Bill > H755

This bill expands and clarifies sales tax exemptions for certain nonprofit entities in North Carolina, creating a comprehensive framework for tax-exempt purchases. The legislation allows sales tax exemptions for specific types of nonprofit organizations, including non-profit hospitals, certain 501(c)(3) organizations (with some exclusions based on the National Taxonomy of Exempt Entities), volunteer fire departments and emergency medical services, single-member nonprofit LLCs, qualified retirement facilities, university-affiliated nonprofit organizations, and hospitals purchasing over-the-counter drugs. The bill establishes a new process for obtaining a sales tax exemption number from the Department of Revenue, requiring nonprofits to apply and potentially face liability if they misuse the exemption. The exemption covers both direct and indirect purchases, such as materials bought by contractors for nonprofit-owned buildings, with an annual aggregate exemption limit of $31.7 million. The bill also specifies certain purchases that remain taxable, such as electricity and telecommunications services. The new provisions will become effective on October 1, 2025, and apply to sales and purchases made on or after that date, ensuring a clear implementation timeline for nonprofit organizations and retailers.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H755