North Carolina sales tax updates, July 2016
- Aug 8, 2016 | Gail Cole
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:
- Certain purchases used at a ports facility
- Certain purchases by precious metal extraction companies
- Certain purchases by metal work fabrication companies
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.