GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE JOINT RESOLUTION 696

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Sponsors: Representative Gamble.

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Referred to:  Rules, Appointments and Calendar.

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April 11, 1991

A JOINT RESOLUTION AUTHORIZING THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE PRESENT SYSTEM OF REGULATING AND TAXING BANKS, SAVINGS INSTITUTIONS, AND CREDIT UNIONS.
Whereas, the members of the North Carolina General Assembly are keenly aware of changes currently taking place with regard to the operational and organizational strategies of  financial institutions in North Carolina; and
Whereas, the laws that deal with regulation and taxation are not uniformly applicable to commercial banks, savings  institutions, and credit unions, as dramatically illustrated in the following table:

STATE AND LOCAL TAXES LEVIED ON BANKS,
SAVINGS INSTITUTIONS, AND CREDIT UNIONS

Banks	Savings	Credit
	Institutions	Unions
I.  Franchise Tax
General business
	franchise
	G.S. 105-122	Taxable	Taxable	Exempt
	($1.50 per $1,000 tax
	base)

II. Corporate Income Tax

G.S. 105-130	Taxable	Taxable	Exempt
7% of State taxable
	income

III. Intangibles Tax (Paid
by the institutions)

Accounts Receivable
	G.S. 105-201	Taxable	Exempt	Exempt
	(25¢ per $100.00)
      
	Notes Receivable, etc.
	G.S. 105-202	Taxable	Exempt	Exempt
	(25¢ per $100.00)

Shares of Stock
	G.S. 105-203	Taxable	Exempt	Exempt

IV. License Tax

Annual privilege tax
	G.S. 105-102.3	Taxable	Exempt	Exempt
	($30.00 per $1,000,000
	of average total
	assets)

V.  Sales and Use Tax	Taxable	Taxable	Taxable

VI. Ad Valorem Tax	Taxable	Taxable	Taxable; and

Whereas, the General Assembly has created and provided for separate and autonomous regulatory bodies in the Banking Commission, the Savings Institutions Commission, and the Credit Union Commission, all with separate and express jurisdictional responsibilities none of which have an overall authority to develop a State policy for regulation and taxation; and
Whereas, the public interest dictates the need for a legislative review of the entire industry, with emphasis upon regulation and taxation;
Now, therefore, be it resolved by the House of Representatives, the Senate concurring:
Section 1.  The Legislative Research Commission may study the present regulations and taxes applicable to commercial banks, savings institutions, and credit unions.
Sec. 2.  The Legislative Research Commission shall report its findings, together with any recommended legislation, to the 1993 General Assembly.
Sec. 3.  This resolution is effective upon ratification.