GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

S                                                                                                                                                     1

SENATE BILL 752

Short Title:        Eliminate Double-Weighted Sales Apportionment.		(Public)
Sponsors:	Senator Mansfield.
Referred to:	Finance.

April 20, 2011

A BILL TO BE ENTITLED

AN ACT to modify the apportionment formula for income tax by eliminating the double weighting of the sales factor.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105-130.4(i) reads as rewritten:

"(i)        All apportionable income of corporations other than public utilities, excluded corporations, and qualified capital intensive corporations shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus twice the sales factor, and the denominator of which is four.three. If one of the sales factorfactors does not exist, the denominator of the fraction is the number of existing factors and if the sales factor exists but the payroll factor or the property factor does not exist, the denominator of the fraction is the number of existing factors plus one.factors.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2011.