NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 1087

SENATE BILL 155

 

 

AN ACT AMENDING THE INDIVIDUAL INCOME TAX ACT SO AS TO ALLOW A WIFE TO CLAIM HER HUSBAND'S TWO THOUSAND DOLLAR PERSONAL EXEMPTION BY AGREEMENT WITH HIM.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 105-149 is hereby amended as follows:

(1)        By striking all of subdivision (2) of subsection (a) thereof and substituting in lieu thereof the following language:

"(2)      In the case of a married man with a wife living with him, two thousand dollars ($2,000). Provided, that a husband living with his wife may by agreement with his wife allow her to claim the two thousand dollars ($2,000) exemption provided in this subsection and the husband in such case shall be entitled to claim an exemption of only one thousand dollars ($1,000), in which case the husband must file a return for the same year, regardless of whether he shall have reportable income for such year, and shall claim thereon only a one thousand dollar ($1,000) exemption exclusive of any other exemptions to which he may be entitled under this subsection."

(2)        By striking from the second line of the fourth paragraph of subdivision (5) of subsection (a) the words "entitled to" and inserting in lieu thereof the word "claiming". G.S. 105-149(5) (a) after amendment, will then read as follows:

"The exemption provided in this subdivision for children of taxpayers shall be allowed only to the person claiming the two thousand dollar ($2,000) exemption provided in subdivision (2) of this subsection except, however, that where husband and wife are divorced and have children of their marriage for which they would otherwise be entitled to an exemption hereunder, the parent furnishing the chief support of his (or her) child during the income year shall be entitled to said exemption, irrespective of whether said parent has custody of said child or children or is head of the household during said year."

Sec. 2.  G.S. 105-147 is hereby amended by changing the period at the end of subdivision b.3. of subsection (11) thereof to a comma and adding at the end thereof the following: "or those individuals for whom a dependency exemption is allowed under that subdivision." G.S. 105-147(11)b.3., after amendment, will then read as follows:

"3.        The term "dependents" means those individuals qualifying as dependents under the provisions of subdivision (5) of subsection (a) of G.S. 105-149, or those individuals for whom a dependency exemption is allowed under that subdivision."

Sec. 3.  This act shall become effective for income years beginning on or after January 1, 1972.

In the General Assembly read three times and ratified, this the 21st day of July, 1971.