GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1348

Short Title:  Deduction for Net Capital Gains.	(Public)

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Sponsors: Representatives Shubert, Cansler; Allen, Baker, Berry, Brown, Davis, Eddins, Hardy, Hiatt, Hurley, McComas, Morris, Rayfield, Sexton, and Warner.

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Referred to:  Finance.

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May 20, 1998

A BILL TO BE ENTITLED
AN ACT TO REDUCE THE AMOUNT OF NET CAPITAL GAINS SUBJECT TO STATE INCOME TAX FOR ASSETS ACQUIRED ON OR AFTER JANUARY 1, 1999.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-130.5(b) is amended by adding a new subdivision to read:
"(17)	The amount of income reported as net capital gain under the Code with respect to any capital asset acquired on or after January 1, 1999, is reduced by the applicable percentage based on the period the taxpayer held the asset:
Held More Than	Percentage Reduced
One Year	10%
Two Years	20%
Three Years	30%
Four Years	40%
Five Years	50%
Six Years	60%
Seven Years	70%
Eight Years	80%
Nine Years	90%
Ten Years	100%."
Section 2.  G.S. 105-134.6(b)is amended by adding a new subdivision to read:
"(15)	The amount of income reported as net capital gain under the Code with respect to any capital asset acquired on or after January 1, 1999, is reduced by the applicable percentage based on the period the taxpayer held the asset:
Held More Than	Percentage Reduced
One Year	10%
Two Years	20%
Three Years	30%
Four Years	40%
Five Years	50%
Six Years	60%
Seven Years	70%
Eight Years	80%
Nine Years	90%
Ten Years	100%."
Section 3.  This act becomes effective for taxable years beginning on or after January 1, 2000.