Enacts new subsection (c) to GS 105-134.2, stating that the tax rate imposed on the net business income of a taxpayer receiving income from a small business for a taxable year may not exceed by more than 2% the rate imposed on a corporation under GS 105-130.3. Specifies that a small business is a business with cumulative gross receipts from all business activity in a taxable year totaling $850,000 or less. Also specifies that business income does not include income considered passive income under the Internal Revenue Code. Effective for taxable years beginning on or after January 1, 2011. Makes other technical and conforming changes.
Effective for taxable years beginning on or after January 1, 2012, amends GS 105-134.2, as amended by this act, to provide that the small business tax rate may not exceed by more than 1% the rate imposed on a corporation.
Effective for taxable years beginning on or after January 1, 2013, amends GS 105-134.2, as amended by this act, to provide that the small business tax rate may not exceed the rate imposed on a corporation.