North Carolina: Please Pass the (Day-Old) Buns
- Jun 19, 2014 | Gail Cole
The rate of sales tax for bread, buns and rolls sold at bakery thrift stores in North Carolina is about to increase. These items are currently subject to the reduced 2.00% food tax rate. Effective July 1, 2014, they will be subject to the general North Carolina state sales tax rate of 4.75%, plus any applicable local taxes.
Bakery thrift store is defined by North Carolina law as “a retail outlet of a bakery that sells at wholesale over ninety percent (90%) of the items it makes and sells at the retail outlet day-old bread, rolls, and buns returned to it by retailers that acquired these items from the bakery.”
Taking all applicable state and local sales taxes into account, the combined sales tax rate for bread, buns and rolls sold at bakery thrift stores is as follows:
- 7.50% in Durham and Orange Counties;
- 7.25% in Mecklenburg County;
- 7.00% in Alexander, Buncombe, Cabarrus, Catawba, Cumberland, Duplin, Edgecombe, Greene, Halifax, Haywood, Harnett, Hertford, Lee, Martin, Montgomery, New Hanover, Onslow, Pitt, Randolph, Robeson, Rowan, Sampson, Surry and Wilkes Counties; and
- 6.75% in the 73 remaining counties.
Read the North Carolina Department of Revenue important notice on the subject for additional information.