GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 75*

Short Title:  EFT of Corporate Estimated Income Tax. 	(Public)

─────────────────────────────────────── 
Sponsors: Senators Hoyle, Cochrane, Dalton, Hartsell, Kerr, and Webster.

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

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

February 15, 1999

A BILL TO BE ENTITLED
AN ACT TO REQUIRE CORPORATIONS THAT ARE REQUIRED TO PAY FEDERAL-ESTIMATED INCOME TAX BY ELECTRONIC FUNDS TRANSFER TO PAY STATE-ESTIMATED INCOME TAX BY ELECTRONIC FUNDS TRANSFER.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-163.40 reads as rewritten:
"§ 105-163.40.  Time for submitting declaration; time and method for paying estimated tax; form of payment.
(a)	Due Dates of Declarations. – Declarations of estimated tax are due at the same time as the corporation's first installment payment.  Installment payments are due as follows:
	(1) 	If, before the 1st day of the 4th month of the taxable year, the corporation's estimated tax equals or exceeds five hundred dollars ($500.00),  the corporation shall pay the estimated tax in four equal installments on or before the 15th day of the 4th, 6th, 9th and 12th months of the taxable year.
	(2) 	If, after the last day of the 3rd month and before the 1st day of the 6th month of the taxable year, the corporation's estimated tax equals or exceeds five hundred dollars ($500.00), the corporation shall pay the estimated tax in three equal installments on or before the 15th day of the 6th, 9th and 12th months of the taxable year.
	(3) 	If, after the last day of the 5th month and before the 1st day of the 9th month of the taxable year, the corporation's estimated tax equals or exceeds five hundred dollars ($500.00), the corporation shall pay the estimated tax in two equal installments on or before the 15th day of the 9th and 12th months.
	(4) 	If, after the last day of the 8th month and before the 1st day of the 12th month of the taxable year, the corporation's estimated tax equals or exceeds five hundred dollars ($500.00), the corporation shall pay the estimated tax on or before the 15th day of the 12th month of the taxable year.
(b)	Payment of Estimated Tax When Declaration Amended. – When a corporation submits an amended declaration after making one or more installment payments on its estimated tax, the amount of each remaining installment shall be the amount that would have been payable if the estimate in the amended declaration was the original estimate, increased or decreased as appropriate by the amount computed by dividing:
	(1) 	The absolute value of the difference between:
		a.	The amount paid and
		b.	The amount that would have been paid if the estimate in the amended declaration was the original estimate by
	(2) 	The number of remaining installments.
(c)	Short Taxable Year. – Payment of estimated tax for taxable years of less than 12 months shall be made in accordance with rules promulgated by the Secretary. 
(d)	Form of Payment. – A corporation that is required under the Code to pay its federal-estimated corporate income tax by electronic funds transfer must pay its State-estimated tax by electronic funds transfer."
Section 2. G.S. 105-241(b) reads as rewritten: 
"(b)	Electronic Funds Transfer. –Except as provided in G.S. 105-163.40, the Secretary shall not require a taxpayer to pay a tax by electronic funds transfer unless, during the applicable period for that tax, the average amount of the taxpayer's required payments of the tax was at least twenty thousand dollars ($20,000) a month.  The twenty thousand dollar ($20,000) threshold applies separately to each tax.  The applicable period for a tax is a 12-month period, designated by the Secretary, preceding the imposition or review of the payment requirement.  The requirement that a taxpayer pay a tax by electronic funds transfer remains in effect until suspended by the Secretary.  Every 12 months after requiring a taxpayer to pay a tax by electronic funds transfer, the Secretary shall determine whether, during the applicable period for that tax, the average amount of the taxpayer's required payments of the tax was at least twenty thousand dollars ($20,000) a month.  If it was not, the Secretary shall suspend the requirement that the taxpayer pay the tax by electronic funds transfer and shall notify the taxpayer in writing that the requirement has been suspended."
Section 3.  This act becomes effective for taxable years beginning on or after January 1, 2000.