§ 105-32.7. Generation-skipping transfer tax. - North Carolina Statutes

§ 105‑32.7.  Generation‑skippingtransfer tax.

(a)        Tax. – A tax isimposed on a generation‑skipping transfer that is subject to the taximposed by Chapter 13 of Subtitle B of the Code when any of the followingapply:

(1)        The originaltransferor is a resident of this State at the date of the original transfer.

(2)        The originaltransferor is not a resident of this State at the date of the original transferand the transfer includes any of the following:

a.         Real or tangiblepersonal property that is located in this State.

b.         Intangible personalproperty that has a tax situs in this State.

(b)        Amount. – Theamount of the tax imposed by this section is the maximum credit for stategeneration‑skipping transfer taxes allowed under section 2604 of theCode. If property in the transfer is located in a state other than NorthCarolina, the amount of tax payable is the North Carolina percentage of thecredit.

If the original transferor wasa resident of this State at the date of the original transfer, the NorthCarolina percentage is the net value of the property transferred that does nothave a tax situs in another state, divided by the net value of all propertytransferred. If the original transferor was not a resident of this State at thedate of the original transfer, the North Carolina percentage is the net valueof real property that is located in North Carolina plus the net value of anypersonal property that has a tax situs in North Carolina, divided by the netvalue of all property transferred, unless the original transferor's state ofresidence uses a different formula to determine that state's percentage. Inthat circumstance, the North Carolina percentage is the amount determined bythe formula used by the original transferor's state of residence.

The net value of property thatis located in or has a tax situs in this State is its gross value reduced byany debt secured by that property. The net value of all the property in atransfer is its gross value reduced by any debts secured by the property.

(c)        Payment. – The taximposed by this section is due when a return is due. A return is due the samedate as the federal return for payment of the federal generation‑skippingtransfer tax. The tax is payable by the person who is liable for the federalgeneration‑skipping transfer tax. (1998‑212, s.29A.2(b).)