GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	2 

HOUSE BILL 1318
Committee Substitute Favorable 6/3/98

Short Title:  Modify Nonresident Withholding.	(Public)

─────────────────────────────────────── 
Sponsors:

─────────────────────────────────────── 
Referred to:  

─────────────────────────────────────── 

May 19, 1998

A BILL TO BE ENTITLED
AN ACT TO LIMIT THE NONRESIDENT WITHHOLDING REQUIREMENT TO ATHLETES AND ENTERTAINERS AND TO INCREASE THE THRESHOLD REQUIREMENT FOR NONRESIDENT WITHHOLDING.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-163.1(2) reads as rewritten:
"(2)	Contractor. – Either of the following: 
a.	A nonresident individual who performs in this State for compensation other than wages any personal services in connection with a performance, an entertainment, an athletic event, a speech, or the creation of a film or television program.
b.	A nonresident entity that provides for the performance in this State for compensation of any personal services in connection with a performance, an entertainment, an athletic event, a speech, or the creation of a film or television program."
Section 2.  Section 4 of S.L. 1997-109 is repealed.
Section 3.  G.S. 105-163.3(a) reads as rewritten:
"(a)	Requirement. – Every payer who pays a contractor more than five thousand dollars ($5,000) during a calendar year shall deduct and withhold from compensation paid to a contractor the State income taxes payable by the contractor on the compensation as provided in this section.  The amount of taxes to be withheld is four percent (4%) of the compensation paid to the contractor.  The taxes a payer withholds are held in trust for the Secretary."
Section 4.  This act is effective retroactively as of January 1, 1998.  Notwithstanding Sections 1, 2, and 3 of this act, any tax withheld under G.S. 105-163.3 may be repaid to the person from whom the tax was withheld only as provided in G.S. 105-163.3(f).