Qualifying Recyclers Taxed at a Reduced Rate in North Carolina

Aug 15th, 2016

Effective July 1, 2016, North Carolina taxes a recycler's purchases of qualifying items at a reduced rate of 1% with a maximum tax of $80 per article.

The reduced rate applies to purchases of equipment, attachments, and repair parts that are (1) capitalized for tax purposes and (2) used in the conversion process. To qualify for the reduced rate, the recycler must gather, obtain, and convert materials into a prepared grade for sale.

This reduced rate does not apply to motor vehicle attachments or repair parts.

http://www.dornc.com/taxes/sales/impnotice081116_recyclers.pdf