17 NCAC 07D .0202          ITEMS NOT MILL MACHINERY

The following items are not considered mill machinery or mill machinery parts and accessories to manufacturing industries and plants and are therefore subject to the applicable statutory state and local sales or use tax:

(1)           tangible personal property attached to or in any way a part of any building or structure of any kind whatsoever; freight elevators; plumbing and sprinkler systems; electric wiring and electric fixtures; electric lamps and tubes; and fuses and fuse links.  Electrical equipment, including control panels, or wiring and related conduit affixed to mill machinery to furnish power to mill machinery and equipment, is classified as an accessory to such machinery and is therefore subject to the one percent privilege tax with a maximum tax of eighty dollars ($80.00) per article. However, electrical equipment or wiring and related conduit which is used for general distribution of power to or in a manufacturing industry or plant is subject to the applicable statutory state and local sales or use tax;

(2)           that part of the purchase price of a general air conditioning or humidifying system charged to general building heating or cooling or to moistening of air for the comfort and convenience of employees;

(3)           ventilating fans in walls or roofs of buildings and portable or stand type fans for plant ventilation; make‑up air systems used for the purpose of ventilating manufacturing industries and plants. However, exhaust fans or hoods that are a part of mill machinery and which remove fumes, vapors or dust arising from the manufacturing operation which would damage the product in process or the mill machinery unless removed from the area would be classified as mill machinery or mill machinery parts and accessories and subject to the one percent privilege tax;

(4)           all scales not used in the manufacturing process;

(5)           time clocks and cards, and all signal systems operated therewith; watch clocks and watch clock stations; and all parts and supplies therefore;

(6)           protective clothing, such as gloves, safety shoes and similar items, regardless of whether they are purchased and paid for by the employer or the employee;

(7)           machinery and equipment used in warehouses, shipping rooms or other locations separate and apart from the manufacturing process to prepare property for shipment.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105-187.51; 105-187.52; 105‑262; Articles 39, 40, 42, 43, 44;

Eff. July 1, 2006.