NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 716

SENATE BILL 18

 

 

AN ACT TO AMEND G.S. 105-141 AND G.S. 105-149 RELATING TO COMBAT PAY AND INCOME TAX EXEMPTIONS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 105-141 (b) is hereby amended by adding at the end thereof a new subdivision to be designated as subdivision (12) and reading as follows:

"(12)    Compensation received for active service as a member of the Armed Forces of the United States below the grade of commissioned officer, and so much of the compensation of a commissioned officer in such Armed Forces as does not exceed five hundred dollars ($500.00), for any month during any part of which such member served in a combat zone during any induction period, or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone during an induction period, except that this subdivision shall not apply for any month during any part of which there are no combatant activities in the combat zone. For the purposes of this subdivision the term 'commissioned officer' does not include a warrant officer; the term 'combat zone' means an area which the President of the United States by executive order designates as an area in which Armed Forces of the United States are or have been engaged in combat; service is performed in a combat zone only if performed on or after the date designated by the President by executive order as the date of the commencing of combatant activities in such zone; the term 'compensation' does not include pension and retirement pay; and the term 'induction period' means any period during which individuals are liable for induction for training and service in the Armed Forces of the United States."

Sec. 2.  G.S. 105-149(a) is hereby amended as follows:

(1)        Striking from the first sentence of subdivision (5) "Three hundred dollars ($300.00)" and inserting in lieu thereof the following: "Six hundred dollars ($600.00)".

(2)        Inserting between the first and second paragraphs of subdivision (5) the following: "An additional exemption of six hundred dollars($600.00) for a dependent (as defined in this subdivision) who is a fulltime student at an accredited college or university or other institution of higher learning under such rules or regulations as may be prescribed by the Commissioner of Revenue. For the purposes of this paragraph, the words 'full-time student' shall mean a dependent enrolled in full-time study on the last day of the income year or enrolled for full-time study for a period of at least five months (whether or not consecutive) during the income year."

(3)        Striking from the last paragraph of subdivision (5) "three hundred dollar ($300.00)" and inserting in lieu thereof the following: "six hundred dollar ($600.00)".

(4)        Adding at the end of subsection (a) a new subdivision to be designated as subdivision (9) reading as follows: "(9) In the case of an individual who has reached the age of 65 years on or before the last day of the taxable year, an exemption of one thousand dollars ($1,000.00) in addition to all other exemptions allowed by this Section."

Sec. 3.  G. S. 105-163.1(3) is hereby amended by striking therefrom "three-hundred-dollar ($300.00)" and inserting in lieu thereof the following: "six hundred dollar ($600.00)".

Sec. 4.  All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.

Sec. 5.  This Act shall be in full force and effect for income years beginning on or after January 1, 1968.

In the General Assembly read three times and ratified, this the 7th day of June, 1967.