NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 701

HOUSE BILL 427

 

 

AN ACT TO AMEND G.S. 105-204, RELATING TO THE BENEFICIAL INTEREST IN FOREIGN TRUSTS, SO AS TO CLARIFY THE APPLICATION OF INTANGIBLE TAX TO THE INTEREST IN SUCH FOREIGN TRUSTS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 105-204 is hereby amended by adding at the end thereof a new paragraph to read as follows:

"The value of the corpus of such trust, trust fund or trust account shall not be considered in computing taxable value hereunder, unless the person subject to the tax:

(1)        Has the right to the present possession of an interest therein, and then only to the extent of the value of such present interest; or

(2)        Has the present right to receive a part or all of the income realized from the corpus of such trust, and then only to the extent of the present value of such income interest; or

(3)        Has created the trust and reserved for himself an income or reversionary or remainder interest therein, and then only to the extent of the present value of such interest."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  The provisions of this Act shall not be considered, one way or another, in determining the tax liability or the method of computing the tax liability of a taxpayer for any year prior to the effective date of this Act under the statute as then in effect.

Sec. 4.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 6th day of June, 1967.