June 22, 1992
TO: TAX MEMBERS NO. 39-92
MEMBERS - ONE PER COMPLEX NO. 19-92
RE: STOCK BROKER PRIVILEGE LICENSE TAX BILL INTRODUCED IN NORTH
CAROLINA SENATE
__________________________________________________________
The attached bill, which has been introduced in the North
Carolina Senate, would impose a $50 privilege tax on all persons
registered in North Carolina as either a securities dealer or
securities salesman. It is our understanding that, as presently
drafted, the bill could be interpreted to apply to out-of-state
telephone sales representatives at no-load fund complexes who are
registered as securities salesmen.
Currently, the privilege license tax on securities dealers
is applied at a rate of either $200 or $450 on a per-office
basis. Thus, the same tax is paid regardless of the number of
registered securities dealers or securities salesmen in an
office. The bill would conform the treatment of securities
dealers and salesmen with the treatment of all other
professionals subject to the privilege license tax. North
Carolina counsel for the Institute is currently working to have
the tax made inapplicable to persons who neither reside nor work
in North Carolina.
We will keep you informed of developments.
David J. Mangefrida Jr.
Assistant Counsel - Tax
Attachment