Bill Text: NC H96 | 2013-2014 | Regular Session | Amended
Bill Title: Equal Tax Treatment of Gov't Retiree Benefits
Spectrum: Moderate Partisan Bill (Republican 7-2)
Status: (Introduced - Dead) 2013-03-21 - Re-ref Com On Finance [H96 Detail]
Download: North_Carolina-2013-H96-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 1
HOUSE BILL 96
Short Title: Equal Tax Treatment of Gov't Retiree Benefits. |
(Public) |
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Sponsors: |
Representatives Cleveland and Boles (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
Government, if favorable, Finance. |
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February 14, 2013
A BILL TO BE ENTITLED
AN ACT to provide equal income tax treatment of government retirees' benefits.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑134.1(13) reads as rewritten:
"(13) Retirement benefits. – Amounts paid to a
former employee or the beneficiary of a former employee under aplan. – A
written retirement plan established by the employer to provide payments to an
employee or the beneficiary of an employee after the end of the employee's
employment with the employer where the right to receive the payments is based
upon the employment relationship. With respect to a self‑employed
individual or the beneficiary of a self‑employed individual, the term
means amounts paid to the individual or beneficiary of the individual under a
written retirement plan established by the individual to provide payments to
the individual or the beneficiary of the individual after the end of the self‑employment.
In addition, the term includes amounts received from an individual
retirement account described in section 408 of the Code or from an individual
retirement annuity described in section 408 ofan individual retirement
plan as defined in the Code and any plan treated as an individual retirement
plan under the Code. For the purpose of this subdivision, the term "employee"
includes a volunteer worker."
SECTION 2. G.S. 105‑134.6(b) is amended by adding a new subdivision to read:
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct any of the following items to the extent those items are included in the taxpayer's adjusted gross income.
…
(5c) The amount received during the taxable year from one or more State, local, or federal government retirement plans, subject to the phase‑in provided in this subdivision:
Taxpayer Vested in the Plan
on or before: Income Years Beginning
August 1992 In 2013
August 1995 In 2014
August 1998 In 2015
August 2001 In 2016
August 2004 In 2017
August 2007 In 2018
August 2010 In 2019
August 2013 In 2020
August 2016 In 2021"
SECTION 3. G.S. 105‑134.6(b) reads as rewritten:
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct any of the following items to the extent those items are included in the taxpayer's adjusted gross income.
…
(6) a. An
amount, not to exceed four thousand dollars ($4,000), equal to the sum of the
amount calculated in subparagraph b. plus the amount calculated in subparagraph
c.
b. The amount calculated in this
subparagraph is the amount received during the taxable year from one or more
state, local, or federal government retirement plans.
c. The amount calculated in this
subparagraph is theThe amount received during the taxable year from
one or more retirement plans other than state, local, or federal government
retirement plans, not to exceed a total of two thousand dollars ($2,000) in any
taxable year.
d. Inyear. In the case of a
married couple filing a joint return where return, if both
spouses received retirement benefits during the taxable year, the maximum
dollar amounts provided in this subdivision for various types of retirement
benefits applyamount applies separately to each spouse's benefits.
(6a) The amount received during the taxable year under North Carolina State and local government retirement plans and under federal government retirement plans.
(6b) The greater of the following:
a. The amount received during the taxable year under a state or local government retirement plan of a state other than North Carolina, to the extent that other state would not subject to individual income tax the equivalent amount received under a North Carolina State or local government retirement plan.
b. Up to four thousand dollars ($4,000) received during the taxable year under a state or local government retirement plan of a state other than North Carolina. In the case of a married couple filing a joint return, if both spouses received benefits from a retirement plan during the taxable year, the maximum dollar amount applies separately to each spouse's benefits."
SECTION 4. Section 2 of this act is effective for taxable years beginning on or after January 1, 2013. Section 2 of this act is repealed for taxable years beginning on or after January 1, 2022, and Section 3 of this act is effective for taxable years beginning on or after January 1, 2022. The remainder of this act is effective when it becomes law.