Bill > H882

This bill provides a sales tax exemption for certain nonprofit entities in North Carolina. The key provisions are: 1. Repeals the existing sales tax exemption for nonprofit entities under G.S. 105-164.14(b) and creates a new, broader exemption under G.S. 105-164.13(52a). The new exemption applies to tangible personal property, digital property, and services used by hospitals not for profit, organizations exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (with some exceptions), volunteer fire departments and emergency medical services, certain single-member LLCs, qualified retirement facilities, and university-affiliated nonprofit organizations. 2. Requires nonprofit entities to obtain a sales tax exemption number from the Department of Revenue to be eligible for the exemption. 3. Applies the state sales tax exemptions and exclusions, as well as the state refund provisions, to the local sales and use tax, with a $13.3 million annual aggregate local exemption limit. 4. Imposes a $250 penalty for misuse of the nonprofit entity sales tax exemption certificate. The bill takes effect October 1, 2023 and applies to sales and purchases made on or after that date.