North Carolina: Machinery and Equipment Privilege Tax for Qualifying Data Centers Expires, July 2015
- Jul 9, 2015 | Gail Cole
North Carolina law imposes a privilege tax on certain machinery and equipment that is purchased by a qualifying datacenter. On July 1, 2015, that privilege tax expired.
According to an important notice issued by the North Carolina Department of Revenue, “Effective July 1, 2015 purchases or sales of datacenter machinery and equipment by or to an owner of a datacenter, or a contractor of an owner of a datacenter, are subject to the general 4.75% State and applicable local and transit rates of sales and use tax.”
Please note that lawmakers are currently considering legislation that would re-enact or retroactively extend the privilege tax. Other tax benefits are also being considered.
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