2010 North Carolina Code
Chapter 105 Taxation.
Article 1A - Estate Taxes.
105-32.7. Generation-skipping transfer tax.

105‑32.7. Generation‑skipping transfer tax.

(a) Tax. A tax is imposed on a generation‑skipping transfer that is subject to the tax imposed by Chapter 13 of Subtitle B of the Code when any of the following apply:

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

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

a. Real or tangible personal property that is located in this State.

b. Intangible personal property that has a tax situs in this State.

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

If the original transferor was a resident of this State at the date of the original transfer, the North Carolina percentage is the net value of the property transferred that does not have a tax situs in another state, divided by the net value of all property transferred. If the original transferor was not a resident of this State at the date of the original transfer, the North Carolina percentage is the net value of real property that is located in North Carolina plus the net value of any personal property that has a tax situs in North Carolina, divided by the net value of all property transferred, unless the original transferor's state of residence uses a different formula to determine that state's percentage. In that circumstance, the North Carolina percentage is the amount determined by the formula used by the original transferor's state of residence.

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

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