§ 105-131.1. Taxation of an S Corporation and its shareholders.
§105‑131.1. Taxation of an S Corporation and its shareholders.
(a) An S Corporationshall not be subject to the tax levied under G.S. 105‑130.3.
(b) Each shareholder'spro rata share of an S Corporation's income attributable to the State and eachresident shareholder's pro rata share of income not attributable to the State,shall be taken into account by the shareholder in the manner and subject to theadjustments provided in Parts 2 and 3 of this Article and section 1366 of theCode and shall be subject to the tax levied under Parts 2 and 3 of thisArticle. (1987 (Reg. Sess., 1988), c. 1089, s. 1; 1989, c. 728,ss. 1.33, 1.35; 1998‑98, ss. 5, 68.)