GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2013

H                                                                                                                                                    1

HOUSE BILL 959

Short Title:        Expand 1%/$80 Rate for Mill Machinery.		(Public)
Sponsors:	Representatives Malone, Lewis, Starnes, and Collins (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site.
Referred to:	Finance.

April 18, 2013

A BILL TO BE ENTITLED

AN ACT to clarify that mill machinery is to be taxed according to the preponderance of the use of the machinery.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105-187.51B(a) is amended by adding a new subdivision to read:

"(a)       Tax. - A privilege tax is imposed on the following:

…

(6) A company engaged in fabrication of metal work that is included in industry group 332312, 332313, or 332322 and that purchases equipment or an attachment or repair part for equipment that meets all of the following requirements:

a. Is capitalized by the company for tax purposes under the Code.

b. Is used by the company in the fabrication of metal products or used by the company to create equipment for the fabrication of metal products.

(b)        Rate. - The tax is one percent (1%) of the sales price of the equipment or other tangible personal property. The maximum tax is eighty dollars ($80.00) per article."

SECTION 2.  This act becomes effective July 1, 2013.