North Carolina 2017-2018 Session Status: Enacted 5 R cosponsors

SB 325 — The Uniform & Expanded Early Voting Act.

Last action — Veto Overridden

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 21, 2017. Enacted.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 20 sponsors

    2 primary, 18 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (5 R).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

460 added · 85 removed

Plain-language change summary

The revised bill now focuses on a substantial tax cut for the middle class, lowering the personal income tax rate from 5.499% to 5.35%, increasing the standard deduction, and expanding the child tax deduction. These changes aim to provide financial relief to individuals and families, making it easier for them to manage their expenses. By reducing the corporate income tax rate and modifying how business taxes are calculated, the bill also seeks to stimulate the economy. Overall, these amendments are intended to support the financial well-being of the middle class and foster a more favorable business environment.

→
Previous
Latest
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S 2 SENATE BILL 325 House Committee Substitute Favorable 6/14/18 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S 1 SENATE BILL 325 Short Title:
The Uniform & Expanded Early Voting Act.
Billion Dollar Middle Class Tax Cut.
Senators Tillman, Brock, Tucker (Primary Sponsors);
Ballard, Barefoot, Britt, Cook, Curtis, Daniel, J.
Davis, Dunn, Edwards, Gunn, Hise, Krawiec, McInnis, Pate, Rabin, Randleman, and Sanderson.
March 22, 2017 A BILL TO BE ENTITLED AN ACT TO SET HOURS FOR ONE-STOP EARLY VOTING SITES AND TO REQUIRE COUNTY BOARD OF ELECTIONS TO SUBMIT AN ANNUAL REPORT ON VOTER LIST MAINTENANCE.
Rules and Operations of the Senate March 22, 2017 A BILL TO BE ENTITLED AN ACT TO REDUCE THE PERSONAL INCOME TAX RATE AND INCREASE THE STANDARD DEDUCTION;
TO ELIMINATE THE TAX PENALTY IN THE MORTGAGE INTEREST TAX DEDUCTION;
TO EXPAND AND INCREASE THE CHILD TAX DEDUCTION;
TO REDUCE THE CORPORATE INCOME TAX RATE;
AND TO ADOPT MARKET-BASED SOURCING FOR BUSINESS TAX APPORTIONMENT.
SECTION 1.
PART I.
PERSONAL INCOME TAX CHANGES SECTION 1.1.
163A-1300(b) reads as rewritten:
105-153.7(a) reads as rewritten:
"(b) Not earlier than the second Thursdaythird Wednesday before an election, in which absentee ballots are authorized, in which a voter seeks to vote and not later than 1:00 P.M.
"(a) Tax.
7:00 P.M.
– A tax is imposed for each taxable year on the North Carolina taxable income of every individual.
on the last Saturday Friday before that election, the voter shall appear in person only at the office of the county board of elections, except as provided in G.S.
The tax shall be levied, collected, and paid annually.
163A-1303.
The tax is five and four hundred ninety-nine thousandths percent (5.499%) five and thirty-five hundredths percent (5.35%) of the taxpayer's North Carolina taxable income." SECTION 1.2.
A county board of elections shall conduct one-stop voting on the last Saturdaybefore the election until 1:00 P.M.
That voter shall enter the voting enclosure at the board office through the appropriate entrance and shall at once state his or her name and place of residence to an authorized member or employee of the board and present photo identification in accordance with G.S.
163A-1145.
In a primary election, the voter shall also state the political party with which the voter affiliates and in whose primary the voter desires to vote, or if the voter is an unaffiliated voter permitted to vote in the primary of a particular party under G.S.
163A-989, the voter shall state the name of the authorizing political party in whose primary he wishes to vote.
The board member or employee to whom the voter gives this information shall announce the name and residence of the voter in a distinct tone of voice.
After examining the registration records, an employee of the board shall state whether the person seeking to vote is duly registered.
If the voter is found to be registered that voter may request that the authorized member or employee of the board furnish the voter with an application form as specified in G.S.
163-227.G.S.
163A-1391.
The voter shall complete the application in the presence of the authorized member or employee of the board, and shall deliver the application to that person." SECTION 2.
163A-1303 reads as rewritten:
105-153.5 reads as rewritten:
"§ 163A-1303.
"§ 105-153.5.
Sites and hours for one-stop voting.
Modifications to adjusted gross income.
(a) Notwithstanding any other provision of G.S.
(a) Deduction Amount.
163A-1300, 163A-1301, 163A-1302, this section, and G.S.
– In calculating North Carolina taxable income, a taxpayer may deduct from adjusted gross income either the standard deduction amount provided in subdivision (1) of this subsection or the itemized deduction amount provided in subdivision (2) of this subsection that the taxpayer claimed under the Code.
163A-1304, a county board of elections by unanimous vote of all its members may provide for one or more sites in that county for absentee ballots to be applied for and cast under these sections.
The deduction amounts are as follows:
Every individual staffing any of those sites shall be a member or full-time employee of the county board of elections or an employee of the county board of elections whom the board has given trainingequivalent to that given a full-time employee.
(1) Standard deduction amount.
Those sites must be approved by the State Board as part of a Plan for Implementation approved by both the county board of elections and by the State Board which shall also provide adequate security of the ballots and provisions to avoid allowing persons to vote who have already voted.
– The standard deduction amount is zero for a person who is not eligible for a standard deduction under section 63 of the Code.
