GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 830

Short Title:  Equalize Death Tax Credit.	(Public)

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Sponsors: Representatives Black; and Wilkins.

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Referred to:  Finance.

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April 11, 1995

A BILL TO BE ENTITLED
AN ACT TO EXTEND THE INHERITANCE TAX CREDIT TO APPLY TO CLASS B AND CLASS C BENEFICIARIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-4(b) is recodified as G.S. 105-6.1.
Sec. 2.  G.S. 105-6.1, as recodified by this act, reads as rewritten:
"§ 105-6.1.  Inheritance tax credit.
An inheritance tax credit in the amount specified in the following table is allowed against the tax imposed by this Article on the transfer of property.
For Decedents Dying on or After	Amount of Credit

August 1, 1985 	$  2,350
July 1, 1986 	8,150
January 1, 1987 	14,150
January 1, 1988 	20,150
January 1, 1989 	26,150

This credit is allowed to beneficiaries in the following order:
(1)	Children who are less than 18 years old, and children who are at least 18 years old and who are single, are unable to support themselves because of mental or physical incapacity, and either are members of the decedent's household or, because of their mental or physical incapacity, live in an institution.
	(2)	Other Class A beneficiaries.
(3)	Class B beneficiaries.
(4)	Class C beneficiaries who are related to the decedent by blood or marriage.
(5)	Other Class C beneficiaries.
The status of a beneficiary is determined as of the date of the decedent's death. When two or more beneficiaries are equally entitled to the credit, the credit shall be allocated among those beneficiaries on a pro rata basis according to their tax liability. The credit allowed by this section may not exceed the amount of tax imposed by this Article."
Sec. 3.  This act is effective upon ratification and applies to the estates of decedents dying on or after January 1, 1995.