S557 - Various Finance Law Changes. (SL 2019-246)
Session Year 2019
Overview: S.L. 2019-246 makes the following finance law changes:
- Increases the standard deduction by 7.5%, from $20,000 to $21,500 for MFJ, effective for taxable years beginning on or after January 1, 2020.
- Expands the definition of "holding company" for franchise tax purposes, effective for taxable years beginning on or after January 1, 2020.
- Requires a multistate corporation to calculate its sales factor, for apportionment purposes, based on the percentage of income attributed to the consumption of products and services in the North Carolina marketplace, effective for taxable years beginning on or after January 1, 2020.
- Obligates a "marketplace facilitator" that meets the same threshold applicable to remote retailers to calculate, collect, and remit sales tax on a third-party seller's behalf, effective February 1, 2020.
- Directs the Revenue Laws Study Committee to review certain tax sunset provisions.
- Requires the Department of Revenue to update its electronic tax systems to store and recognize power of attorney registrations to ensure that notices are simultaneously sent to both the taxpayer and the person designated in the taxpayer's power of attorney.