The Plan *S325-v-2* General Assembly Of North Carolina Session 2017 for Implementation shall include a provision for the presence of political party observers at each one-stop site equivalent to the provisions in G.S.
For all other taxpayers, the standard deduction amount is equal to the amount listed in the table below based on the taxpayer's filing status:
163A-821 for party observers at voting places on election day.
Filing Status Standard Deduction Married, filing jointly/surviving spous$17,500$20,000 Head of Household 14,00015,000 Single 8,75010,000 Married, filing separately 8,750.10,000.
A county board of elections may propose in its Plan not to offer one-stop voting at the county board of elections office;
(2) Itemized deduction amount.
the State Board may approve that proposal in a Plan only if the Plan includes at least one site reasonably proximate to the county board of elections office and the State Board finds that the sites in the Plan as a whole provide adequate coverage of the county's electorate.
– An amount equal to the sum of the items listed in this subdivision.
Show all 273 changed rows (233 more)
Previous
Latest
If a county board of elections has considered a proposed Plan or Plans for Implementation and has been unable to reach unanimityin favor of a Plan, a member or members of that county board of elections may petition the State Board to adopt a plan for it.
The amounts allowed under this subdivision are not *S325-v-1* General Assembly Of North Carolina Session 2017 subject to the overall limitation on itemized deductions under section 68 of the Code:
If petitioned, the State Board may also receive and consider alternative petitions from another member or members of that county board.
… b.
The State Board may adopt a Plan for that county.
Mortgage Expense and Property Tax.
The State Board, in that plan, shall take into consideration factors including geographic, demographic, and partisan interests of that county.
– The amount allowed as a deduction for interest paid or accrued during the taxable year under section 163(h) of the Code with respect to any qualified residence plus the amount allowed as a deduction for property taxes paid or accrued on real estate under section 164 of the Code for that taxable year.
Any plan adopted by either the county board of elections or the State Board under this subsection shall provide for the same days of operation and same number of hours of operation on each day for all sites in that county for that election.
For taxable years 2014, 2015, and 2016, the amount allowed as a deduction for interest paid or accrued during the taxable year under section 163(h) of the Code with respect to any qualified residence shall not include the amount for mortgage insurance premiums treated as qualified residence interest.
The requirement of the previous sentence does not applyto the county board of elections office itself nor, if one-stop voting is not conducted at the county board of elections office, to the reasonably proximate alternate site approved under this subsection.
The amount allowed under this sub-subdivision may not exceed twenty thousand dollars ($20,000).
… (c) For all sites approved for one-stop voting under this section, a county board of elections shall provide the following:
For spouses filing as married filing separately or married filing jointly, the total mortgage interest and real estate taxes claimed by both spouses combined may not exceed twenty thousand dollars ($20,000).
(1) Each one-stop site across the countyshall be open at that same location during the period required by G.S.
For spouses filing as married filing separately with a joint obligation for mortgage interest and real estate taxes, the deduction for these items is allowable to the spouse who actually paid them.
163A-1300(b).
If the amount of the mortgage interest and real estate taxes paid by both spouses exceeds twenty thousand dollars ($20,000), these deductions must be prorated based on the percentage paid by each spouse.
(2) If any one-stop site across the county is opened on any day during the period required by G.S.
For joint obligations paid from joint accounts, the proration is based on the income reported by each spouse for that taxable year.the amount listed in the table below based on the taxpayer's filing status:
163A-1300(b), all one-stop sites shall be open on that day.
Filing Status Cap Amount Married, filing jointly/surviving spouse $22,000 Head of Household 16,500 Single 11,000 Married, filing separately 11,000.
(3) On each weekday during the period required by G.S.
… (a1) Child Deduction Amount.
163A-1300(b), all one-stop sites shall be open from 7:00 A.M.
– A taxpayer who is allowed a federal child tax credit under section 24 of the Code for the taxable year is allowed a deduction under this subsection for each dependent child for whom the taxpayer is allowed the federal tax credit.
to 7:00 P.M.
The amount of the deduction is equal to the amount listed in the table below based on the taxpayer's adjusted gross income, as calculated under the Code:
(4) If the county board of elections opens one-stop sites on Saturdays during the period required by G.S.
Filing Status AGI Deduction Amount Married, filing jointly Up to $40,000 $2,500.00 Over $40,000 Up to $60,000 2,000.00 Over $60,000 Up to $80,000 1,500.00 Over $80,000 Up to $100,000 1,000.00 Over $100,000 Up to $120,000 500.00 Over $120,000 0 Head of Household Up to $30,000 $2,500.00 Over $30,000 Page 2 Senate Bill 325-First Edition General Assembly Of North Carolina Session 2017 Up to $45,000 2,000.00 Over $45,000 Up to $60,000 1,500.00 Over $60,000 Up to $75,000 1,000.00 Over $75,000 Up to $90,000 500.00 Over $90,000 0 Single Up to $20,000 $2,500.00 Over $20,000 Up to $30,000 2,000.00 Over $30,000 Up to $40,000 1,500.00 Over $40,000 Up to $50,000 1,000.00 Over $50,000 Up to $60,000 500.00 Over $60,000 0 Married, filing separately Up to $20,000 $2,500.00 Over $20,000 Up to $30,000 2,000.00 Over $30,000 Up to $40,000 1,500.00 Over $40,000 Up to $50,000 1,000.00 Over $50,000 Up to $60,000 500.00 Over $60,000 0.
