NC H991

Exempts tangible personal property from retail sales and use tax if it is a leasehold improvement or new equipment used by a small business with gross annual sales of no more than $2,000,000.

Requires the property to be capitalized for tax purposes and have a minimum value of $50,000 to qualify for the sales tax exemption.

Excludes passenger automobiles exceeding $100,000, automobiles not used primarily for business, and entertainment watercraft from the exemption.

Provides a 15% property tax deduction on the appraised value of tangible personal property exempt under the sales tax provision, if the property value is at least $100,000.

Sales tax exemption becomes effective July 1, 2016 for sales made on or after that date; property tax exclusion applies to taxable years beginning on or after July 1, 2016.