Vote Smart's Synopsis:

Vote to override the governor's veto and pass a bill that amends the state's tax laws to conform to various federal changes in the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018.

Highlights:

• Authorizes cities to levy property taxes to supplement funding for both public and charter elementary and secondary schools (Sec. 38.8).

• Repeals a provision that required funds withdrawn from a 529 education savings plan to be counted as taxable income, specifically if such funds are spent on primary or secondary education or are rolled over into an ABLE account for individuals with disabilities (Sec. 38.1).

• Repeals a provision that excludes funds deposited into a Personal Education Savings Account (PESA) from taxable income (Sec. 38.10).

• Authorizes an automatic extension for filing a state tax return at the time a taxpayer is granted a federal income tax return extension (Sec. 38.4).

• Repeals a provision that limited the extension time for filing a sales tax return to 30 days after the regular due date of the return (Sec. 38.5).

• Authorizes a tax exemption for foreign source income of controlled foreign corporation subsidiaries (Sec. 38.1).

• Repeals the gross income exclusion for contributions to the capital of a corporation by government entities and civic groups not acting in a shareholder capacity (Sec. 38.2).

• Authorizes a retailer who pays sales and use tax on property or services and subsequently resells it at retail price to recover the sales tax originally paid to a seller (Sec. 38.5).

• Specifies that the income tax applicable to unrelated business income of a nonprofit organization does not include amounts paid or incurred by a 501(c)(3) organization for transportation and parking benefits it provides to its employees (Sec. 38.2).

• Establishes an excise tax rate reduction for modified risk tobacco products (Sec. 38.7).

Full Bill Text

Vote Smart's Synopsis:

Vote to override the governor's veto and pass a bill that amends the state's tax laws to conform to various federal changes in the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018.

Highlights:

• Authorizes cities to levy property taxes to supplement funding for both public and charter elementary and secondary schools (Sec. 38.8).

• Repeals a provision that required funds withdrawn from a 529 education savings plan to be counted as taxable income, specifically if such funds are spent on primary or secondary education or are rolled over into an ABLE account for individuals with disabilities (Sec. 38.1).

• Repeals a provision that excludes funds deposited into a Personal Education Savings Account (PESA) from taxable income (Sec. 38.10).

• Authorizes an automatic extension for filing a state tax return at the time a taxpayer is granted a federal income tax return extension (Sec. 38.4).

• Repeals a provision that limited the extension time for filing a sales tax return to 30 days after the regular due date of the return (Sec. 38.5).

• Authorizes a tax exemption for foreign source income of controlled foreign corporation subsidiaries (Sec. 38.1).

• Repeals the gross income exclusion for contributions to the capital of a corporation by government entities and civic groups not acting in a shareholder capacity (Sec. 38.2).

• Authorizes a retailer who pays sales and use tax on property or services and subsequently resells it at retail price to recover the sales tax originally paid to a seller (Sec. 38.5).

• Specifies that the income tax applicable to unrelated business income of a nonprofit organization does not include amounts paid or incurred by a 501(c)(3) organization for transportation and parking benefits it provides to its employees (Sec. 38.2).

• Establishes an excise tax rate reduction for modified risk tobacco products (Sec. 38.7).

Full Bill Text

Vetoed by Governor Roy Cooper III