NC H227

Lowers the income threshold for qualifying farmers from $10,000 to $5,000 annual gross income for purposes of the sales tax exemption for farmers.

Applies the reduced threshold to either the preceding single taxable year or an average of the three preceding taxable years of income from farming operations.

Maintains the definition of qualifying farmers to include dairy operators, poultry farmers, egg producers, livestock farmers, crop farmers, and aquatic species farmers.

Exemption certificate continues to expire when a person fails to meet the income threshold for three consecutive taxable years or ceases farming operations.

Effective July 1, 2015, for exemption certificates issued on or after that date.