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North Carolina: Special Rates for Electricity and Natural Gas to Expire, July 2015


 North Carolina: Special rates of tax for electricity and piped natural gas will expire July 2015.

North Carolina levies the combined general rate of sales tax to the gross receipts derived from sales of electricity and piped natural gas. However, between July 1, 2014, and July 1, 2015, the rate of 3.5% applies in certain situations.

Effective July 1, 2015, the following rates will expire:

  • (14)    “ … the rate of three and one-half percent (3.5%) applies to the gross receipts derived from sales of piped natural gas (i) received by a gas city for consumption by that city and (ii) delivered by a gas city to a sales customer or transportation customer of the gas city. For purposes of this subdivision, the following definitions apply:
    • Gas city. - A city in this State that operated a piped natural gas distribution system as of July 1, 1998. These cities are Bessemer City, Greenville, Kings Mountain, Lexington, Monroe, Rocky Mount, Shelby, and Wilson.
    • Sales customer. - An end user who does not have direct access to an interstate gas pipeline and whose piped natural gas is delivered by the seller of the gas.
    • Transportation customer. - An end user who does not have direct access to an interstate gas pipeline and whose piped natural gas is delivered by a person who is not the seller of the gas.
  • (14a)   the rate of three and one-half percent (3.5%) applies to the gross receipts derived from sales of electricity by Cape Hatteras Electric Membership Corporation.” (North Carolina Statute 105-164.4(14)(14a))

The North Carolina Department of Revenue provides additional information about the above changes here.

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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.