GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 1575

Short Title:  Income Tax Surtax.	(Public)
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Sponsors: Senators Martin of Guilford; and Marvin.
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Referred to:  Finance.
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June 6, 1990

A BILL TO BE ENTITLED
AN ACT TO LEVY AN INDIVIDUAL INCOME TAX SURTAX OF FOUR-TENTHS OF ONE PERCENT IN ORDER TO GENERATE FUNDS FOR EDUCATIONAL EQUITY GRANTS AND FOR STATE PROGRAMS RELATING TO HEALTH, SOCIAL SERVICES, NEED-BASED SCHOLARSHIPS, AND INDIGENT COUNSEL FEES.
The General Assembly of North Carolina enacts:
Section 1.  Division II of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-134.2A.  Income tax surtax.
In addition to the income tax imposed by G.S. 105-134.2, every taxpayer required to file a return under this Division shall pay an income tax surtax equal to four-tenths of one percent (0.4%) of the tax payable by the taxpayer under G.S. 105-134.2 for the taxable year.  This surtax is due at the time prescribed for filing income tax returns in G.S. 105-155."
Sec. 2.  G.S. 105-160.2 reads as rewritten:
"§ 105-160.2.  Imposition of tax.
(a)	The tax imposed by this Division shall apply to the taxable income of estates and trusts as determined under the provisions of the Code except as otherwise provided in this Division.  The taxable income of an estate or trust shall be the same as taxable income for such an estate or trust under the provisions of the Code, adjusted as provided in G.S. 105-134.6 and G.S. 105-134.7, except that the adjustments provided in G.S. 105-134.6 and G.S. 105-134.7 shall be apportioned between the estate or trust and the beneficiaries based on the distributions made during the taxable year.  The tax shall be computed at the following percentages of an amount equal to the taxable income multiplied by a fraction, the numerator of which is the estate or trust's gross income from North Carolina sources, plus the gross income from sources outside of the State and from intangible sources which is for the benefit of a resident of this State, and the denominator of which is the estate or trust's gross income as calculated under the Code.  For purposes of the preceding sentence, taxable income and gross income shall be computed subject to the adjustments provided in G.S. 105-134.6 and G.S. 105-134.7.  The tax shall be at six percent (6%) on the first twelve thousand seven hundred fifty dollars ($12,750) of the amount computed above; and at seven percent (7%) of the excess of the amount computed above over twelve thousand seven hundred fifty dollars ($12,750).  The tax computed under the provisions of this Division shall be paid by the fiduciary responsible for administering the estate or trust.
(b)	In addition to the income tax due under subsection (a), every estate and trust required to file a return under this Division shall pay an income tax surtax equal to four-tenths of one percent (0.4%) of the amount of income tax payable by the estate or trust to the State for the taxable year.  This surtax is due at the time prescribed for filing income tax returns in this section."
Sec. 3.  Notwithstanding G.S. 105-163.15, no addition to tax may be made under that statute for a taxable year beginning on or after January 1, 1990, and before January 1, 1991, with respect to an underpayment of individual income tax to the extent the underpayment was created or increased by this act.
Sec. 4.  This act is effective for taxable years beginning on or after January 1, 1990.