NC H882

Repeals G.S. 105-164.14(b) and creates a new sales tax exemption framework in G.S. 105-164.13(52a) for nonprofit entities including nonprofits exempt under 501(c)(3), nonprofit hospitals, volunteer fire departments, and university-affiliated nonprofits.

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

Caps the aggregate annual exemption at $31,700,000 per fiscal year for state tax and $13,300,000 for local sales and use tax, with specific documentation requirements for real property contractors.

Establishes a new exemption application process requiring nonprofits to obtain a sales tax exemption number from the Department and creates liability for nonprofits that misuse exemption numbers.

Becomes effective October 1, 2023, and applies to sales and purchases made on or after that date.