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North Carolina: Please Pass the (Day-Old) Buns

  • Jun 19, 2014 | Gail Cole

 North Carolina: What rate of sales tax applies to the bread you buy?

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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.