GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2009

S                                                                                                                                                     1

SENATE BILL 1426

Short Title:        Lower Corporate Income Tax Rate.		(Public)
Sponsors:	Senator Brock.
Referred to:	Finance.

May 26, 2010

A BILL TO BE ENTITLED

AN ACT to reduce the corporate income tax rate.

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 percentagefive percent (5%) 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 6.9%.income."

SECTION 2.  G.S. 105-130.3B is repealed.

SECTION 3.  G.S. 115C-546.1(b) reads as rewritten:

"(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 fraction provided in the table below five fiftieths (5/50) of the net collections received during the previous quarter by the Department of Revenue under G.S. 105-130.3. 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 Fraction

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 Five sixty-ninths (5/69)"

SECTION 4.  Sections 1 and 2 of this act are effective for taxable years beginning on or after January 1, 2010.  Section 3 of this act is effective July 1, 2010, and applies to the calendar quarter that ends September 30, 2010.  The remainder of this act is effective when it becomes law.