§ 105-164.13B. Food exempt from tax. - North Carolina Statutes

§ 105‑164.13B.  Foodexempt from tax.

(a)        State Exemption. – Foodis exempt from the taxes imposed by this Article unless the food is included inone of the subdivisions in this subsection. The following food items aresubject to tax:

(1)        Repealed by SessionLaws 2005‑276, s. 33.10, effective October 1, 2005.

(2)        Dietary supplements.

(3)        Food sold through avending machine.

(4)        Prepared food, otherthan bakery items sold without eating utensils by an artisan bakery. The term"bakery item" includes bread, rolls, buns, biscuits, bagels,croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins,bars, cookies, and tortillas. An artisan bakery is a bakery that meets all ofthe following requirements:

a.         It derives overeighty percent (80%) of its gross receipts from bakery items.

b.         Its annual grossreceipts, combined with the gross receipts of all related persons as defined inG.S. 105‑163.010, do not exceed one million eight hundred thousanddollars ($1,800,000).

(5)        Soft drinks.

(6)        Repealed by SessionLaws 2003‑284, s. 45.6B, effective January 1, 2004.

(7)        Candy.

(b)        Administration ofLocal Food Tax. – The Secretary must administer local sales and use taxesimposed on food as if they were imposed under this Article. This applies tolocal taxes on food imposed under Subchapter VIII of this Chapter and underChapter 1096 of the 1967 Session Laws.  (1998‑212, s. 29A.1(b); 2001‑347, s.2.13; 2001‑489, s. 3(b); 2003‑284, ss. 45.6, 45.6A, 45.6B; 2003‑416,s. 22; 2005‑276, s. 33.10; 2008‑107, s. 28.19(a); 2009‑445,s. 42.)