subchapter 07B - 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.