MILITARY RETIREE STATE INCOME TAX RELIEF. (NEW)

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View NCGA Bill Details2017-2018 Session
Senate Bill 153 (Public) Filed Wednesday, March 1, 2017
AN ACT TO PROVIDE INCOME TAX RELIEF FOR RETIRED MEMBERS OF THE ARMED FORCES OF THE UNITED STATES AND OTHER VARIOUS CHANGES.
Intro. by Rabin, Sanderson, Britt.

Status: Re-ref Com On Rules, Calendar, and Operations of the House (House Action) (Jun 20 2018)

SOG comments (2):

Long title change

Senate committee substitute to the 1st edition changed the long title. Original long title was AN ACT TO PROVIDE INCOME TAX RELIEF FOR MEMBERS OF THE ARMED FORCES OF THE UNITED STATES.

Long title change

House committee substitute to the 2nd edition changed the long title. Previous long title was AN ACT TO PROVIDE INCOME TAX RELIEF FOR RETIRED MEMBERS OF THE ARMED FORCES OF THE UNITED STATES.

S 153

Bill Summaries:

  • Summary date: Jun 15 2018 - View Summary

    House committee substitute makes the following changes to the 2nd edition.

    Changes the effective date of the changes to GS 105-153.5 to January 1, 2018.

    Adds the following.

    Part II.

    Enacts new GS Chapter 143, Article 12I (Special Separation Allowances for State and Local Firefighters and Rescue Squad Workers).

    Applies to firefighters and rescue squad workers employed by State departments, agencies, or institutions.

    Provides firefighters or rescue squad workers who meet specified criteria with an annual separation allowance equal to .85% of the annual equivalent of the base rate of compensation most recently applicable to the firefighter for each year of creditable service, to be paid in equal installments on the payroll frequency used by the employer, beginning in the month in which the individual retires under basic service retirement. To qualify, the individual must have either completed 30 or more years of creditable service or attained 60 years of age with 25 or more years of creditable service; must have not attained 62 years of age; and must have completed at least five years of continuous service rendered on or after July 1, 2017, as a firefighter or rescue squad worker immediately preceding a service retirement. Payment ceases upon death; the last day of the month in which the individual attains 62 years of age; or the first day of reemployment by any State department, agency or institution, or local government employer in any capacity, with certain exceptions required by other statutes. Does not affect other State, local, federal, or private retirement benefits. Directs the head of each state department, agency, or institution, or the governing body of a local employer, to determine the eligibility of employees for the benefits of this statute. Authorizes the Director of the Budget to authorize the transfer of funds within the budgets of each State department, agency, or institution to carry out the statute. Directs the head of each State department, agency, or institution, or governing body of a local employer, to make the payments described above. Sets out provisions for a special separation allowance for firefighters and rescue squad workers who participate in the Local Governmental Employees' Retirement System.

    New Article 12I is effective when it becomes law and applies to firefighters and rescue squad workers retiring on or after July 1, 2022, with at least five years of continuous service rendered on or after July 1, 2017.

    Part III.

    Amends GS 105-277.1C, concerning the disabled veteran property tax homestead exclusion, to change the classification of excluded property from the first $45,000 of the appraised value of the residence to the first $100,000. Defines hold harmless amount as the assessed value over $45,000 of a property excluded, multiplied by the applicable local tax rate. Adds and defines the term total hold harmless amount. Adds provision concerning reimbursement and requires the Secretary of Revenue to distribute to each county, by December 31 of each yer, its respective total hold harmless amount.

    Enacts GS 105-277.1E to provide for a property tax homestead exclusion for the surviving spouse of an emergency personnel officer who was killed in the line of duty, who is a North Carolina resident and has not remarried. Provides classification language that tracks the language of the disabled veteran property tax homestead exclusion in GS 105-277.1C(a), to exclude the entire appraised value of the residence from taxation. Defines emergency personnel officer to mean firefighting, search and rescue, or emergency medical services personnel or any employee of any duly accredited State or local government agency possessing authority to enforce the criminal laws of the State who (1) is actively serving in a position with assigned primary duties and responsibilities for prevention and detection of crime or the general enforcement of the criminal laws of the State and (2) possesses the power of arrest by virtue of an oath administered under the authority of the State. 

    Establishes that an owner does not lose the benefit of exclusion because of a temporary absence from the permanent residence for reasons of health or while confined to a rest home or nursing home, as long as the residence is unoccupied, or occupied by a dependent of the owner, other than a spouse. Establishes provisions concerning situations where there are multiple owners who are not husband and wife that track the exact language in the existing disabled veteran property tax homestead exclusion in GS 105-277.1C(e). 

