Senate Bill 557 Summary

• Increases standard deduction amounts for North Carolina income tax effective January 1, 2020: married filing jointly to $21,500, head of household to $16,125, single to $10,750, and married filing separately to $10,750.

• Implements market-based sourcing for multistate income tax apportionment starting January 1, 2020, replacing prior sourcing rules with receipts-based methods and special provisions for wholesale content distributors and banks.

• Requires marketplace facilitators making over $100,000 in sales or 200+ transactions sourced to North Carolina to collect and remit sales tax on all marketplace-facilitated sales effective February 1, 2020.

• Expands holding company definition for franchise tax purposes to include corporations owning copyrights, patents, or trademarks representing 80%+ of assets if owned by manufacturers with $5 billion+ in revenues.

• Adds study requirement for Revenue Laws Study Committee to review any tax provision set to sunset within one year of the next regular session to determine if extension is needed.