Bill > H884

This bill modifies the North Carolina sales tax exemption for artisanal bakeries by increasing the annual gross receipts threshold from $1.8 million to $2.4 million. The exemption applies to bakeries that derive over 80% of their gross receipts from bakery items (defined as bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas) and whose total annual gross receipts, including those of related persons, do not exceed the new threshold. The term "related persons" is defined by referencing specific sections of the tax code that describe familial and business relationships. The bill will become effective on October 1, 2025, and will apply to sales made on or after that date, allowing artisanal bakeries with slightly higher annual revenues to continue to be exempt from sales tax on their bakery items.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/H884