GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE JOINT RESOLUTION 491

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Sponsors: Representatives McMahan; Arnold, Baddour, Barbee, Bowie, Bridgeman, Cansler, Culp, Dockham, Edwards, Gillespie, Grady, Gulley, Hiatt, Holmes, Justus, Kiser, McComas, Melton, Miner, Morris, Neely, Owens, Russell, Sherrill, Thompson, Walend, and G. Wilson.

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Referred to:  Rules, Calendar and Operations of the House.

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March 18, 1999

A JOINT RESOLUTION TO AUTHORIZE THE LEGISLATIVE RESEARCH COMMISSION TO STUDY CONSOLIDATED CORPORATE INCOME TAX RETURNS.
Whereas, North Carolina's corporate income tax requires each separate corporation to file a separate return and does not allow affiliated corporate groups to file consolidated or combined returns; and
Whereas, affiliated corporate groups are allowed to file consolidated returns for federal income tax purposes; and
Whereas, allowing or requiring consolidated or combined reporting for North Carolina income tax purposes could have positive benefits for taxpayers doing business in this State; and
Whereas, although allowing elective consolidated reporting would initially cause a loss to the General Fund, that loss might later be offset substantially if corporate groups are required to continue filing on the same basis that they initially elect; Now, therefore,
Be it resolved by the House of Representatives, the Senate concurring:
Section 1.  The Legislative Research Commission may study the issue of allowing or requiring consolidated or combined income tax reporting by affiliated corporations.
Section 2.  The study shall include a thorough review of the legal and fiscal effects of combined and consolidated reporting, a survey of the filing methods employed by other states, and evaluation of the positive and negative consequences of changing from a separate reporting requirement for corporate income tax purposes.
Section 3.  The Legislative Research Commission shall make a final report of its findings and recommendations to the 2000 Regular Session of the 1999 General Assembly.
Section 4.  This resolution is effective upon ratification.