GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1304

Short Title:  No Income Tax Marriage Penalty.	(Public)

─────────────────────────────────────── 
Sponsors: Representatives Decker; Allred, Arnold, Baker, Barbee, Brown, Brubaker, Cansler, Capps, Clary, Creech, Culp, Daughtry, Davis, Dockham, Eddins, Ellis, Esposito, Gardner, Gray, Gulley, Hiatt, Holmes, Horn, Kiser, McComas, McCombs, McMahan, Miner, Mitchell, Moore, Morris, Nye, Preston, Rayfield, Russell, Setzer, Sexton, Sherrill, Smith, Starnes, Tallent, Teague, Walend, Warwick, G. Wilson, and Wood.

─────────────────────────────────────── 
Referred to:  Finance.

─────────────────────────────────────── 

April 21, 1999

A BILL TO BE ENTITLED
AN ACT TO REDUCE INCOME TAXES FOR MARRIED COUPLES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-134.6(c)(3) and (4) read as rewritten:
"(c)	Additions. – The following additions to taxable income shall be made in calculating North Carolina taxable income, to the extent each item is not included in taxable income:
…
(3)	Any amount deducted from gross income under section 164 of the Code as state, local, or foreign income tax to the extent that the taxpayer's total itemized deductions deducted under the Code for the taxable year exceed the standard deduction allowable to the taxpayer under the Code reduced by the amount the taxpayer is required to add to taxable income under subdivision (4) of this subsection.
(4) 	In the case of married individuals who file a joint return, the amount by which the taxpayer's standard deduction under the Code exceeds six thousand dollars ($6,000).  In the case of a married individual filing a separate return, the amount by which the taxpayer's standard deduction under the Code exceeds three thousand dollars ($3,000).  In the case of all other taxpayers, the amount by which the taxpayer's standard deduction has been increased for inflation under section 63(c)(4)(A) of the Code."
Section 2.  G.S. 105-134.2(a) reads as rewritten:
"(a)	A tax is imposed upon the North Carolina taxable income of every individual. The tax shall be levied, collected, and paid annually and shall be computed at the following percentages of the taxpayer's North Carolina taxable income.
(1)	For married individuals who file a joint return under G.S. 105-152 and for surviving spouses, as defined in section 2(a) of the Code:
	On the North Carolina taxable income up to twenty-five thousand five hundred dollars ($25,500), six percent (6%).
	On the amount over twenty-five thousand five hundred dollars ($25,500) and up to one hundred twenty thousand dollars ($120,000), seven percent (7%).
	On the amount over one hundred twenty thousand dollars ($120,000), seven and seventy-five one-hundredths percent (7.75%).
(2)	For heads of households, as defined in section 2(b) of the Code:
	On the North Carolina taxable income up to seventeen thousand dollars ($17,000), six percent (6%).
	On the amount over seventeen thousand dollars ($17,000) and up to eighty thousand dollars ($80,000), seven percent (7%).
	On the amount over eighty thousand dollars ($80,000), seven and seventy-five one-hundredths percent (7.75%).
(3)	For unmarried individuals other than surviving spouses and heads of households, and for married individuals who do not file a joint return:
	On the North Carolina taxable income up to twelve thousand seven hundred fifty dollars ($12,750), six percent (6%).
	On the amount over twelve thousand seven hundred fifty dollars ($12,750) and up to sixty thousand dollars ($60,000), seven percent (7%).
	On the amount over sixty thousand dollars ($60,000), seven and seventy-five one-hundredths percent (7.75%).
				%)."
Section 3.  This act is effective for taxable years beginning on or after January 1, 2002.