2020.