Bill Summary for H 873 (2023-2024)

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Summary date: 

Apr 26 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
House Bill 873 (Public) Filed Tuesday, April 25, 2023
Intro. by Bradford, Setzer, Kidwell, Wray.

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Bill summary

Amends GS 105-160.2 (Imposition of tax) creating new subsection (a) from existing language. Specifies the tax imposed on estates and trusts under the section is imposed for each taxable year. Makes the rate of tax levied under the section the rate provided in GS 105-153.7 (Individual income tax imposed). Requires the fiduciary responsible for the estate or trust to pay the tax. 

Creates new subsection (b) from existing language, and specifies the state-sourced taxable income of the estate or trust including income from real or personal property in the state, and income derived from a business or occupation carried on in the state. 

Creates new subsection (c) governing the taxability of benefits received from estates when certain residency requirements apply to the decedent and beneficiary. 

Creates new subsection (d) establishing that the taxable income of a trust includes taxable income for the benefit of a resident of the state when the trust is administered in the state. 

Creates new subsection (e), taxing long-term estates open more than 50 years after the death of the decedent as a trust. 

Effective for taxable years beginning on or after January 1, 2023.