NC H81

Expands the 1% privilege tax rate (capped at $80 per article) to include machinery and equipment purchased by companies engaged in metal fabrication with annual gross receipts of at least $8 million from metal fabrication work.

Requires the equipment to be capitalized for tax purposes under the Internal Revenue Code and used in the fabrication or manufacture of metal products or in creating equipment for such fabrication.

Effective January 1, 2016, and applies to purchases made on or after that date.

Directs the Revenue Laws Study Committee to study the scope and application of the 1%/$80 privilege tax on mill machinery and similar equipment across industries, including examination of tax treatment in other states and whether the rate should be modified or eliminated.

Committee may report findings and recommended legislation to the 2016 Regular Session of the General Assembly.