GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1236

Short Title:  Redefine Distressed County.	(Public)
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Sponsors: Representatives Rogers; and H. Hunter.
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Referred to:  Finance.
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May 10, 1991

A BILL TO BE ENTITLED
AN ACT TO EXPAND THE CRITERIA FOR DESIGNATION AS A DISTRESSED COUNTY FOR INCOME TAX PURPOSES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-130.40(c) reads as rewritten:
"(c)	County Designation. – A severely distressed county is a county designated as such by the Secretary of Economic and Community Development.  Each year, on or before December 31, the Secretary of Economic and Community Development shall designate which counties are considered severely distressed, and shall provide that information to the Secretary of Revenue.  A county is considered severely distressed if more than twenty-five percent (25%) of its population is receiving assistance under the Aid to Families with Dependent Children program.  In addition, a county is considered severely distressed if its distress factor is one of the twenty-five highest in the State.  The Secretary shall assign to each county in the State a distress factor which is the sum of (1) the county's rank in a ranking of counties by rate of unemployment from lowest to highest and (2) the county's rank in a ranking of counties by per capita income from highest to lowest.  In measuring rates of unemployment and per capita income, the Secretary shall use data from the North Carolina Employment Security Commission and the United States Department of Commerce for the most recent thirty-six month period for which data is available.  A designation as a severely distressed county is effective only for the calendar year following the designation."
Sec. 2.  G.S. 105-151.17(c) reads as rewritten:
"(c)	County Designation. – A severely distressed county is a county designated as such by the Secretary of Economic and Community Development.  Each year, on or before December 31, the Secretary of Economic and Community Development shall designate which counties are considered severely distressed, and shall provide that information to the Secretary of Revenue.  A county is considered severely distressed if more than twenty-five percent (25%) of its population is receiving assistance under the Aid to Families with Dependent Children program.  In addition, a county is considered severely distressed if its distress factor is one of the twenty-five highest in the State.  The Secretary shall assign to each county in the State a distress factor which is the sum of (1) the county's rank in a ranking of counties by rate of unemployment from lowest to highest and (2) the county's rank in a ranking of counties by per capita income from highest to lowest.  In measuring rates of unemployment and per capita income, the Secretary shall use data from the North Carolina Employment Security Commission and the United States Department of Commerce for the most recent thirty-six month period for which data is available.  A designation as a severely distressed county is effective only for the calendar year following the designation."
Sec. 3.  This act is effective for taxable years beginning on or after January 1, 1991.