17 NCAC 06C .0110. COMMON CARRIERS

(a)  The Amtrak Reauthorization and Improvement Act of 1990 provides that no part of the compensation paid to an employee of an interstate railroad subject to the jurisdiction of the Federal Surface Transportation Board may be subject to income tax, or income tax withholding, in any state except the state of the employee's residence when  the employee performs regularly assigned duties in more than one state.  The Act also precludes the taxation of compensation paid by an interstate motor carrier to an employee performing services in two or more states except by the state of the employee's residence.  Therefore, the compensation received by these nonresident employees for services performed in this State is not subject to North Carolina income tax or income tax withholding.

(b)  Under the Federal Aviation Act (49 USCS‑1512), a nonresident airline employee rendering services on an aircraft is not liable for North Carolina income tax unless the employee's scheduled flight time in North Carolina is more than 50 percent of the employee's total scheduled flight time during the calendar year.  If the employee's flight logs show that more than 50 percent of the scheduled flight time is in North Carolina, the amount of income reportable to this State shall be based on the percentage that the North Carolina flight time is to the total flight time for the year.

 

History Note:        Authority G.S. 105‑163.2; 105‑262; 49 U.S.C. Sec. 26; Sec. 301A; Sec. 923; Sec. 1512;

Eff. February 1, 1976;

Amended Eff. July 1, 1999; November 1, 1994; December 1, 1990; November 1, 1988.