163A-1300(b), then all one-stop sites shall be open for the same number of hours uniformly throughout the county on those Saturdays.
…." SECTION 1.3.
(5) If the county board of elections opens one-stop sites on Sundays during the period required by G.S.
163A-1300(b), then all one-stop sites shall be open for the same number of hours uniformly throughout the county on those Sundays." SECTION 3.
163A-1304 is repealed.
105-153.10 is repealed.
SECTION 4.
SECTION 1.4.
This part becomes effective for taxable years beginning on or after January 1, 2018.
PART II.
BUSINESS TAX CHANGES SECTION 2.1.
163A-877 is amended by adding a new subsection to read:
105-130.3 reads as rewritten:
"(f) Annual Report on List Maintenance Efforts.
"§ 105-130.3.
– County board of elections shall submit to the State Board an annual report, on or before September 1 of each year, of its list maintenance under this section.
Corporations.
The State Board shall compile annual reports received from the county board of elections and submit the reports to the Joint Legislative Elections Oversight Committee on or before October 1 of each year." SECTION 5.
A tax is imposed on the State net income of every C Corporation doing business in this State at the rate of three percent (3%).
This act is effective when it becomes law.
two and three-quarters percent (2.75%).
Page 2 Senate Bill 325-Second Edition
An S Corporation is not subject to the tax levied in this section." SECTION 2.2.
G.S.
105-130.3, as amended by Section 2.1 of this act, 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 at the rate of two and three-quarters percent (2.75%).
two and one-half percent (2.5%).
An S Corporation is not subject to the tax levied in this section." SECTION 2.3.
G.S.
105-122 reads as rewritten:
"§ 105-122.
Franchise or privilege tax on domestic and foreign corporations.
(a) Tax Imposed.
– An annual franchise or privilege tax is imposed on a corporation doing business in this State.
State for the privilege of doing business in this State and for the Senate Bill 325-First Edition Page 3 General Assembly Of North Carolina Session 2017 continuance of articles of incorporation or domestication of each corporation in this State.
The tax is determined on the basis of the books and records of the corporation as of the close of its income year.
A corporation subject to the tax must file a return under affirmation with the Secretary at the place and in the manner prescribed by the Secretary.
The return must be signed by the president, vice-president, treasurer, or chief financial officer of the corporation.
The return is due on or before the fifteenth day of the fourth month following the end of the corporation's income year.
… (d) Tax Base and Tax Rate.
– After determining the Base.
– A corporation's tax base is the greater of the following:
(1) The proportion of its net worth as set out in subsection (c1) of this section, which amount shall not be less than fifty-five percent (55%) section.
(2) Fifty-five percent (55%) of the corporation's appraised value as determined for ad valorem taxation of all the real and tangible personal property in this State of each corporation nor less than its State.
For purposes of this subdivision, the appraised value of tangible property including real estate is the ad valorem valuation for the calendar year next preceding the due date of the franchise tax return.
(3) The corporation's total actual investment in tangible property in this State, every corporation taxed under this section shall annually pay to the Secretary of Revenue, at the time the return is due, a franchise or privilege tax at the rate of one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of the total amount of net worth as provided in this section.
The tax imposed in this section shall not be less than two hundred dollars ($200.00) and is for the privilege of carrying on, doing business, and/or the continuance of articles of incorporation or domestication of each corporation in this State.
Appraised value of tangible property including real estate is the ad valorem valuation for the calendar year next preceding the due date of the franchise tax return.
The term "total State.
For purposes of this subdivision, the total actual investment in tangible property" as used in this section means property in this State is the total original purchase price or consideration to the reporting taxpayer of its tangible properties, including real estate, in this State plus additions and improvements thereto less reserve for depreciation as permitted for income tax purposes.
… (d2) Tax Rate.
– For a C Corporation, as defined in G.S.
105-130.2, the tax rate is one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of the corporation's tax base as determined under subsection (d) of this section.
For an S Corporation, as defined in G.S.
105-130.2, the tax rate is two hundred dollars ($200.00) for the first one million dollars ($1,000,000) of the corporation's tax base as determined under subsection (d) of this section, and one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of its tax base that exceeds one million dollars ($1,000,000).
In no event may the tax imposed by this section be less than two hundred dollars ($200.00).
…." SECTION 2.4.
Section 2.1 of this act becomes effective for taxable years beginning on or after January 1, 2018.
Section 2.2 of this act becomes effective for taxable years beginning on or after January 1, 2019.
Section 2.3 of this act becomes effective for taxable years beginning on or after January 1, 2019, and is applicable to the calculation of franchise tax reported on the 2018 and later corporate income tax returns.
