S.L. 2013-106:
An Act to Permit Water
Utilities to Adjust Rates for Changes in Costs
Based on Third-Party Rates and to Authorize
the Utilities Commission to Approve A Rate
Adjustment Mechanism for Water and Sewer
Utilities to Recover Costs for Water and
Sewer System Improvements.
S.L. 2013-142:
An Act Requiring Utility
Owners to Locate and Describe Underground
Utilities Upon Written or Oral Request from
a Person Who is Responsible for Designing
or Surveying Underground Facilities
or Requires a General Description and
Location of Existing Underground Facilities
in an Area:
This law, which will be repealed
by S.L. 2013-407 as it takes effect, addresses
system responsibilities when requested to
locate underground utilities for surveyors
and engineers during the design phase of
their projects.
S.L. 2013-150:
An Act to Protect the Fiscal
Health of North Carolina’s Water and Sewer
Systems:
This law provides authority to the
Local Government Commission (LGC) to
impound the books of any local government
or public utility authority to ensure that the
utility/enterprise fund is meeting required
financial performance indicators. If a system
demonstrates that they cannot meet those
indicators, the LGC then has the right to
assume all affairs of the utility.
S.L. 2013-388:
An Act to Establish an
Expedited Process for the Modification of
Interbasin Transfer Certificates and for the
Issuance of Interbasin Transfer Certificates
in the Central Coastal Plain Capacity Use
Area and the Coastal Area Counties and
to Amend S.L. 2013-50, An Act to Promote
the Provision of Regional Water and Sewer
Services by Transferring Ownership and
Operation of Certain Public Water and
Sewer System to a Metropolitan Water and
Sewer District.
S.L. 2013-107:
An Act to Amend the
Statute Governing the Powers of Water and
Sewer Authorities to Allow the Authority to
Set Rates for Water Resources Storage or
Protection Programs.
S.L. 2013-365:
Domestic Energy Jobs
Act
(Short Title): This controversial law
was drafted to direct and give authority to
the Energy and Mining Commission, which
will subsequently oversee underground
gas exploration and withdrawal using
horizontal drilling and hydraulic fracturing
(“fracking”). This legislation followed much
debate and a state commissioned study for
which NCRWA issued written comments
pertaining to our concerns for the protection
and liability associated with the protection of
water resources.
S.L. 2013-340:
OmnibusCountyLegislation
(Short Title): This law amends NCGS 143-
215.1 (
Control of sources of water pollution;
permits required
) by adding a provision that
“prior to acting on a permit application for the
land application of bulk residuals resulting
from the operation of a wastewater treatment
facility, the Commission shall provide notice
and an opportunity for comment from the
governing board of the county in which the
site of the land application of bulk residuals is
proposed to be located.”
S.L. 2013 – 316:
An Act to Simplify
the North Carolina Tax Structure and to
Reduce Individual and Business Tax Rate:
Also known as the
Tax Simplification and
Reduction Act
, this bill is projected to result
in about $86M less in state revenue than
the 2013-2014 fiscal year and about $437M
less in the 2014-2015 fiscal year compared
to revenue levels if no tax changes were
made. The following are some of the more
significant items, in our opinion, that affect
our members:
•
INDIVIDUAL INCOME
TAX CHANGES:
The bill eliminates the three-tier personal
income tax system and replaces them with a
5.8% individual income tax rate for 2014 and
a rate of 5.75% in 2015. Personal exemptions
are eliminated; standard deductions are
increased. Deductions for mortgage interest
and property taxes are capped at $20,000.
Charitable contributions allowed by law are
fully deductible. It is reported that in 2014
the $50,000 deduction from business related
income of an individual will be eliminated.
Credits for the donation of real property
are eliminated.
•
CORPORATE INCOME
TAX CHANGES:
The bill reduces the current corporate income
tax rate of 6.9% to 6% in 2014 and to 5%
in 2015. If revenue targets are met further
changes could result to reduce the corporate
rate down to 3% in 2017.
•
SALES TAX CHANGES:
The bill does not tax professional services.
Exemptions from sales tax for nutritional
supplements sold by chiropractors, for certain
meals sold by non-profits and for newspapers
are repealed. Other sales tax exemptions are
either not repealed or are preserved in other
provisions of the bill. Sales tax is applied
to service contracts and to entertainment
activities and amusements.
There is an exemption for a service contract
for tangible personal property that is provided
for any of the following: an item exempt
from tax under this article other than an item
exempt from tax (motor vehicles), and for
transmission, distribution or other network
asset contained on utility owned land, right-
of-way or easement. An additional exemption
from this tax, for a newly constructed building
or structure, is not carried forward into this
bill from prior versions.
The bill does not eliminate the exemptions
in current law for water delivered by or
through mainlines or pipes for commercial
or domestic use or consumption.
The bill
does not repeal the franchise tax on a water
company subject to North Carolina Utilities
Commission regulation on a public sewage
company engaged in owning or operating a
public sewage company.
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NCRWA.COM |
Fall 2013
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