GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 439
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-249.2 reads as rewritten:
"§ 105-249.2. State
Due date and penalties for State taxes owed by certain members
of the armed forces; no interest or penalty to accrue while in combat
zone. forces or individuals serving in support of the armed forces.
Whenever any tax imposed by the State under the provisions
of this Chapter is owed by any member of the armed forces of the United States
who is serving in a combat zone, as the same is hereinafter defined, or who is
hospitalized as a result of wounds, disease or injury incurred by serving in a
combat zone during a period of induction, there shall be no interest or penalty
assessed for taxes due during the period in which such member of the armed
forces is in such combat zone, or is hospitalized as a result of wounds,
disease or injury incurred while serving in such combat zone.
Combat zone is hereby defined as an area which the
President of the United States by executive order has designated as an area in
which the armed forces of the United States are, or have been, engaged in
combat. The provisions of this section shall apply to any month or months
during any part of which such member of the armed services served in a combat
zone during an induction period; except that this section shall not apply for
any month during any part of which there was no combat activities in the combat
zone. The Secretary may not assess interest or a penalty against a
taxpayer for any period that is disregarded under section 7508 of the Code, as
amended by Pub. L. No. 102-2, in determining the taxpayer's liability for a
federal tax. A taxpayer is granted an extension of time to file a return
or take another action concerning a State tax for any period during which the
Secretary may not assess interest or a penalty under this section."
Sec. 2. G.S. 105-158 reads as rewritten:
"§ 105-158.
Abatement of income taxes of certain members of the armed forces upon death.
Taxation of certain armed forces personnel and other individuals upon
death.
In the case of any individual
(1) Who dies
a. On
or after January 1, 1964,
b. While
in active service as a member of the armed forces of the United States, and
c. While
serving in a combat zone; or
(2) Who dies
a. On
or after January 1, 1964, and
b. As
a result of wounds, disease, or injury incurred while in active service as a
member of the armed forces of the United States, and while serving in a combat
zone on or after January 1, 1964,
No individual income tax imposed
by this Division shall apply with respect to the taxable year in which falls
the date of the individual's death, or with respect to any prior taxable year
ending on or after the first day the individual so served in a combat zone; and
any tax under this Division and under the corresponding provisions of prior
revenue laws for taxable years preceding those above specified which is unpaid
at the date of the individual's death (including interest, additions to the
tax, and additional amounts) shall not be assessed and if assessed the
assessment shall be abated, and if collected shall be credited or refunded as
an overpayment. As used in this section, the term "combat zone"means
an area which the President of the United States by executive order designates
as an area in which the armed forces of the United States are or have been
engaged in combat.
An individual is not subject to the tax imposed by this Division for a taxable year if, under section 692 of the Code, the individual is not subject to federal income tax for that same taxable year."
Sec. 3. This act is effective upon ratification and applies retroactively as of August 2, 1990.
In the General Assembly read three times and ratified this the 28th day of June, 1991.
───────────────────
James C. Gardner
President of the Senate
───────────────────
Daniel Blue, Jr.
Speaker of the House of Representatives