PART III.
MARKET-BASED SOURCING Page 4 Senate Bill 325-First Edition General Assembly Of North Carolina Session 2017 SECTION 3.1.
G.S.
105-130.4 reads as rewritten:
"§ 105-130.4.
Allocation and apportionment of income for corporations.
… (l) (1) The Sales Factor.
– The sales factor is a fraction, the numerator of which is the total sales of the corporation in this State during the income year, and the denominator of which is the total sales of the corporation everywhere during the income year.
Notwithstanding any other provision under this Part, the receipts from any casual sale of property shall be excluded from both the numerator and the denominator of the sales factor.
Where a corporation is not taxable in another state on its apportionable income but is taxable in another state only because of nonapportionable income, all sales shall be treated as having been made in this State.
Receipts are in this State if the taxpayer's market for the receipts is in this State.
If the market for a receipt cannot be determined, the state or states of assignment shall be reasonably approximated.
In a case in which a taxpayer cannot ascertain the state or states to which receipts of a sale are to be assigned through the use of a method of reasonable approximation, the receipts must be excluded from the denominator of a taxpayer's sales factor.
Except as otherwise provided by this section, a taxpayer's market for receipts is in this State as provided below:
(1) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this State.
(2) Sales of tangible personal property are in this State if the property is received in this State by the purchaser.
In the case of delivery of goods by common carrier or by other means of transportation, including transportation by the purchaser, the place at which the goods are ultimately received after all transportation has been completed shall be considered as the place at which the goods are received by the purchaser.
Direct delivery into this State by the taxpayer to a person or firm designated by a purchaser from within or without the State shall constitute delivery to the purchaser in this State.In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this State.
(3) Other sales are in this State if:In the case of sale of tangible personal property, if and to the extent the property is received in this State by the purchaser.
In the case of delivery of goods by common carrier or by other means of transportation, including transportation by the purchaser, the place at which the goods are ultimately received after all transportation has been completed is considered the place at which the goods are received by the purchaser.
Direct delivery into this State by the taxpayer to a person or firm designated by a purchaser from within or without the State constitutes delivery to the purchaser in this State.
a.
The receipts are from real or tangible personal property located in this State;
or b.
The receipts are from intangible property and are received from sources within this State;
or c.
The receipts are from services and the income-producing activities are in this State.
(4) In the case of sale of a service, if and to the extent the service is delivered to a location in this State.
(5) In the case of intangible property that is rented, leased, or licensed, if and to the extent the property is used in this State.
Intangible property utilized in marketing a good or service to a consumer is "used in this State" if that good or service is purchased by a consumer who is in this State.
Senate Bill 325-First Edition Page 5 General Assembly Of North Carolina Session 2017 (6) In the case of intangible property that is sold, if and to the extent the property is used in this State.
A contract right, government license, or similar intangible property that authorized the holder to conduct a business activity in a specific geographic area is "used in this State" if the geographic area includes all or part of this State.
Receipts from a sale of intangible property that is contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of the intangible property as provided under subdivision (5) of this subsection.
All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the sales factor.
(l1) Banks.
– A bank's market for receipts is in this State as provided in G.S.
105-130.4A.
For purposes of this section, the term "bank" has the same meaning as defined in G.S.
105-130.4A.
…." SECTION 3.2.
Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-130.4A.
Market-based sourcing for banks.
(a) Definitions.
– The definitions in G.S.
105-130.4 apply to this section, and the following definitions apply to this section:
(1) Bank.
– Defined in G.S.
105-130.7B.
(2) Billing address.
– The location indicated in the books and records of the taxpayer on the first day of the taxable year, or on the date in the taxable year when the customer relationship began, as the address where any notice, statement, or billing relating to the customer's account is mailed.
(3) Borrower, card holder, or payor is located in this State.
– A borrower, credit card holder, or payor whose billing address is in this State.
(4) Card issuer's reimbursement fee.
– The fee a taxpayer receives from a merchant's bank because one of the persons to whom the taxpayer has issued a credit, debit, or similar type of card has charged merchandise or services to the card.
(5) Credit card.
– A card, or other means of providing information, that entitles the holder to charge the cost of purchases, or a cash advance, against a line of credit.
(6) Debit card.
– A card, or other means of providing information, that enables the holder to charge the cost of purchases, or a cash withdrawal, against the holder's bank account or a remaining balance on the card.
(7) Loan.
