GENERAL ASSEMBLY OF NORTH CAROLINA
1997 SESSION
S.L. 1997-439
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-130.5(b) is amended by adding a new subdivision to read:
"(1a) Interest upon the obligations of any of the following, net of related expenses, to the extent included in federal taxable income:
a. This State, a political subdivision of this State, or a commission, an authority, or another agency of this State or of a political subdivision of this State.
b. A nonprofit educational institution organized or chartered under the laws of this State."
Section 2. G.S. 105-130.7 reads as rewritten:
"§ 105-130.7. Deductible portion of dividends.
(a) Regulated Investment Companies. - A corporation may deduct the proportionate part of dividends received by it from a regulated investment company or a real estate investment trust, as defined in G.S. 105-130.12, as represents and corresponds to income received by the regulated investment company or real estate investment trust that would not be taxed by this State if received directly by the corporation.
(b) Subsidiary Dividends. - A corporation that, at the close of its taxable year, has its commercial domicile within North Carolina may deduct all dividends received from corporations in which it owns more than fifty percent (50%) of the outstanding voting stock.
Dividends from stock issued by a corporation are
deductible to the extent provided in this section.
(1),(2) Repealed by Session Laws 1996, Second Extra
Session, c. 14, s. 3.
(3) A
corporation may deduct such proportionate part of dividends received by it from
a regulated investment company or a real estate investment trust, as defined in
G.S. 105-130.12, as represents and corresponds to income received by such
regulated investment company or real estate investment trust which would not be
taxed by this State if received directly by the corporation.
(3a) Repealed by Session
Laws 1996, Second Extra Session, c. 14, s. 3.
(4) A
corporation that, at the close of its taxable year, has its commercial domicile
within North Carolina shall be allowed to deduct all dividends received from
corporations in which it owns more than fifty percent (50%) of the outstanding
voting stock.
(5) Repealed by
Session Laws 1996, Second Extra Session, c. 14, s. 3.
(6) In no case
shall the total amount of dividends that are allowed as a deduction to a
corporation under subdivision (3) of this section exceed fifteen thousand
dollars ($15,000) for the taxable year."
Section 3. G.S. 105-116.1(b), as enacted by Section 1 of Session Law 97-118, reads as rewritten:
"(b) Distribution. - The
Secretary must distribute to the cities part of the taxes collected under this
Article on electric power companies, natural gas companies, and telephone
companies. Each city's share for a calendar quarter is the percentage distribution
amount for that city for that quarter minus one-fourth of the city's hold-back amount.
amount and one-fourth of the city's proportionate share of the annual
cost to the Department of administering the distribution. The
Secretary must make the distribution within 75 days after the end of each
calendar quarter."
Section 4. Sections 1 and 2 of this act are effective for taxable years beginning on or after January 1, 1997. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 19th day of August, 1997.
s/ Marc Basnight
President Pro Tempore of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 10:21 a.m. this 28th day of August, 1997