GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 697

Short Title:  Tax Military Same as Federal Law.	(Public)
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Sponsors: Senators Raynor and Tally.
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Referred to:  Finance.
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April 18, 1991

A BILL TO BE ENTITLED
AN ACT TO CONFORM THE TAX TREATMENT OF ARMED FORCES PERSONNEL AND CERTAIN OTHER INDIVIDUALS TO FEDERAL LAW.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-249.2 reads as rewritten:
"§ 105-249.2. Due date and penalties for State taxes owed by certain members of the armed forces or individuals serving in support of the armed forces.
The Secretary may not assess interest or a penalty against a taxpayer for any period that is disregarded under section 7508 of the Code, as amended by Pub. L. No. 102-2, in determining the taxpayer's liability for a federal tax.  A taxpayer is granted an extension of time to file a return or take another action concerning a State tax for any period during which the Secretary may not assess interest or a penalty under this section."
Sec. 2.  G.S. 105-158 reads as rewritten:
"§ 105-158.  Taxation of certain armed forces personnel and other individuals upon death; interest payable on refunds due certain armed forces personnel and other individuals serving in support of the armed forces.
							”(a)	Death. – An individual is not subject to the tax imposed by this Division for a taxable year if, under section 692 of the Code, the individual is not subject to federal income tax for that same taxable year.
(b)	Interest. –  An individual who is entitled under section 7508 of the Code, as amended by Pub. L. No. 102-2, to interest on the individual's federal income tax refund is entitled to interest on an income tax refund due the individual under this Division for the same taxable year.  Interest required to be paid under this section on an income tax refund accrues from the date the income tax return was due under G.S. 105-155 until the refund is made and is payable at the rate established in G.S. 105-241.1(i) for assessments."
Sec. 3.  This act is effective upon ratification and applies retroactively as of August 2, 1990.