GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 2
SENATE BILL 575
Finance Committee Substitute Adopted 5/6/09
|
Short Title: Modify Corporate Apportionment Formula. |
(Public) |
|
|
Sponsors: |
|
|
|
Referred to: |
|
|
March 12, 2009
A BILL TO BE ENTITLED
AN ACT to encourage the location and expansion of capital intensive companies in this state.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑130.4 is amended by adding a new subsection to read:
"(s1) All apportionable income of a capital intensive corporation shall be apportioned by multiplying the income by the sales factor as determined under subsection (l) of this section. A 'capital intensive corporation' is a corporation whose property factor as a percentage of the sum of the factors in the formula set out in subsection (i) of this section, including the doubling of the sales factor, exceeds seventy‑five percent (75%). A corporation that is subject to this subsection must list on its return the property, payroll, and sales factors it used in determining whether it is a capital intensive corporation."
SECTION 2. G.S. 105‑130.4(i) reads as rewritten:
"(i) All apportionable income of corporations
other than public utilities and excluded corporations utilities, excluded
corporations, and capital intensive corporations shall be apportioned to
this State by multiplying the income by a fraction, the numerator of which is
the property factor plus the payroll factor plus twice the sales factor, and
the denominator of which is four. Provided, that where If the
sales factor does not exist, the denominator of the fraction shall be is
the number of existing factors and where if the sales factor
exists but the payroll factor or the property factor does not exist, the
denominator of the fraction shall be is the number of existing
factors plus one."
SECTION 3. This act is effective for taxable years beginning on or after January 1, 2010.