GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 1445
     

 
Short Title:	Simplify Taxation of Financial Institutions.	()	
Sponsors:	Representative Luebke.	
Referred to:	Financial Institutions, if favorable, Finance.	
May 10, 2001

A BILL TO BE ENTITLED
AN ACT TO SIMPLIFY THE TAXATION OF FINANCIAL INSTITUTIONS BY REPEALING THE STATE PRIVILEGE LICENSE TAX IMPOSED ON THEIR ASSETS AND BY CONFORMING TO FEDERAL LAW.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑102.3 is repealed.
SECTION 2.  G.S. 105‑130.5(a) is amended by adding a new subdivision to read:
"(2a)	An amount equal to thirty‑five percent (35%) of that portion of a financial institution's interest expense that is allocable to interest income exempt from taxation under this Part. The allocable portion of the interest expense is the portion for which deduction would be disallowed pursuant to section 265(b) of the Code if the interest were earned on a tax-exempt obligation as defined in section 265(b) of the Code."
SECTION 3.  Section 1 of this act becomes effective for taxes due on or after July 1, 2002. The remainder of this act is effective for taxable years beginning on or after January 1, 2002.