GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1559

Short Title:  Conform with Federal Law.	(Public)

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Sponsors: Representatives Luebke, Allen, Gray, Hill, Jarrell, Miller, Pope, and Tucker.

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Referred to:  Finance.

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May 17, 2000

A BILL TO BE ENTITLED
AN ACT TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE USED IN DEFINING AND DETERMINING CERTAIN STATE TAX PROVISIONS, TO CONFORM TO FEDERAL LAW REGARDING DEADLINES FOR PAYMENTS OF CERTAIN ESTIMATED INCOME TAXES, AND TO CLARIFY THE SALES FACTOR FOR DETERMINATION OF STATE CORPORATE INCOME AND FRANCHISE TAX.The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-228.90(b)(1a) reads as rewritten:
"(b)	Definitions. – The following definitions apply in this Article:
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(1a)	Code. – The Internal Revenue Code as enacted as of January 1, 2000, including any provisions enacted as of that date which become effective either before or after that date."
Section 2.  G.S. 105-163.15(i) reads as rewritten:
"(i)	Notwithstanding subsections (c), (d), (e), and (h) of this section, an individual who is a farmer or fisherman for a taxable year is subject to the provisions of this subsection.
(1)	One installment. – The individual is required to make only one installment payment of tax for that taxable year. This installment is due on or before January 15 of the following taxable year. The amount of the installment payment must be the lesser of:
	a.	Sixty-six and two-thirds percent (66 2/3%) of the tax shown on the return for the taxable year, or, if no return is filed, sixty-six and two-thirds percent (66 2/3%) of the tax for that year; or
	b.	One hundred percent (100%) of the tax shown on the return of the individual for the preceding taxable year, if the preceding taxable year was a taxable year of 12 months and the individual filed a return for that year.
(2)	Exception. – If, on or before March 1 of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable, no addition to tax is imposed under subsection (a) of this section with respect to any underpayment of the required installment for the taxable year.
(3)	Eligibility. – An individual is a farmer or fisherman for any taxable year if the individual's gross income from farming or fishing, including oyster farming, for the taxable year is at least sixty-six and two-thirds percent (66 2/3%) of the total gross income from all sources for the taxable year, or the individual's gross income from farming or fishing, including oyster farming, shown on the return of the individual for the preceding taxable year is at least sixty-six and two-thirds percent (66 2/3%) of the total gross income from all sources shown on the return."
Section 3.  G.S. 105-130.4(a)(7) reads as rewritten:
"(a)	As used in this section, unless the context otherwise requires:
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(7)	"Sales”means all gross receipts of the corporation except for the following receipts:
a.	Receipts from a casual sale of property.
b.	Receipts allocated under subsections (c) through (h) of this section.
c.	Receipts exempt from taxation.
d.	The portion of receipts realized from the sale or maturity of securities or other obligations that represents a return of principal."
Section 4.  Notwithstanding Section 1 of this bill, any amendments to the Internal Revenue Code enacted in 1999 that increase North Carolina taxable income for the 1999 taxable year become effective for taxable years beginning on or after January 1, 2000.  
Section 5.  This act is effective when it becomes law.