– Any extension of credit resulting from direct negotiations between the taxpayer and its customer, and/or the purchase, in whole or in part, of such an extension of credit from another.
The term includes participations, syndications, and leases treated as loans for federal income tax purposes.
(8) Loan secured by real property.
– A loan or other obligation of which fifty percent (50%) or more of the aggregate value of the collateral used to secure the loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property.
(9) Merchant discount.
– The fee, or negotiated discount, charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit, debit, or similar type of card is accepted in payment for merchandise or services sold to the card holder, net of any cardholder chargeback and unreduced by any interchange transaction or issuer reimbursement fee paid to another for charges or purchases made by its cardholder.
Page 6 Senate Bill 325-First Edition General Assembly Of North Carolina Session 2017 (10) Participation.
– An extension of credit in which an undivided ownership interest is held on a prorated basis in a single loan or pool of loans and related collateral.
In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders.
The participation may or may not be known to the borrower.
(11) Payor.
– The person who is legally responsible for making payment to the taxpayer.
(12) Real property owned.
– Real property (i) on which the taxpayer may claim depreciation for federal income tax purposes or (ii) to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes or could claim depreciation if subject to federal income tax.
Real property does not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.
(13) Syndication.
– An extension of credit in which two or more persons fund, and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount.
(14) Tangible personal property owned.
– Tangible personal property (i) on which the taxpayer may claim depreciation for federal income tax purposes or (ii) to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes could claim depreciation if subject to federal income tax.
Tangible personal property does not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.
(15) Transportation property.
– Vehicles and vessels capable of moving under their own power as well as any equipment or containers attached to such property.
Examples of transportation property include aircraft, trains, water vessels, motor vehicles, rolling stock, barges, and trailers.
(b) General Rule.
– The receipts factor of a bank is a fraction, the numerator of which is the total receipts of the taxpayer in this State during the income year, and the denominator of which is the total receipts of the taxpayer everywhere during the income year.
The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator.
The receipts factor includes only those receipts described herein that are apportionable income for the taxable year.
Notwithstanding any other provision under this Part, the receipts from the following are excluded from both the numerator and the denominator of the receipts factor:
(1) Receipts from a casual sale of property.
(2) Receipts exempt from taxation.
(3) The portion of receipts realized from the sale or maturity of securities or other obligations that represents a return of principal.
(4) Receipts in the nature of dividends subtracted under G.S.
105-130.5(b)(3a) and (3b) and dividends excluded for federal tax purposes.
(5) The portion of receipts from financial swaps and other similar financial derivatives that represent the notional principal amount that generates the cash flow traded in the swap agreement.
(c) Receipts From the Sale, Lease, or Rental of Real Property.
– The numerator of the receipts factor includes receipts from the sale, lease, or rental of real property owned by the taxpayer if the property is located within this State or receipts from the sublease of real property if the property is located within this State.
(d) Receipts From the Sale, Lease, or Rental of Tangible Personal Property.
– The method for calculating receipts from the sale, lease, or rental of tangible personal property is as follows:
Senate Bill 325-First Edition Page 7 General Assembly Of North Carolina Session 2017 (1) Tangible personal property.
– Except as provided in subdivision (2) of this subsection, the numerator of the receipts factor includes receipts from the sale, lease, or rental of tangible personal property owned by the taxpayer if the property is located within this State when it is first placed in service by the lessee.
(2) Transportation property.
– Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this State.
The extent an aircraft will be deemed to be used in this State and the amount of receipts that is to be included in the numerator of this State's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this State and the denominator of which is the total number of landings of the aircraft.
If the extent of the use of any transportation property within this State cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations.
A motor vehicle will be deemed to be used wholly in the state in which it is registered.
(e) Interest, Fees, and Penalties From Loans Secured by Real Property.
– The numerator of the receipts factor includes interest, fees, and penalties from loans secured by real property if the property is located within this State.
If the property is located both within this State and one or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this State.
If more than fifty percent (50%) of the fair market value of the real property is not located within any one state, then the receipts described in this subsection are included in the numerator of the receipts factor if the borrower is located in this State.
