GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	1 

SENATE BILL 1271*

Short Title:  Phase Down Corporate Income Tax.	(Public)

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Sponsors: Senators Hoyle; and Plexico.

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Referred to:  Finance.

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May 23, 1996

A BILL TO BE ENTITLED
AN ACT TO REDUCE THE CORPORATE INCOME TAX FROM SEVEN AND THREE-FOURTHS PERCENT TO SIX AND THREE-FOURTHS PERCENT OVER A FOUR-YEAR PERIOD.
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:
Income Years Beginning	Tax
In 1997	7.5%
In 1998	7.25%
In 1999	7%
After 1999	6.25%"
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 the applicable proportion provided in the table below 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.
Period	Proportion
10/1/97 to 9/30/98	One-fifteenth (1/15)
10/1/98 to 9/30/99	Two twenty-ninths (2/29)
10/1/99 to 9/30/00	One-fourteenth (1/14)
After 9/30/00	Two twenty-sevenths (2/27)
	(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, 1997, 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, 1997.