S710: A Tax Plan for a Just Recovery. Latest Version



AN ACT to enact a tax plan for a just recovery.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.7(a) reads as rewritten:

(a)      Tax. – A tax is imposed for each taxable year on the North Carolina taxable income of every individual. The tax shall be levied, collected, and paid annually. The tax is five and one‑quarter percent (5.25%) of the taxpayer's North Carolina taxable income.annually and shall be computed at the following percentages of the taxpayer's North Carolina taxable income:

(1)        For married, filing jointly, and surviving spouses:

Over                                            Up To                                        Rate

‑0‑                                                $500,000                                    5.25%

$500,000                                      $1,000,000                                 6.50%

$1,000,000                                   N/A                                            7%

(2)        For heads of household:

Over                                            Up To                                        Rate

‑0‑                                                $375,000                                    5.25%

$375,000                                      $750,000                                    6.50%

$750,000                                      N/A                                            7%

(3)        For single:

Over                                            Up To                                        Rate

‑0‑                                                $250,000                                    5.25%

$250,000                                      $500,000                                    6.50%

$500,000                                      N/A                                            7%

(4)        For married, filing separately:

Over                                            Up To                                        Rate

‑0‑                                                $250,000                                    5.25%

$250,000                                      $500,000                                    6.50%

$500,000                                      N/A                                            7%.

SECTION 2.  G.S. 105‑130.3 reads as rewritten:

§ 105‑130.3.  Corporations.

A tax is imposed on the State net income of every C Corporation doing business in this State at the rate of two and one‑half percent (2.5%). five percent (5%). An S Corporation is not subject to the tax levied in this section.

SECTION 3.  This act is effective for taxable years beginning on or after January 1, 2021.