NC S497

Repeals G.S. 105-164.14(b) and replaces it with a new exemption framework for nonprofit entities in G.S. 105-164.13(52a).

Extends sales tax exemptions to hospitals not operated for profit, 501(c)(3) organizations (with certain exclusions), volunteer fire departments, nonprofit LLCs owned by 501(c)(3) entities, qualified retirement facilities, university-affiliated nonprofits, and over-the-counter drugs for certain hospitals.

Caps the aggregate annual exemption amount for nonprofits at $31,700,000 in tax per fiscal year.

Requires nonprofits to obtain a sales tax exemption number from the Department and establishes that nonprofits must pay back taxes plus interest if items purchased with the exemption are not used as intended.

Becomes effective October 1, 2017, and applies to sales and purchases made on or after that date.