GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION
CHAPTER 531
AN ACT TO CONFORM THE NORTH CAROLINA GENERATION SKIPPING TRANSFER TAX TO THE INTERNAL REVENUE CODE.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-7.1 reads as rewritten:
"§ 105-7.1. Generation skipping transfer tax.
(a) A tax in addition to
any other taxes imposed by this Article or by Article 6 of this Subchapter is
hereby imposed upon every generation skipping transfer subject to the tax
imposed by Chapter 13 of Subtitle B of the Code where the original transferor
is a resident of this State at the date of said the original
transfer, in an amount equal to the amount allowable as credit for State inheritance
generation skipping transfer taxes under section 2602 2604
of the Code, to the extent such the credit exceeds the
aggregate amount of all taxes on the same transfer actually paid to the several
states of the United States, other than this State.
(b) A tax, in addition to
all other taxes imposed by this Article and by Article 6 of this Subchapter, is
hereby imposed upon every generation skipping transfer subject to the tax
imposed by Chapter 13 of Subtitle B of the Code where the original transferor
is not a resident of this State but the transfer includes real or personal
property with a situs in this State, in an amount equal to the amount allowable
as a credit for state inheritance State generation skipping transfer taxes
under section 2602 2604 of the Code, reduced by an amount which
bears the ratio to the total state inheritance State generation
skipping transfer tax credit allowable for federal generation skipping
transfer tax purposes as the value of the transferred property taxable by all
other states bears to the value of the gross generation skipping transfer for
federal generation skipping transfer tax purposes.
(c) Every person required
by the Code to file a return reporting a generation skipping transfer shall
file a duplicate copy of said that return with the Secretary of
Revenue on or before the last day prescribed for filing the federal return.
(d) The tax herein
imposed shall be due upon a taxable distribution or distribution, a taxable
termination termination, or a direct skip as determined under the
provisions of the federal generation skipping transfer tax. The person
liable for payment of the aforesaid federal tax shall also be liable for the
tax imposed herein, and same the tax shall be paid to the
Secretary of Revenue on or before the last day allowed for filing the return
required hereunder.
(e) If after the filing
of the duplicate federal return with the Secretary of Revenue as required by
subsection (c) herein, the federal government shall thereafter increase
or decrease the amount of the federal generation skipping transfer tax actually
due, within 30 days of said after the increase or decrease, an
amended return shall be filed with the Secretary of Revenue reflecting all
changes made in the original return, and the amount of increase or decrease in
the federal generation skipping transfer tax. Based thereon, and upon
such evidence as he may otherwise acquire, the Secretary of Revenue shall
reassess the tax imposed herein, and if he shall determine that there remains
due additional tax, he shall thereafter issue a notice of proposed
assessment in respect thereof of the tax pursuant to G.S.
105-241.1. If the notice required herein of the federal change in tax due
is not so furnished, any additional tax which may be owing may be assessed at
any time.
(f) The administrative provisions of Article 1 and Article 6, wherever applicable, shall apply to the collection of the tax imposed by this section. To the extent that the same are not in conflict with the provisions of this section, the Secretary of Revenue may adopt such rules and regulations as are or may be promulgated with respect to the estate tax, gift tax, or generation skipping transfer tax provisions of the Code."
Sec. 2. This act is effective upon ratification and applies to decedents dying on or after the date of ratification.
In the General Assembly read three times and ratified this the 30th day of June, 1989.