NC H847

Repeals Article 5F of Chapter 105 of the General Statutes (the one-percent privilege tax on mill machinery) effective July 1, 2017, and replaces it with a sales and use tax exemption for mill machinery and parts sold to manufacturers and contractors.

Adds new sales and use tax exemptions for equipment sold to companies engaged in research and development (NAICS 54171), software publishing (NAICS 5112), industrial machinery refurbishing (NAICS 811310), metal recycling, precious metals processing, metal fabrication with $8 million annual receipts, ready-mix concrete companies, and ports facilities handling bulk cargo.

Creates a new "large manufacturing and distribution facility" exemption for equipment used in manufacturing, assembly, or distribution processes at facilities with $80 million private investment and 550+ employees, with forfeiture provisions if investment or employment levels are not met or maintained.

Directs the Revenue Laws Study Committee to study and clarify the scope of the mill machinery exemption by modernizing statutory language and incorporating Department of Revenue administrative interpretations, with findings to be reported to the 2018 Regular Session.

Effective date is July 1, 2017 for the exemption provisions; study directive is effective upon enactment.