From the North Carolina Department of Revenue website at:
http://www.dornc.com/taxes/individual/military.html
"Under the Servicemembers Civil Relief Act, if you are a legal resident of another state who is stationed in North Carolina on military orders, you will not be taxed on your military pay by North Carolina. However, if you receive income from non-military employment, tangible property or a business located in North Carolina, you must pay the North Carolina tax on that income."