The determination of whether the real property securing a loan is located within this State is made as of the time the original agreement was made, and any and all subsequent substitutions of collateral are disregarded.
(f) Interest, Fees, and Penalties From Loans Not Secured by Real Property.
– The numerator of the receipts factor includes interest, fees, and penalties from loans not secured by real property if the borrower is located in this State.
(g) Net Gains From the Sale of Loans.
– The numerator of the receipts factor includes net gains from the sale of loans.
Net gains from the sale of loans include income recorded under the coupon stripping rules of section 1286 of the Code.
The amount of net gains from the sale of loans that is included in the numerator is determined as follows:
(1) Secured by real property.
– The amount of net gains, but not less than zero, from the sale of loans secured by real property is determined by multiplying the net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section, and the denominator of which is the total amount of interest, fees, and penalties from loans secured by real property.
(2) Not secured by real property.
– The amount of net gains, but not less than zero, from the sale of loans not secured by real property is determined by multiplying the net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (f) of this section, and the denominator of which is the total amount of interest, fees, and penalties from loans not secured by real property.
(h) Receipts From Interest, Fees, and Penalties From Card Holders.
– The numerator of the receipts factor includes interest, fees, and penalties charged to credit, debit, or similar card holders, including annual fees and overdraft fees, if the card holder is located in this State.
Page 8 Senate Bill 325-First Edition General Assembly Of North Carolina Session 2017 (i) Receipts From ATM Fees.
– The numerator of the receipts factor includes receipts from fees from the use of an ATM owned or rented by the taxpayer, if the ATM is located in this State.
The receipts factor includes all ATM fees that are not forwarded directly to another bank.
Receipts from ATM fees that are not sourced under this subsection are sourced pursuant to subsection (l) of this section.
(j) Net Gains From the Sale of Credit Card Receivables.
– The numerator of the receipts factor includes net gains, but not less than zero, from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (h) of this section, and the denominator of which is the taxpayer's total amount of interest, fees, and penalties charged to card holders.
(k) Miscellaneous Receipts.
– The numerator of the receipts factor includes all of the following:
(1) Card issuer's reimbursement fees.
– Receipts from card issuer's reimbursement fees if the payor is located in this State.
(2) Receipts from merchant's discount.
– Receipts from a merchant discount if the payor is located in this State.
(3) Loan servicing fees.
– Receipts from loan servicing fees if the payor is located in this State.
(4) Receipts from services.
– Receipts from services not otherwise apportioned under this section if the payor is located in this State.
(5) Receipts from investment assets and activities and trading assets and activities.
– Receipts from one or more of the following:
a.
Interest and dividends from investment assets and activities and trading assets and activities if the payor is located in this State.
b.
Net gains and other income, but not less than zero, from investment assets and activities and trading assets and activities multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to sub-subdivision a.
of this subdivision, and the denominator of which is the taxpayer's total amount of interest and dividends from investment assets and activities and trading assets and activities.
(l) All Other Receipts.
– All other receipts not specifically enumerated in this section are included in the numerator of the receipts factor if the payor is located in this State." SECTION 3.3.
As directed by Section 38.4(a) of S.L.
2016-94, the Department of Revenue adopted rules regarding the implementation and administration of market-based sourcing principles as if the statutory changes in Part I of this act were law.
The Department adopted rules and submitted the rules to the Rules Review Commission.
The Rules Review Commission approved the rules on February 16, 2017.
As directed by Section 38.4(b) of S.L.
2016-94, the Codifier of Rules will not enter the rules into the Administrative Code until directed to do so by the General Assembly.
The Codifier of Rules is directed to enter the rules approved by the Rules Review Commission at its meeting on February 16, 2017, into the Administrative Code.
SECTION 3.4.
As directed by Section 38.4(d) of S.L.
2016-94, the Utilities Commission shall adjust the rates for public utilities, excluding water public utilities with less than two hundred thousand dollars ($200,000) in annual operating revenues, for the tax changes in Part I of this act.
Each utility shall calculate the cumulative net effect of the tax changes and file the calculations with proposed rate changes to reflect the net prospective tax changes in utility customer rates within 60 days of the enactment of this act.
Any adjustments required to existing tax assets or liabilities reflected in the utility's books and records required by the tax changes shall be deferred and reflected in customer rates either in the utility's next rate case or earlier if deemed appropriate by the Commission.
Senate Bill 325-First Edition Page 9 General Assembly Of North Carolina Session 2017 SECTION 3.5.
Sections 3.1 and 3.2 of this act are effective for taxable years beginning on or after January 1, 2018.
PART IV.
EFFECTIVE DATE SECTION 4.
Except as otherwise provided, this act is effective when it becomes law.
Page 10 Senate Bill 325-First Edition
⬇ Download PDF
View plain text versions (5)

