AN ACT TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE, TO DECOUPLE FROM CERTAIN PROVISIONS OF THE FEDERAL TAX INCREASE PREVENTION ACT OF 2014, TO MODIFY THE MOTOR FUELS TAX RATE, AND TO MAKE CERTAIN REDUCTIONS WITHIN THE DEPARTMENT OF TRANSPORTATION FOR THE 2014-2015 FISCAL YEAR.
Conference report makes the following changes to the 5th edition.
Amends GS 105-153.5(a)(2)a., concerning calculating itemized deduction amounts to provide that a taxpayer electing to take the income exclusion under section 408(d)(8) of the Internal Revenue Code (Code) for taxable year 2014, for a qualified charitable distribution from an individual retirement plan of a person who has reached the age of 70 and 1/2, may deduct the amount that would have been allowed as a charitable deduction under section 170 of the Code if the taxpayer had not elected to to take the income exclusion.
Provides that the following items that are not included in the taxpayer's adjusted gross income must be added to the taxpayer's adjusted gross income in calculating North Carolina taxable income, for taxable year 2014: (1) the amount excluded from the taxpayer's gross income for the discharge of qualified principal residence indebtedness under section 108 of the Code; (2) the amount of the taxpayer's deduction for qualified tuition and related expenses under section 222 of the Code; and (3) the amount excluded from the taxpayer's gross income for a qualified charitable distribution from an individual retirement plan by a person who is 70 and 1/2 years old under section 408(d)(8) of the Code.
Deletes all the provisions of subsections (a) and (b) of GS 105-449.80 and replaces them as follows. Amends GS 105-449.80 to set the motor fuel excise tax rate at a flat rate of thirty-five cents per gallon for the period beginning in January 1, 2016 and ending on June 30, 2016. Makes the flat rate thirty-four cents for the period from July 1, 2016and ending on December 31, 2016. Sets the flat rate at thirty-four cents per gallon, multiplied by a percentage, for the calendar year that begins on January 1, 2017. Provides that for calendar years beginning on or after January 1, 2018, the motor fuel excise tax rate is the amount for the preceding year, multiplied by a percentage. Provides that the percentage is 100% plus or minus the sum of the following: (1) the percentage change in population for the applicable calendar year as estimated under GS 143C-2-2, multiplied by 75%; (2) the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI), multiplied by 25%. Defines CPI as it is used in this context. Requires the Secretary to notify affected taxpayers of the tax rate to be in effect for each calendar year (was, for each six-month period) beginning January 1.
Makes conforming changes to GS 105-449.107(c) to reflect the changes to GS 105-449.80.
Amends GS 150B-2(8a)j. to delete reference to the interest rate that applies to tax assessments under the variable component of the excise tax on motor fuel under GS 105-449.80, as not included as a "rule" as defined GS 150B-2(8a). Effective January 1, 2016.
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