House Bill 83 Summary

• Makes technical and clarifying changes to North Carolina revenue laws across business tax, personal income tax, sales tax, excise tax, and administrative provisions as recommended by the Department of Revenue.

• Modifies corporate net worth calculations for franchise tax purposes, including a new provision that foreign entities' net worth is based on U.S. assets only, effective for taxable years beginning January 1, 2023.

• Adjusts interest expense deductions for related-party debt and defines "qualified interest expense" limitations, while revising net loss carryforward provisions for mergers and acquisitions.

• Updates sales tax definitions to reference the Streamlined Sales and Use Tax Agreement as amended December 21, 2021, and clarifies the definition of "state" to include U.S. territories.

• Modifies tax administration provisions including penalty assessments for late filing (up to $1,000 per return), changes to the failure-to-pay penalty structure (5% initially effective January 1, 2023, transitioning to graduated 2-10% by July 1, 2024), and refund statute of limitations clarifications.