North Carolina – Artisan Bakery Exemption Clarified

SALT Report 3476 – Artisan bakery items sold with eating utensils are subject to the 4.75% general state tax, while artisan bakery items sold without eating utensils are only subject to the 2% local tax rate.

Eating utensils include:

  • Plates
  • Knives
  • Forks
  • Spoons
  • Glasses
  • Cups
  • Napkins
  • Straws

“An “artisan bakery” is a bakery that meets all of the following requirements:

  1. It derives over eighty percent (80%) of its gross receipts from the sale of bakery items.
  1. Its annual gross receipts, combined with the gross receipts of all related persons as defined in [Section 267(b) or 707(b) of the Internal Revenue Code], do not exceed one million eight hundred thousand dollars ($1,800,000).”

For Further Information:

NC Important Notice Artisan Bakery