The North Carolina Office of State Budget and Management released Governor Roy Cooper’s proposed budget adjustments.  Included in these proposed adjustments are changes to certain sales and use tax provisions.

Specifically, the proposal calls for the maintenance of the repealed mill machinery privilege tax and the sales tax exemption for order fulfillment centers. As a result, taxpayers are projected to save $68 million in fiscal year 2018-19.  Additionally, the proposal recommends the creation of a rebate for large entertainment productions that’s capped at $15 million per television series and $5 million per film. By focusing on high-end television series, Governor Cooper hopes to support more stable employment for the Tar Heel state’s production workers while also creating a longer-term economic impact.  Furthermore, the usage of a rebate program rather than a grant provides studios, in the state, with needed certainty to film television series.

To register to collect and remit North Carolina sales and use tax, you will need to complete and mail in the application or complete the Online Business Registration. Alternatively, if you qualify for a sales tax exemption and remitted tax, you may apply for a tax refund with the North Carolina Department of Revenue, by completing the NC-19 Claim for Refund of Taxes Form. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is an executive council member of the American Bar Association Tax Section State and Local Tax Committee and the Florida Bar Tax Section. Ms. Moffa is an author of both the CCH’s Expert Treatise Library: Sales and Use Tax as well the ABA’s Sales and Use Tax Deskbook. In addition, her regular columns on state and local tax issues can be found in State Tax Notes and Actionline, a publication from the Florida Bar’s Real Property, Probate, and Trust Law Section. She also serves as assistant editor to the Sales and Use Tax Deskbook and Actionline. Ms. Moffa is a regular speaker at the American Bar Association Tax Section conferences, the Institute of Professionals in Taxation, the Florida Bar Tax Section, the Florida Bar Real Property, Probate, and Trust Law Section, and the FICPA. In her free time, she teaches as an adjunct professor at Broward College.

Posted in Multi-state sales and use tax, North Carolina Sales Tax