By Keiter CPAs
Beginning July 1, 2018, North Carolina’s one percent (1%) privilege tax will no longer apply to sales and purchases of qualifying mill machinery, mill machinery parts or accessories, and other qualifying items for specific industries. Examples of equipment no longer subject to the tax include: (i) mill machinery or mill machinery parts and accessories by manufacturing industries and plants and contractors and subcontractors for use in the performance of a contract with a manufacturing industry or plant (ii) manufacturing fuel by manufacturing industries and plants, and (iii) recycling equipment by a major recycling facility. The maximum tax has been $80.00 per article.
It is noteworthy that such machinery, parts, etc., are not subject to North Carolina’s retail sales and use tax, provided they meet the exemption criteria.
Questions on the changes facing North Carolina retail sales and use taxes? We can help. Contact a member of the State and Local Tax team or Email | 804.747.0000
Additional State and Local Tax Resources:
Effective Soon: Virginia Sales Tax Exemptions for Aircraft
“Supreme Court’s Wayfair Case Will Impact Virginia Businesses”
State Efforts to Collect Sales Use Tax
State and Local Tax Obligations of Emerging Businesses
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Keiter CPAs
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More Insights from Keiter CPAsThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
