NC S614

Requires buyers of residential real property to withhold taxes from nonresident sellers, with the withholding amount equal to the lesser of net proceeds or the seller's recognized gain multiplied by the state income tax rate.

Exempts nonresident sellers who have filed at least one state income tax return, are current on filing requirements, have been in continuous business in North Carolina for the last two years, and are registered to do business in the state.

Establishes that withholding applies to sales of residential real property alone or combined with tangible personal property, but excludes tax-exempt transactions, principal residence sales, and other transactions deemed by the Department to have insufficient state benefit.

Requires buyers or closing attorneys to remit withheld amounts to the Department by the 15th of the month following the sale, and mandates closing attorneys report seller information, property location, closing date, and sale price to the Department.

Allows nonresident sellers to request refunds for excess withholding by submitting documentation of computational errors or overpayment to the Department; becomes effective July 1, 2017.