subchapter 07D - Manufacturing Fuel and Certain Machinery and Equipment Privilege Tax

 

SECTION .0100 ‑ GENERAL APPLICATION OF PRIVILEGE TAX TO MANUFACTURING AND INDUSTRIAL PROCESSING

 

17 NCAC 07D .0101          PRIVILEGE TAX ON MANUFACTURING AND PROCESSING MACHINERY

(a)  Streamlined Sales Tax Agreement Certificates of Exemption, Form E-595E, are available from the Taxpayer Assistance Division, North Carolina Department of Revenue, for use in connection with sales of manufacturing fuel and mill machinery, mill machinery parts and accessories as the vendor's authority to exempt such sales from sales and use tax.  Purchases of manufacturing fuel and mill machinery, mill machinery parts, and accessories are subject to a privilege tax.  The rate for manufacturing fuel is one percent.  The rate for mill machinery, mill machinery parts, and accessories is one percent with a maximum tax of eighty dollars ($80.00) per article.

(b)  Sales to contractors and subcontractors purchasing mill machinery or mill machinery parts and accessories for use by them in the performance of contracts with manufacturing industries and plants and sales to subcontractors purchasing mill machinery or mill machinery parts and accessories for use by them in the performance of contracts encompassed in such contracts with manufacturing industries and plants are exempt from sales and use tax where applicable.  Such mill machinery or mill machinery parts and accessories must be for use by a manufacturing industry or plant in the production process, as the term "production" is defined in 17 NCAC 07D .0102(a)(1), to qualify for the exemption from sales and use tax when purchased by such contractors or subcontractors.  Contractors and subcontractors may obtain Form E-595E, Streamlined Sales Tax Agreement Certificate of Exemption, from the Taxpayer Assistance Division, North Carolina Department of Revenue, to be executed by them and furnished to their vendors in connection with such purchases as the vendor's authority to exempt such sales from the sales and use tax.  Such purchases of mill machinery, mill machinery parts, and accessories are subject to a one percent privilege tax with a maximum tax of eighty dollars ($80.00) per article. The purchaser must file Form E-500J, Machinery, Equipment, and Fuel Tax Return, and pay the tax directly to the Department.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑187.51; 105‑187.52; 105‑262; 105‑264;

Eff. July 1, 2006.