Avalara Taxrates > Blog > Sales Tax News > North Carolina sales tax updates, July 2016 - Avalara

North Carolina sales tax updates, July 2016

  • Aug 8, 2016 | Gail Cole

 Certain food packaging items are now exempt from North Carolina sales tax.

Governor Pat McCrory (R) of North Carolina has been busy of late, and not just dealing with national outrage over the state’s law requiring people in government facilities to use the bathroom associated with the gender on their birth certificates. He’s been signing all sorts of legislation into law, some of which involves sales and use tax.

Packaging for prepared food sold under prepaid meal plans

Prepaid meal plans sold to college students at institutions of higher learning became subject to North Carolina sales and use tax on July 1, 2014. Now, Session Laws 2016-92 (Senate Bill 803) clarifies that there is an exemption for items used to package the food and prepared food sold under a prepaid meal plan to college students. It reads:

“This exemption applies to packaging items including wrapping paper, labels, plastic bags, cartons, packages and containers, paper cups, napkins and drinking straws, and like articles that meet all of the following requirements:

  • Used for packaging, shipment, or delivery of food and prepared food
  • Constitute a part of the sale of the food and prepared food
  • Delivered with the food and prepared food”

Additional information is available through the North Carolina Department of Revenue (DORNC).

Boats and planes

There is a use tax exemption for certain goods and services related to repair, maintenance and installation charges with respect to certain aircraft, boats and qualified jet engines. Learn more.

A tax on certain privileges

Retroactively effective July 1, 2016, North Carolina privilege tax has been expanded to the following:

These purchases are therefore no longer subject to North Carolina sales and use tax as of July 1, 2016. Follow the links above for additional information issued by DORNC, or see HB 1030 for more details.

It’s challenging to keep up with sales and use tax changes, no matter how hard you try. Sales tax automation makes it manageable. Learn how it works.

photo credit: BRITISH COLUMBIA 1971 MUNICIPAL EXEMPT plate via photopin (license)

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.