North Carolina SB 1737: Tax on Lottery Winnings/Comm. Coll. Equip.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S 1
SENATE BILL 1737*

Short Title: Tax on Lottery Winnings/Comm. Coll. Equip. (Public)
Sponsors: Senator Dalton.
Referred to: Finance.
May 23, 2006

A BILL TO BE ENTITLED 1
AN ACT EARMARKING THE TAX COLLECTED ON LOTTERY WINNINGS FOR 2
COMMUNITY COLLEGE EQUIPMENT. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 105-163.2B reads as rewritten: 5
"§ 105-163.2B. North Carolina State Lottery Commission must withhold taxes. 6
The North Carolina State Lottery Commission, established by Chapter 18C of the 7
General Statutes, must deduct and withhold State income taxes from the payment of 8
winnings that are reportable to the Internal Revenue Service under section 3406 of the 9
Code. The amount of taxes to be withheld is seven percent (7%) of the winnings. The 10
Commission must file a return and pay the withheld taxes in the time and manner 11
required under G.S. 105-163.6 as if the winnings were wages. The taxes the 12
Commission withholds are held in trust for the Secretary. 13
The Secretary of Revenue shall transfer these funds at the end of each quarter to the 14
State Board of Community Colleges' Equipment Reserve Fund. The State Board of 15
Community Colleges shall distribute these funds annually to the community colleges in 16
accordance with G.S. 115D-31." 17
SECTION 2. This act becomes effective July 1, 2006, and applies to 18
winnings paid on or after that date. 19