Senate Bill 628–Various Changes to Revenue Laws

NCACPA was highly involved in the drafting of this legislation, which made numerous technical changes to the North Carolina tax code. NCACPA’s Tax Modernization Task Force made recommendations to lawmakers clarifying recent changes to the sales tax laws related to RMI services, and provided language found in this bill.

In meetings with legislators, NCACPA also brought attention to an issue with GS 105-122(d) regarding how a corporation’s franchise tax base was calculated. The Association pointed out that indebtedness related to real estate no longer reduced the taxable base for franchise tax purposes, and that this drastically increased the tax for many North Carolina corporations. This was an unintended change in 2015 that was corrected in this legislation.

Additionally, a provision proposed by NCACPA was included, directing the NC Department of Revenue to conduct a feasibility and cost study of allowing the “pass-through of a federal extension of time for filing a federal income tax return to serve as an application for a State extension of time for filing corporate franchise and other income tax returns.” The DoR completed this study in January of 2018, and the Association is still ardently working with the Department and lawmakers to eliminate the state extension form requirement.

August 2017