GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 1259

Short Title:  Refund Federal Retirees.	(Public)

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Sponsors: Representatives Grady, Morgan; Allred, Bowie, Cansler, Cocklereece, Culp, Hurley, Nichols, Preston, J. Robinson, Sexton, Sharpe, and Sherrill.

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Referred to:  Rules, Calendar and Operations of the House.

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May 21, 1996

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FEDERAL RETIREES REFUNDS, WITHOUT INTEREST, FOR STATE INCOME TAX PAID ON THEIR RETIREMENT BENEFITS FOR TAX YEARS 1985 THROUGH 1988.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-151.20 reads as rewritten:
"§ 105-151.20.  Refund for tax paid on certain government retirement benefits.
	(a)	Purpose; Definitions. – The purpose of this section is to benefit certain retired federal government workers on account of their public service.  The following definitions apply in this section:
(1)	Federal retirement benefits. – Retirement benefits received from one or more federal government retirement plans.
(2)	Net pension tax. – The amount of tax a taxpayer paid under this Division for the 1985, 1986, 1987, and 1988 tax years on federal retirement benefits, without interest, less any part of the tax for which the taxpayer received a credit under this section and any part of the tax previously refunded to the taxpayer.
(3)	Tax year. – The taxpayer's taxable year beginning on a day in the applicable calendar year.
(b)	Request for Refund. – Notwithstanding the time limitations of G.S. 105-267, and subject to the conditions set in this section, if on or before April 15, 1997, a taxpayer or the representative of the estate of a deceased taxpayer requests a refund of the taxpayer's net pension tax, that request shall be timely for the purposes of G.S. 105-267.  Notwithstanding the provisions of G.S. 105-266, refunds pursuant to this section that would otherwise be barred by G.S. 105-267 shall bear no interest.
(c)	Procedure. – The Secretary shall print on the individual income tax instructions for the 1996 tax year a prominent notice of the right to refunds authorized by this section and the procedure for requesting a refund.  The Secretary shall also circulate copies of this notice among organizations and individuals the Secretary considers likely to be affected by this section.  The Secretary shall verify the amount of each refund requested and pay the refund to the taxpayer as soon as possible after it is requested.  The Secretary shall draw the refunds paid under this section from the Savings Reserve Account established pursuant to G.S. 143-15.3."
Sec. 2.  Effective January 1, 1999, G.S. 105-151.20 is repealed.
Sec. 3.  Section 2 of this act becomes effective January 1, 1999.  The remainder of this act becomes effective July 1, 1996.