NC H1137

Creates sales tax exemption for tangible personal property, digital property, and services used by qualifying nonprofit entities, including hospitals, 501(c)(3) organizations (excluding certain classifications), volunteer fire departments, qualified retirement facilities, and university-affiliated nonprofits.

Exemption excludes purchases of electricity, telecommunications service, piped natural gas, video programming, prepaid meal plans, aviation fuel, and spirituous liquor.

Caps aggregate annual exemption at $31,700,000 per entity per fiscal year, with separate $13,300,000 cap for local sales tax refunds.

Requires nonprofit entities to obtain sales tax exemption number from the Department of Revenue and creates $250 penalty for misuse of exemption certificates.

Effective October 1, 2019, and expires July 1, 2021.