GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	1 

SENATE BILL 1458

Short Title:  Food Tax Credit.	(Public)

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Sponsors: Senators Martin of Guilford; Hoyle, Rand, and Gulley.

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Referred to:  Finance.

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June 3, 1996

A BILL TO BE ENTITLED
AN ACT TO ALLOW A FOOD TAX CREDIT FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.
The General Assembly of North Carolina enacts:
Section 1.  Division II of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-151.26.  Credit for sales tax paid on food.
(a)	Credit. – An individual whose adjusted gross income (AGI), as calculated under the Code, is less than the amount listed below is allowed as a credit against the tax imposed by this Division an amount equal to twenty dollars ($20.00) times the number of personal exemptions the taxpayer claims for the taxable year:
Filing Status	AGI
Married, filing jointly	$25,000
Head of Household	 20,000
Single	 15,000
Married, filing separately	 12,500
(b)	Restrictions. – A part-year resident who claims the credit allowed by this section shall reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105-134.5(b) or (c), as appropriate.  The following taxpayers may not claim the credit allowed by this section:
(1)	A nonresident.
(2)	An individual who received assistance under the Food Stamp Program, 7 U.S.C. § 51, for the entire taxable year.
(3)	An individual who was an inpatient at a hospital facility, as defined in G.S. 131E-16, for at least half the taxable year.
(4)	An individual who was in jail or in other official detention for at least half the taxable year.
(5)	An individual who may be claimed as a dependent by another under section 151(c)(1)(B) of the Code.
(c)	Credit Refundable. – If the credit allowed by this section exceeds the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowable, the Secretary shall refund the excess to the taxpayer.  The refundable excess is governed by the provisions governing a refund of an overpayment by the taxpayer of the tax imposed in this Division.  In computing the amount of tax against which multiple credits are allowed, nonrefundable credits are subtracted before refundable credits."
Sec. 2.  G.S. 105-151.26(a), as enacted by Section 1 of this act, reads as rewritten:
"(a)	Credit. – An individual whose adjusted gross income (AGI), as calculated under the Code, is less than the amount listed below is allowed as a credit against the tax imposed by this Division an amount equal to forty dollars ($40.00) times the number of personal exemptions the taxpayer claims for the taxable year:
Filing Status	AGI
Married, filing jointly	$25,000 
Head of Household	 20,000 
Single	 15,000 
Married, filing separately	12,500".
Sec. 3.  Section 2 of this act is effective for taxable years beginning on or after January 1, 1997.  The remainder of this act is effective for taxable years beginning on or after January 1, 1996.