North Carolina § 105-130 - 3. (Effective for taxable years beginning on or after January 1, 2017, and before January 1, 2019) Corporations.

§ 105-130. 3. (Effective for taxable years beginning on or after January 1, 2017, and before January 1, 2019) Corporations.

A tax is imposed on the State net income of every C Corporation doing business in this State at the rate of three percent (3%). An S Corporation is not subject to the tax levied in this section. History (1939, c. 158, s. 311; 1941, c. 50, s. 5; 1943, c. 400, s. 4; 1945, c. 752, s. 3; 1953, c. 1302, s. 4; 1955, c. 1350, s. 18; 1957, c. 1340, s. 4; 1959, c. 1259, s. 4; 1963, c. 1169, s. 2; c. 1186; 1967, c. 1110, s. 3; 1973, c. 1287, s. 4; 1975, c. 275, s. 4; 1977, c. 657, s. 4; 1979, c. 179, s. 2; 1981, c. 15; 1983, c. 713, s. 69; 1987, c. 622, s. 8; 1987 (Reg. Sess., 1988), c. 1089, s. 5; 1989, c. 728, s. 1.33; 1991, c. 689, s. 258; 1996, 2nd Ex. Sess., c. 13, s. 2.1; 2013-316, ss. 2.1(a), 2.2(a); 2015-241, s. 32.13(a); 2017-57, s. 38.5(a).) Section Set Out Twice. - The section above is in effect for taxable years beginning on or after January 1, 2017 and before January 1, 2019. For this section as in effect for taxable years beginning on or after January 1, 2019, see the following section, also numbered G.S. 105-130.3 . Editor's Note. - Session Laws 2013-316, s. 9(a), provides: "This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal." Session Laws 2013-316, s. 4.2(a), as amended by Session Laws 2015-6, s. 2.4(b), provides: "The Utilities Commission must adjust the rate set for the following utilities: "(1) Electricity to reflect the repeal of G.S. 105-116 and the resulting liability of electric power companies for the tax imposed under G.S. 105-122 , the increase in the rate of tax imposed on sales of electricity under G.S. 105-164.4 , and the reduction in the corporate income tax rate imposed under G.S. 105-130.3 . "(2) Piped natural gas to reflect the repeal of Article 5E of Chapter 105 of the General Statutes, the repeal of the credit formerly allowed under G.S. 105-122(d1) , the resulting liability of companies for the tax imposed on sales of piped natural gas under G.S. 105-164.4 , and the reduction in the corporate income tax rate imposed under G.S. 105-130.3 . "(3) Public water and wastewater companies to reflect the repeal of G.S. 105-116 and the resulting liability of public water and wastewater companies under G.S. 105-122 , and the reduction in the corporate income tax rate imposed under G.S. 105-130.3 ." Session Laws 2015-6, s. 2.4(a), provides: "The purpose of this section is to clarify the intent of the 2013 Session of the General Assembly that the Utilities Commission must adjust the rate for sales of electricity, piped natural gas, and water and wastewater services to reflect all of the tax changes as enacted in S.L. 2013-316." Session Laws 2015-6, s. 2.4(c), provides: "The Utilities Commission must order a utility to add interest to money refunded to its customers for refunds resulting from the reduction of the corporate income tax rate effective for taxable years beginning on or after January 1, 2014. Refunds subject to interest shall not include any amounts to be refunded arising from excess deferred income taxes due to the reduction in the corporate income tax rate effective for taxable years beginning on or after January 1, 2014. The interest rate applied to the refund must be set in accordance with G.S. 62-130 ." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.6, is a severability clause. Effect of Amendments. - Session Laws 2013-316, s. 2.1(a), effective for taxable years beginning on or after January 1, 2014, added "at the rate of six percent (6%)" at the end of the first sentence and deleted the former third sentence, which read "The tax is a percentage of the taxpayer's State net income computed as follows" and the table thereafter. Session Laws 2013-316, s. 2.2(a), effective for taxable years beginning on or after January 1, 2015, substituted "five percent (5%)" for "six percent (6%)" in the first sentence. Session Laws 2015-241, s. 32.13(a), effective for taxable years beginning on or after January 1, 2016, substituted "four percent 4%" for "five percent (5%)" at the end of the first sentence. Session Laws 2017-57, s. 38.5(a), effective for taxable years beginning on or after January 1, 2017, substituted "three percent (3%)" for "four percent (4%)" at the end of the first sentence. Legal Periodicals. - For article, "Foreign Corporations in North Carolina: The 'Doing Business' Standards of Qualification, Taxation, and Jurisdiction," see 16 Wake Forest L. Rev. 711 (1980). For article, "A Time for Action: Reforming the North Carolina Tax Code," see 88 N.C.L. Rev. 1A (2010).