NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 405

HOUSE BILL 976

 

 

AN ACT TO EXEMPT FROM INTANGIBLES TAX UNITS OF OWNERSHIP IN INVESTMENT TRUSTS COMPOSED PRINCIPALLY OF NORTH CAROLINA OBLIGATIONS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 105-203 is amended by adding thereto a new paragraph, immediately after the second paragraph thereof, to read as follows:

"The tax herein levied shall not apply to units of ownership in an investment trust, the corpus of which is composed (1) entirely of obligations of this State or (2) entirely of obligations of the United States and of this State, at least eighty percent (80%) of the fair market value of which represents obligations of this State. For the purpose of this paragraph, 'State' includes the State of North Carolina, political subdivisions of this State, and agencies of such governmental units; 'United States' includes the United States and its possessions, and the District of Columbia; 'obligations' includes bonds, notes and other evidences of debt. In order for the exemption provided for in this paragraph to apply, it shall be the duty of the trustees of an investment trust to provide to the Secretary of Revenue, in form satisfactory to him and not later than December 31 of the year with respect to which the exemption applies, information sufficient to establish the applicability of this exemption."

Sec. 2.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 18th day of April, 1979.