Tax Law Change Will Benefit Same-Sex Couples
7/16/2008 - Equality North Carolina applauds the repeal of the Gift Tax, which unfairly discriminates against same-sex couples. The tax was repealed by the state budget, which Governor Easley signed today. The Gift Tax, a tax paid by the recipient of gifts of real and personal property, exempts gifts between spouses from any tax, and gives certain relatives a lower rate. Same-sex couples, who are denied recognition under North Carolina law, are treated as legal strangers and taxed at the highest rate.
Photo by TW Collins
While most public discussion of the Gift Tax has focused on the very rich, it can have a real impact on many same-sex couples. For example, if a person owns a home and adds his or her partner to the title, the partner giving the interest in the home could be subject to thousands of dollars in taxes under the existing Gift Tax law. If they were giving the intrest in the home to a legal spouse they would owe no tax on the transaction.
The repeal of the Gift Tax will eliminate this disparity, although same-sex couples will continue to face unequal tax treatment in other areas as long as the state denies them access to marriage.
The repeal will take effect for the 2009 tax year and will still apply to gifts made in 2008. The Federal Gift Tax also remains in effect.
Equality Lobby Day 2009
