AN ACT TO SEND A TAX REFUND TO TAXPAYERS WITH A NET NORTH CAROLINA TAX LIABILITY FOR 2018 AND MAKE OTHER CONFORMING CHANGES.
Senate committee substitute to the 2nd edition deletes the content of the previous edition and replaces it with the following.
Directs the Department of Revenue (DOR) to issue refund checks for overpayments that result from a tax credit allowed to a qualifying North Carolina taxpayer. Directs DOR to automatically apply the credit to a qualifying taxpayer's tax return instead of a qualifying taxpayer claiming the tax credit. Requires that an explanatory insert be included with the check. Requires that the checks be mailed by December 15, 2019, for taxpayers who filed an individual income tax return for the 2018 taxable year on or before August 1, 2019, or by February 1, 2020, for taxpayers who filed an individual income tax return for the 2018 taxable year after August 1, 2019, and on or before October 15, 2019. Sets the refund amount as the lesser of the amount of tax due or the following: (1) $250 for married filing jointly; (2) $125 for all other taxpayers. Requires a taxpayer to have filed an individual income tax return for 2018 by October 15, 2019, in order to qualify for the refund. Provides that a tax refund issued under these provisions is subject to overpayment setoff under GS Chapter 105A, the Setoff Debt Collection Act, or under another setoff debt collection program authorized by law. Requires the State Controller to reserve funds necessary to issue the refunds from the General Fund, and provides that to the extent the funds are required to be appropriated, the funds are appropriated.
Appropriates $5,560,000 in nonrecurring funds for 2019-20 from the General Fund to DOR to cover costs incurred for implementing these requirements. Also appropriates $12.5 million in nonrecurring funds for 2019-20 from the Collections Assistance Fee Special Fund to DOR for costs associated with tax systems operations and maintenance upgrades.
Makes conforming changes to the act's titles.
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