Decreases the individual income tax set out in GS 105-153.7(a) from 5.25% to 4.99%.
Increases the standard deductions set forth in GS 105-153.5(a)(1): from $21,500 to $25,500 for married, filing jointly; from $16,125 to $19,125 for head of household; and from $10,750 to $12,750 for single and married, filing separately.
Increases the current child deduction amounts set forth in GS 105-153.5(a1) by $500 for each filing category based on existing adjusted gross income (ADI) ranges. Expands the statute to add new child deduction amounts for the following ADI ranges. Provides a $500 deduction amount for: married, filing jointly with ADI over $120,000 and up to $140,000; for head of household with ADI over $90,000 and up to $105,000; and for single or married, filing separately with ADI over $60,000 and up to $70,000.
Makes the above provisions effective for taxable years beginning on or after January 1, 2022.
Amends GS 105-122(d) to explicitly restrict a corporation's tax base to the proportion of its net worth apportioned to the State under subsection (c1). No longer provides for the tax base to be the greater of its apportioned net worth, the percentage of the corporation's appraised value or the corporation's total actual investment in tangible property in the State. Makes similar changes regarding the tax base of a corporate controlled noncorporate limited liability companies under GS 105-114.1(b).
Changes the corporate tax rate under GS 105-120.2 to set the corporate income tax cap at $150,000. Eliminates existing provisions for the calculation of corporate tax using the existing tax rate of $1.50 per $1,000 applied to the greater of a a specified percentage of the corporation's appraised value or the corporation's total actual investment in tangible property in the State.
Effective for taxable years beginning on or after January 1, 2023, and applicable to the calculation of franchise tax reported on the 2022 and later corporate income tax return.
Bill S 337 (2021-2022)Summary date: Mar 23 2021 - More information
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