NC H884

Increases the gross receipts threshold for artisanal bakeries to qualify for sales tax exemption from $1,800,000 to $2,400,000 annually

Artisanal bakeries meeting the threshold can sell bakery items (bread, rolls, pastries, donuts, cakes, cookies, etc.) without collecting sales tax when sold without eating utensils

Bakeries must derive over 80% of gross receipts from bakery items to qualify as an artisan bakery

Gross receipts of all related persons (as defined by IRS Code sections 267(b) or 707(b)) are combined when calculating the threshold

Effective October 1, 2025, applying to sales made on or after that date