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UNC
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SCHOOL OF GOVERNMENT
The Daily Bulletin: 2024-05-15
PUBLIC/HOUSE BILLS
H 228 (2023-2024) REV. LAWS TECH., CLARIFYING, & ADMIN. CHNGS. Filed Feb 28 2023. AN ACT TO MAKE VARIOUS
TECHNICAL, CLARIFYING, AND ADMINISTRA TIVE CHANGES TO THE REVENUE LA ITS, TO MAKE TECHNICAL CHANGES TO
THE MEDICAID HOSPITAL ASSESSMENT STATUTES, AND TO UPDATE THE DEFINITION OF A THRESHOLD EXCLUSION.
House committee substitute to the 1st edition makes the following changes.
Section 2.2 of the act. previously Section 2.5, amends GS 105-164.3 by amending the definition of the Streamlined Agreement
to now refer to the Streamlined Sales and Use Tax Agreement as amended as of November 7. 2023.
Removes the remaining content of the 1st edition and replaces it with following new content.
Parti.
Repeals GS 105-1 60 .4(f). which, effective for taxable years beginning on or after January 1. 2022, did not allow fiduciaries
and beneficiaries of estates and trusts who are shareholders of a taxed S Corporation a credit for taxes paid by the estates and
trusts or by the taxed S Corporation to another state or country on income that is taxed to the taxed S Corporation. Also repeals
(g), which effective for taxable years beginning on or after January 1 , 2022. did not allow fiduciaries and beneficiaries of
estates and trusts who are partners of a taxed partnership a credit for taxes paid by the estates and trusts or by the taxed
partnership to another state or country on income that is taxed to the taxed partnership. Effective for taxable years beginning on
or after January 1.2023.
Adds and defines the following terms in GS 105-153.3, as they apply to the Individual Income Tax Act. Defines income
attributable to the State as either (1) with respect to a partnership, all items of income, loss, deduction, or credit of the
partnership apportioned and allocated to this State under GS 105-130.4 (allocation and apportionment of income for
corporations) or (2) with respect to an S Corporation. Defines income not attributable to the State as either: (1 ) with respect to
a partnership, all items of income, loss, deduction, or credit of the partnership other than income attributable to the State or (2)
with respect to an S Corporation. Effective for taxable years beginning on or after January 1, 2023.
Amends GS 105-153.8 by amending the provisions concerning the filing ofjoint income tax returns to require two lawfully
married individuals who are required to file an income tax return and whose adjusted gross income is determined on a joint
federal return to file a joint state income tax return. Provides that if two lawfully married individuals file a joint federal return,
but only one is required to file a state income tax return, that individual must file the income tax return as either: (1) jointly
based on the filing status of married, filing jointly/surviving spouse or (2) separately based on the filing status of married filing
separately. Makes conforming and clarifying changes.
Amends the following statutes to provide that a taxpayer or fiduciary (as applicable) may receive an extension of time to file a
tax return (was, may ask the Secretary for an extension of time): GS 105-155.GS 105-160.6, GS 105-130. 17, and GS 105-129.
Part 11.
Amends GS 1 05- 1 64.8 by amending two of the ten triggers for when a retailer makes a remote sale is engaged in business in
this State and subject to sales tax, to now include: (1) a retailer who makes gross sales in excess ofSIOO.OOO from remote sales
sourced to this State, including sales as a marketplace seller, for the previous or current calendar year (no longer includes
remote sales sourced into this State that are in 200 or more separate transactions) and (2) a marketplace facilitator who makes
gross sales in excess ofSIOO.OOO, including all marketplace-facilitated sales for all marketplace sellers, from sales sourced to
this State for the previous or current calendar year (no longer includes sales sourced into this State that are in 200 or more
separate transactions). Effective July 1. 2024. Specifies that a person holding a certificate of registration with the Department
as of June 30, 2024, and is solely engaged in business in the State because the person exceeds the 200 transaction threshold