Action History

  1. Veto Overridden

  2. Ch. SL 2018-112

  3. Placed on Today's Calendar

  4. Veto Overridden

  5. Received from Senate

  6. Placed On Cal For 06/27/2018

  7. Vetoed 06/25/2018

  8. Amend Failed A1

  9. Amend Failed A2

  10. Passed 3rd Reading

  11. Special Message Sent To Senate

  12. Special Message Received For Concurrence in H Com Sub

  13. Placed on Today's Calendar

  14. Concurred In H Com Sub

  15. Ordered Enrolled

  16. Ratified

  17. Pres. To Gov. 6/15/2018

  18. Reptd Fav Com Substitute

  19. Cal Pursuant Rule 36(b)

  20. Added to Calendar

  21. Passed 2nd Reading

  22. Withdrawn From Com

  23. Re-ref Com On Elections and Ethics Law

  24. Withdrawn From Com

  25. Re-ref Com On Rules, Calendar, and Operations of the House

  26. Passed 1st Reading

  27. Ref To Com On Rules, Calendar, and Operations of the House

  28. Regular Message Sent To House

  29. Regular Message Received From Senate

  30. Passed 3rd Reading

  31. Amend Failed A1

  32. Passed 2nd Reading

  33. Withdrawn From Cal

  34. Placed On Cal For 04/04/2017

  35. Reptd Fav

  36. Reptd Fav

  37. Re-ref Com On Rules and Operations of the Senate

  38. Withdrawn From Com

  39. Re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate

  40. Passed 1st Reading

  41. Ref To Com On Rules and Operations of the Senate

  42. Filed

Sponsors

  • D. Davis · Cosponsor
  • Tillman · Primary
  • Norman W. Sanderson · Cosponsor
  • Randleman · Cosponsor
  • Rabin · Cosponsor
  • Pate · Cosponsor
  • Tom McInnis · Cosponsor
  • Krawiec · Cosponsor
  • Ralph Hise · Cosponsor
  • Gunn · Cosponsor
  • Edwards · Cosponsor
  • Dunn · Cosponsor
  • Warren Daniel · Cosponsor
  • Curtis · Cosponsor
  • Cook · Cosponsor
  • Brock · Primary
  • Jr. Danny Earl Britt · Cosponsor
  • Barefoot · Cosponsor
  • Ballard · Cosponsor
  • Tucker · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

2 sponsors · 18 co-sponsors · 159 not signed on · 21 voted No

Sponsors (2)

  • Tillman
  • Brock

Co-sponsors (18)

Not signed on (159)

159 members have not signed on to this bill.

