GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 972

Short Title:  Refund Federal Retirees in 4 Years.	(Public)

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Sponsors: Representatives Grady; Cansler, Gardner, Hensley, McComas, McMahan, Morgan, Nichols, Preston, Pulley, Russell, Sexton, Snowden, and Watson.

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Referred to:  Finance.

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April 12, 1995

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FEDERAL RETIREES REFUNDS IN FOUR ANNUAL INSTALLMENTS, WITHOUT INTEREST, FOR 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.
	Notwithstanding the time limitations of G.S. 105-267, and subject to the conditions set in this section, if on or before April 15, 1996, an individual or the representative of the estate of a deceased individual demands a refund of the tax paid under Article 4 of Chapter 105 of the General Statutes on federal government retirement benefits for a taxable year beginning on or after January 1, 1985, and before January 1, 1989, that demand shall be timely for the purposes of G.S. 105-267.  The amount of a refund under this section for the 1988 tax year shall be reduced by the total amount of credit previously allowed the individual under this section.  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.
The Secretary shall pay each refund due under this section in four equal, annual installments.  The first installment shall be paid on July 1, 1995, or within 90 days after the demand for the refund was made, whichever is later.  The three subsequent installments shall be paid on July 1, 1996, July 1, 1997, and July 1, 1998, respectively."
Sec. 2.  Effective January 1, 2000, G.S. 105-151.20 is repealed.
Sec. 3.  This act is effective upon ratification.