House Bill 228 Summary

• Repeals provisions in individual income tax law and updates definitions of income attributable and not attributable to the State for partnerships and S Corporations, effective for taxable years beginning January 1, 2023.

• Changes joint income tax return filing requirements for married couples to use gender-neutral language and clarifies rules when only one spouse is required to file, while also modernizing language regarding filing extensions and return procedures.

• Modifies remote sales tax thresholds effective July 1, 2024, by replacing a transaction-based threshold with a combined gross sales or transaction threshold, and updates the Streamlined Sales and Use Tax Agreement reference to November 7, 2023.

• Makes technical corrections to Medicaid hospital assessment statutes including updating Consumer Price Index definitions, revising hospital historical assessment shares to 80.17% and 19.83%, and adding rural emergency hospitals to assessment calculations.

• Increases the NC Housing Finance Agency's bond debt limit from $3 billion to $12 billion and updates high-cost home loan discount point thresholds to reference federal Consumer Financial Protection Bureau average prime offer rates effective June 1, 2024.