NC S346

Repeals G.S. 105-164.14(b) and rewrites G.S. 105-164.13 to establish sales tax exemptions for nonprofits, hospitals, volunteer emergency services, and university-affiliated organizations on tangible personal property, digital property, and services used in carrying on their work.

Exempts organizations that are 501(c)(3) tax-exempt, but excludes those classified as Community Improvement and Capacity Building, Public and Societal Benefit, or Mutual and Membership Benefit entities.

Includes exemptions for single-member LLCs disregarded for tax purposes if owned by a 501(c)(3) organization, qualified retirement facilities, and over-the-counter drugs purchased by hospitals.

Caps the aggregate annual exemption amount at $31,700,000 in tax for any entity and requires nonprofits to obtain a sales tax exemption number from the Department before using the exemption.

Requires real property contractors to provide signed statements and sales receipts to nonprofit entities when purchasing exempt property on their behalf, and establishes a $250 penalty for misuse of nonprofit exemption certificates.

Effective October 1, 2019, for all sales and purchases made on or after that date.