GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                   D

HOUSE DRH90069-MC-147  (03/23)

Short Title:        Clarify Mill Machinery Privilege Tax.		(Public)
Sponsors:	Representative McComas.
Referred to:

A BILL TO BE ENTITLED

AN ACT to clarify that a port facility that utilizes specialized machinery to process bulk cargo into a form suitable for delivery and use by a manufacturing facility qualifies as a manufacturing facility for purposes of the privilege tax on mill machinery.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105-187.51(a) reads as rewritten:

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

(1)        A manufacturing industry or plant that purchases mill machinery or mill machinery parts or accessories for storage, use, or consumption in this State.State, including a port facility for waterborne commerce which, by use of specialized machinery, unloads or processes bulk cargo to make it suitable for delivery to and use by manufacturing facilities. A manufacturing industry or plant does not include the following:

a.         A delicatessen, cafe, cafeteria, restaurant, or another similar retailer that is principally engaged in the retail sale of foods prepared by it for consumption on or off its premises.

b.         A production company.

(2)        A contractor or subcontractor that purchases mill machinery or mill machinery parts or accessories for use in the performance of a contract with a manufacturing industry or plant.

(3)        A subcontractor that purchases mill machinery or mill machinery parts or accessories for use in the performance of a contract with a general contractor that has a contract with a manufacturing industry or plant."

SECTION 2.  This act is effective when it becomes law.