Bill > S62

This bill expands sales tax exemptions for certain nonprofit entities in North Carolina, creating a comprehensive framework for tax-exempt status. Specifically, the bill provides sales tax exemptions for various nonprofit organizations, including non-profit hospitals, organizations exempt from federal income tax under section 501(c)(3), volunteer fire departments and emergency medical services, certain single-member nonprofit LLCs, qualified retirement facilities, and university-affiliated nonprofit organizations. The exemption covers tangible personal property, digital property, and services used in carrying out the organization's work, with some notable exceptions like electricity and telecommunications services. The bill establishes a process for nonprofits to obtain a sales tax exemption number from the state Department of Revenue, requiring an application with specific details. Additionally, the legislation introduces a new provision exempting fundraising events held by nonprofit entities from entertainment admission taxes, even if the event includes ancillary entertainment. There are limits on the annual exemption amount, with a maximum of $31.7 million in tax exemptions per fiscal year, and the bill includes provisions for penalties if exemption certificates are misused. The bill's provisions will become effective in stages, with most sections taking effect on October 1, 2025, and the fundraising event exemption effective July 1, 2025.

https://www.ncleg.gov/BillLookUp/2025/S62