Show all 159 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Veto Override

Passed 74 Yea · 45 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 463000
Democratic 11400
Republican 27001
U 0100
Total 744501
% of votes cast 62%38%0%1%
How each member voted (120)
Member Party Vote
Lewis — Yea
McElraft — Yea
McNeill — Yea
Michaux — Nay
Rogers — Yea
Steinburg — Yea
Yarborough — Yea
Zachary — Yea
Boles — Yea
Boswell — Yea
Burr — Yea
Conrad — Yea
Dobson — Yea
Dulin — Yea
Farmer-Butterfield — Nay
Floyd — Nay
Fraley — Yea
Garrison — Nay
Gill — Nay
Jordan — Yea
J.Bell — Yea
BertJones — Yea
Brawley — Yea
BrendenJones — Yea
DestinHall — Yea
K.Hall — Yea
Johnson — Yea
Malone — Yea
S.Martin — Yea
Bradford — Yea
Bumgardner — Yea
Cleveland — Yea
Collins — Yea
Dollar — Yea
Elmore — Yea
Faircloth — Yea
Grange — Yea
Hardister — Yea
Henson — Yea
Horn — Yea
Hurley — Yea
T.Moore(Speaker) — Yea
Stone — Yea
R.Turner — Yea
G.Adcock — Nay
L.Bell — Nay
DuaneHall — Nay
C.Graham — Nay
G.Graham — Nay
Jackson — Nay
G.Martin — Nay
R.Moore — Nay
B.Richardson — Nay
W.Richardson — Nay
B.Turner — Nay
Autry — Nay
Beasley — Nay
Black — Nay
Earle — Nay
Fisher — Nay
Goodman — Nay
Hanes — Nay
Holley — Nay
Hunter — Nay
Insko — Nay
Lucas — Nay
McGrady — Yea
Muller — Yea
Murphy — Yea
Presnell — Yea
Saine — Yea
Speciale — Nay
Szoka — Yea
Terry — Nay
Williams — Yea
Wray — Nay
Amos L. Quick, III Democratic Nay
Becky Carney Democratic Nay
Cecil Brockman Democratic Nay
Cynthia Ball Democratic Nay
Dante Pittman Democratic Yea
Deb Butler Democratic Nay
Eric Ager Democratic Nay
Garland E. Pierce Democratic Nay
Graig Meyer Democratic Nay
Joe John Democratic Nay
Marcia Morey Democratic Nay
Mary Belk Democratic Nay
Pricey Harrison Democratic Nay
Robert T. Reives, II Democratic Nay
Shelly Willingham Democratic Nay
Carl Ford Republican Yea
Dean Arp Republican Yea
Dennis Riddell Republican Yea
Donna McDowell White Republican Yea
Donny Lambeth Republican Yea
Frank Iler Republican Yea
Harry Warren Republican Yea
Hugh Blackwell Republican Yea
Jay Adams Republican Yea
Jimmy Dixon Republican Yea
John A. Torbett Republican Yea
John M. Blust Republican Yea
John Sauls Republican Yea
Julia C. Howard Republican Yea
Kelly E. Hastings Republican Yea
Kevin Corbin Republican Yea
Larry C. Strickland Republican Yea
Larry W. Potts Republican Yea
Mark Brody Republican Yea
Mike Clampitt Republican Yea
Mitchell S. Setzer Republican Yea
Phil Shepard Republican Yea
Sam Watford Republican Yea
Sarah Stevens Republican Yea
Stephen M. Ross Republican Yea
Ted Davis, Jr. Republican Yea
W. Ted Alexander Republican Not Voting
William D. Brisson Republican Yea
Carla D. Cunningham U Nay

Official roll call →

Motion 11 Veto Override

Passed 34 Yea · 12 Nay · 4 Other
Party YeaNayPresentNot Voting
Republican 9100
Unaffiliated 24603
Democratic 1501
Total 341204
% of votes cast 68%24%0%8%
How each member voted (50)
Member Party Vote
McKissick — Nay
Randleman — Yea
Wells — Yea
Barefoot — Yea
Barrett — Yea
Edwards — Yea
Fitch — Nay
Foushee — Not Voting
Brown — Yea
J.Davis — Yea
B.Jackson — Yea
Newton — Yea
Tucker — Yea
D.Davis — Nay
J.Jackson — Nay
Smith — Nay
VanDuyn — Not Voting
Ballard — Yea
Barringer — Yea
Bishop — Yea
Curtis — Not Voting
Dunn — Yea
Gunn — Yea
Harrington — Yea
Horner — Yea
Krawiec — Yea
Meredith — Yea
Pate — Yea
Rabin — Yea
Tarte — Yea
Tillman — Yea
Wade — Yea
Woodard — Nay
Amanda P. Cook Democratic Yea
Dan Blue Democratic Nay
Gladys A. Robinson Democratic Not Voting
Jay J. Chaudhuri Democratic Nay
Joyce Waddell Democratic Nay
Paul A. Lowe, Jr. Democratic Nay
Tracy Clark Democratic Nay
Bill Rabon Republican Yea
Carl Ford Republican Nay
Danny Earl Britt, Jr. Republican Yea
Michael V. Lee Republican Yea
Norman W. Sanderson Republican Yea
Phil Berger Republican Yea
Ralph Hise Republican Yea
Tom McInnis Republican Yea
W. Ted Alexander Republican Yea
Warren Daniel Republican Yea

Official roll call →

Subjects

taxation elections
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 325?
SB 325 is sponsored by D. Davis, Tillman, Norman W. Sanderson (Republican), Randleman, Rabin, Pate, Tom McInnis (Republican), Krawiec, Ralph Hise (Republican), Gunn, Edwards, Dunn, Warren Daniel (Republican), Curtis, Cook, Brock, Danny Earl Britt, Jr. (Republican), Barefoot, Ballard, and Tucker.
What is the current status of SB 325?
This bill has been enacted into law. Introduced March 21, 2017. Enacted.
Where can I track SB 325?
Track SB 325 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 325

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 325

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →