Amends GS 105-153.5, enacting two distinct deductions for individual taxpayers, the effectiveness of which relies on thresholds set for net General Fund tax collected in a fiscal year. When the amount of net General Fund tax collected in a fiscal year exceeds $23.838 billion, a taxpayer may deduct amounts received from a federal retirement plan for a retired member of the US Armed Forces or as survivorship benefits for survivors of active duty or retired US Armed Forces members, effective for the taxable year that begins the following January 1. When the amount of net General Fund tax collected in a fiscal year exceeds $24.238 billion, a taxpayer may deduct the amounts received from State, local, or federal retirement plans, effective for the taxable year that begins the following January 1. Defines net General tax collected for a fiscal year as the amount reported by the Department of Revenue as the Total General Fund Revenue on its June final Statement of Collection, less any large one-time, non-recurring revenue as specified, and adjusted by any changes in net collections resulting from the suspension or termination of transfers out of General Fund collections. Requires the Secretary of Revenue to notify taxpayers when the enacted deductions become effective. Bars deducting the described amounts under both deduction provisions enacted, or the existing deduction provision for certain amounts from State, local, or federal retirement plans as well.
Bill S 4 (2021-2022)Summary date: Jan 27 2021 - View summary