GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 244

Short Title:  Reduce Corporate Income Tax.	(Public)

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Sponsors: Representatives Luebke, Arnold, Gamble, Ramsey, and Tallent.

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Referred to:  Finance.

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February 22, 1995

A BILL TO BE ENTITLED
AN ACT TO REDUCE THE CORPORATE INCOME TAX.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-130.3 reads as rewritten:
"§ 105-130.3.  Corporations.
A tax is imposed on the State net income of every C Corporation doing business in this State. An S Corporation is not subject to the tax levied in this section.  The tax is a percentage of the taxpayer's State net income computed as follows:
State Net Income	Tax
Up to $10,000	5%
Over $10,000 up to $25,000	6%
Over $25,000	7%."
Sec. 2.  G.S. 115C-546.1 reads as rewritten:
"§ 115C-546.1.  Creation of Fund; administration.
(a)	There is created the Public School Building Capital Fund.  The Fund shall be used to assist county governments in meeting their public school building capital needs.
(b)	Each calendar quarter, the Secretary of Revenue shall remit to the State Treasurer for credit to the Public School Building Capital Fund an amount equal to one-fourteenth (1/14) of the net collections received during the previous quarter by the Department of Revenue under G.S. 105-130.3 minus two million five hundred thousand dollars ($2,500,000).  All funds deposited in the Public School Building Capital Fund shall be invested as provided in G.S. 147-69.2 and G.S. 147-69.3.
	(c)	The Fund shall be administered by the Office of State Budget and Management."
Sec. 3.  Section 2 of this act becomes effective October 1, 1995, and applies to remittances made on or after that date; the remainder of this act is effective for taxable years beginning on or after January 1, 1995.