Effective July 1, 2018, "mill machinery" will be fully exempt in North Carolina. "Mill machinery" means machinery, including machinery parts and accessories, purchased by manufacturing industries and plants for use in their manufacturing process.
Currently, mill machinery is exempt from sales and use tax but subject to a 1% privilege tax. Beginning July 1, 2018, the 1% privilege tax will no longer apply. The machinery will continue to be exempt from sales and use tax.