North Carolina SB 1340: Reduce Sales Tax.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S 1

SENATE BILL 1340

Short Title: Reduce Sales Tax. (Public)

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Sponsors: Senators McDaniel; Ballantine, Page, Clark, Carrington, Foxx, Kincaid,
McKoy, Ledbetter, Horton, Blust, Blackmon, Smith, East, Allran, Hartsell, Carpenter,
Little, Webster, Forrester, Davis, and Simpson.

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Referred to: Finance.

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May 27, 1996

A BILL TO BE ENTITLED 1
AN ACT TO REPEAL THE INCREASE IN THE SALES TAX ENACTED IN 1991. 2
The General Assembly of North Carolina enacts: 3
Section 1. G.S. 105-164.4(a) reads as rewritten: 4
"(a) A privilege tax is imposed on a retailer at the following percentage rates of the 5
retailer's net taxable sales or gross receipts, as appropriate. The general rate of tax is four 6
percent (4%). three percent (3%). 7
(1) The general rate of tax applies to the sales price of each item or article 8
of tangible personal property that is sold at retail and is not subject to 9
tax under another subdivision in this section. 10
(1a) The rate of two percent (2%) applies to the sales price of each 11
manufactured home sold at retail, including all accessories attached to 12
the manufactured home when it is delivered to the purchaser. The 13
maximum tax is three hundred dollars ($300.00) per article. Each 14
section of a manufactured home that is transported separately to the site 15
where it is to be erected is a separate article. 16
(1b) The rate of three percent (3%) two percent (2%) applies to the sales price 17
of each aircraft, boat, railway car, or locomotive sold at retail, including 18

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all accessories attached to the item when it is delivered to the purchaser. 1
The maximum tax is one thousand five hundred dollars ($1,500) per 2
article. 3
(1c) The rate of one percent (1%) applies to the sales price of the following 4
articles: 5
a. Horses or mules by whomsoever sold. 6
b. Semen to be used in the artificial insemination of animals. 7
c. Sales of fuel, other than electricity or piped natural gas, to 8
farmers to be used by them for any farm purposes other than 9
preparing food, heating dwellings and other household purposes. 10
The quantity of fuel purchased or used at any one time shall not 11
in any manner be a determinative factor as to whether any sale or 12
use of fuel is or is not subject to the one percent (1%) rate of tax 13
imposed herein. 14
d. Sales of fuel, other than electricity or piped natural gas, to 15
manufacturing industries and manufacturing plants for use in 16
connection with the operation of such industries and plants other 17
than sales of fuels to be used for residential heating purposes. 18
The quantity of fuel purchased or used at any one time shall not 19
in any manner be a determinative factor as to whether any sale or 20
use of fuel is or is not subject to the rate of tax provided in this 21
subdivision. 22
e. Sales of fuel, other than electricity or piped natural gas, to 23
commercial laundries or to pressing and dry-cleaning 24
establishments for use in machinery used in the direct 25
performance of the laundering or the pressing and cleaning 26
service. 27
f. Sales to freezer locker plants of wrapping paper, cartons and 28
supplies consumed directly in the operation of such plant. 29
(1d) The rate of one percent (1%) applies to the sales price of the following 30
articles. The maximum tax is eighty dollars ($80.00) per article. 31
a. Sales to a farmer of machines and machinery, and parts and 32
accessories for these machines and machinery, for use by the 33
farmer in the planting, cultivating, harvesting, or curing of farm 34
crops or in the production of dairy products, eggs, or animals. A 35
'farmer' includes a dairy operator, a poultry farmer, an egg 36
producer, a livestock farmer, a farmer of crops, and a farmer of 37
an aquatic species, as defined in G.S. 106-758. Items that are 38
exempt from tax under G.S. 105-164.13(4c) are not subject to tax 39
under this section. 40
The term 'machines and machinery' as used in this 41
subdivision is defined as follows: 42

GENERAL ASSEMBLY OF NORTH CAROLINA 1995
SENATE BILL 1340 version 1 Page 3
The term shall include all vehicular implements, designed and 1
sold for any use defined in this subdivision, which are operated, 2
drawn or propelled by motor or animal power, but shall not 3
include vehicular implements which are operated wholly by 4
hand, and shall not include any motor vehicles required to be 5
registered under Chapter 20 of the General Statutes. 6
The term shall include all nonvehicular implements and 7
mechanical devices designed and sold for any use defined in this 8
subdivision, which have moving parts, or which require the use 9
of any motor or animal power, fuel, or electricity in their 10
operation but shall not include nonvehicular implements which 11
have no moving par