North Carolina – Amended Exemption and Refund Provisions

SALT Report 2800 – On July 26, 2013 North Carolina Governor Pat McCrory signed the Appropriations Act of 2013, which includes amendments to the following sales and use tax provisions:

Interstate Passenger Air Carrier Refund

The state portion of the sales and use tax refund available for purchases of fuel by interstate passenger air carriers that is in excess of $1,250,000 will be paid in two installments. The first installment will be paid in fiscal year 2012-2013 and may not exceed $3,150,000.  Any remaining refund due will be paid in fiscal year 2013-2014. The refund applies to purchases from January 1, 2011, through June 30, 2011.

Telecommunications Services Exemption

The sales and use tax exemption for certain telecommunications services and charges was amended to reflect that telecommunications service purchased or provided by a state agency, or a unit of local government for the State Network, or another data network owned or leased by the state or unit of local government are exempt.  Previously, the exemption only applied to purchases of telecommunications services.

The provisions in Senate Bill 402 were effective July 1, 2013.

For Further Information

North Carolina General Assembly – Senate Bill 402, Laws 2013