    Provides that an application for the exclusion allowed under new GS 105-277.1E should be filed during the regular listing period, but can be filed and is required to be accepted at any time until June 1 preceding the tax year for which the exclusion is claimed. Allows persons to apply for the property tax relief by entering the appropriate information on a form made available by the assessor under GS 105-282.1. 

    Makes conforming changes to GS 105-282.1 to include the exclusions for the special classes of property established in GS 105-277.1C and GS 105-277.1E from taxation after submitting a single application for the benefit, as specified. 

    Effective for taxes imposed for taxable years beginning on or after July 1, 2019.

    Part IV.

    Amends GS 105-164.3 by amending the definition of property management contract to include contracts to manage residential and vacation properties. 

    Amends GS 105-164.13 to exempt from the retail sales and use tax property management contracts, with listed exclusions.

    Amends SL 2018-5, Section 38.5, by making subsection x and y, which also amend GS 105-164.3 and GS 105-164.13, effective January 1, 2017, instead of January 1, 2020.

    Effective when the act becomes law.

    Part V.

    Amends GS 105-278.2 to exempt from tax real property set apart for burial purposes owned and held for purposes of sale or rental or sale of burial rights. Sets out conditions under which the property no longer qualifies for the exemption. Defines burial to mean entombment and real property to include the following on the burial property: land, tombs, vaults, monuments, or mausoleums, or buildings, structures, improvements, or permanent fixtures. Makes conforming changes to GS 105-282.1(a).

    Effective for taxes imposed for taxable years beginning on or after July 1, 2019.

    Part VI.

    Amends GS 115C-218.45(f), removing requirement for the sibling of a student to have been enrolled in the charter school for the previous year in order for that student to have enrollment priority. 

    Part VII.

    Amends GS 105-164.13 to exempt from sales tax sales of a crane or an attachment or repair part for a crane that meets the specified requirements. Effective July 1, 2018, and applies to purchases made on or after that date.

    Part VIII.

    Amends GS 95-25.2, defining marketplace contractor and marketplace platform. Amends GS 95-25.14, exempting from the provisions of minimum wage, overtime, youth employment, and record keeping any marketplace contractor where an employer-employee relationship is deemed not to exist pursuant to GS 95-25.24B(a).  Enacts new section GS 95-25.24B, setting out that a marketplace contractor is not deemed to be an employee of a marketplace platform if it enters into a written contract with the marketplace platform which makes it an independent contractor, along with seven other provisions. Does not apply to a marketplace contractor at a physical business location or when services provided are transporting containers. Amends GS 97-13 to exempt marketplace contractors without an employer-employee relationship from the provisions of the Worker's Compensation Act. Effective July 1, 2018. 

    Makes conforming changes to the act's titles.


  • Summary date: Jun 27 2017 - View Summary

    Senate committee substitute makes the following changes to the 1st edition.

    Changes the long and short titles.

    Deletes the proposed changes to GS 105-153.4(a), which excluded from NC taxable income military pay of an active service member of any branch of the US Armed Forces for any period of time the service member is not present in the State if the service member is an NC resident and is not present solely in compliance with military orders reassigning the service member to a permanent duty station located outside the State.

    Makes conforming organizational changes.


  • Summary date: Mar 1 2017 - View Summary

    Amends GS 105-153.4, which sets forth provisions concerning North Carolina taxable income for individual state residents, to provide that North Carolina taxable income does not include the military pay of an active service member of any branch of the US Armed Forces for any period of time that the service member is not present in this State so long as the member is a North Carolina resident and the member is not present in North Carolina solely in compliance with military orders reassigning the member to a permanent duty station located outside of the state.

    Under GS 105-153.5, in calculating North Carolina taxable income, a taxpayer can deduct from the adjusted gross income the itemized deductions set out in subsection (b). This act adds new subdivision (5a) to establish a deduction for the amount received during the taxable year from the US government as retirement pay for a retired member of the US Armed Forces or as survivorship benefits for survivors of active duty or retired members of the US Armed Forces. Prohibits deduction for amounts under both subdivision (5a) and subdivision (5), which provides for a deduction for amounts from one or more State, local, or federal government retirement plans exempt from tax as specified. Makes conforming changes to subdivision (5).

    Effective for taxable years beginning on or after January 1, 2017.