NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 1122

SENATE BILL 803

AN ACT TO AMEND G.S. 105-203 WITH RESPECT TO SHARES OF STOCK.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 105-203 is hereby rewritten as follows:

"G.S. 105-203.  Shares of stock. All shares of stock owned by residents of this State or having a business, commercial or taxable situs in this State on December 31 of each year, with the exception herein provided, shall be subject to an annual tax, which is hereby levied, of twenty-five cents (25¢) on every one hundred dollars ($100.00) of the total fair market value of such stock on December 31 of each year less such proportion of such value as is equal to the proportion of the dividends upon such stock deductible by such taxpayer in computing his income tax liability under the provisions of G.S. 105-130.7 and 105-147(7).

The tax herein levied shall not apply to shares of stock in building and loan associations which pay a tax as levied under Article 8D of Chapter 105 of the General Statutes, nor to shares of stock owned by any corporation which has its commercial domicile in North Carolina, where such corporation owns more than fifty percent (50%) of the outstanding voting stock.

Indebtedness incurred directly for the purchase of shares of stock may be deducted from the total value of such shares; provided, the specific shares of stock so purchased are pledged as collateral to secure said indebtedness; provided further, that only so much of said indebtedness may be deducted as is in the same proportion as the taxable value of said shares of stock is to the total value of said shares of stock."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be effective for all taxable years beginning on and after January 1, 1969.

In the General Assembly read three times and ratified, this the 30th day of June, 1969.