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North Carolina: Machinery and Equipment Privilege Tax for Qualifying Data Centers Expires, July 2015


 North Carolina's privilege tax for certain data centers.

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.

For additional information, please see the important notice and N.C. Gen. Stat. § 105-187.51C.

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photo credit: Jeremy Brooks via photopin cc


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.