NC S441

Repeals G.S. 105-164.14(b) and revises G.S. 105-164.13 to provide sales tax exemptions for tangible personal property, digital property, and services used by qualifying nonprofit entities, including hospitals, 501(c)(3) organizations, volunteer fire departments, single-member LLCs owned by nonprofits, qualified retirement facilities, and university-affiliated nonprofits.

Excludes from exemption nonprofits classified in National Taxonomy of Exempt Entities major groups for Community Improvement and Capacity Building, Public and Societal Benefit, or Mutual and Membership Benefit.

Caps annual state exemption amount at $31,700,000 per fiscal year and annual local exemption refund amount at $13,300,000, and excludes purchases of electricity, telecommunications, natural gas, video programming, prepaid meal plans, aviation fuel, and spirituous liquor.

Requires nonprofits to obtain a sales tax exemption number from the Department through application, and requires real property contractors to provide exemption certificates and signed statements documenting purchases made on behalf of exempt entities.

Establishes $250 penalty for improper use of nonprofit exemption certificates and makes the act effective October 1, 2021.