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NC Justices Reject Residency As Grounds To Tax Trust Income

By Paul Williams · June 12, 2018, 8:05 PM EDT

The North Carolina Supreme Court has ruled the state Department of Revenue unconstitutionally collected more than $1.3 million in taxes from an out-of-state trust, saying that basing the tax on the beneficiary’s residence violated the due process requirements of the Fourteenth Amendment and the state Constitution.

In a 6-1 decision Friday, the justices said income from the Kimberley Rice Kaestner 1992 Family Trust, which was based in New York, was not subject to state taxation for tax years 2005 through 2008 because the beneficiary, Kimberley Rice...

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