GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	3 

SENATE BILL 1065
Finance Committee Substitute Adopted 8/18/97
Third Edition Engrossed 8/20/97

Short Title:  Exempt Severance Pay.	(Public)

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Sponsors:

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO EXPAND THE INCOME TAX EXCLUSION FOR SEVERANCE PAY TO INCLUDE SEVERANCE PAY DUE TO AN EMPLOYEE'S INVOLUNTARY TERMINATION THROUGH NO FAULT OF THE EMPLOYEE.
The General Assembly of North Carolina enacts:
Section 1.  G. S. 105-134.6(b)(11) reads as rewritten:
"(11)	Severance wages received by a taxpayer from an employer as the result of the taxpayer's permanent, involuntary termination from employment through no fault of the employee.  The amount of severance wages deducted as the result of the same termination may not exceed thirty-five thousand dollars ($35,000) for all taxable years in which the wages are received."
Section 2.  This act is effective for taxable years beginning on or after January 1, 1998.