§ 105-187.51B. Tax imposed on certain recyclers, research and development companies, and industrial machinery refurbishing companies. - North Carolina Statutes

§ 105‑187.51B.  Taximposed on certain recyclers, research and development companies, andindustrial machinery refurbishing companies.

(a)        Tax. – A privilegetax is imposed on the following:

(1)        A major recyclingfacility that purchases any of the following tangible personal property for usein connection with the facility:

a.         Cranes, structuralsteel crane support systems, and foundations related to the cranes and supportsystems.

b.         Port and dockfacilities.

c.         Rail equipment.

d.         Material handlingequipment.

(2)        A research anddevelopment company in the physical, engineering, and life sciences that isincluded in industry 54171 of NAICS and that purchases equipment or anattachment or repair part for equipment that meets all of the followingrequirements:

a.         Is capitalized bythe company for tax purposes under the Code.

b.         Is used by thecompany in the research and development of tangible personal property.

c.         Would be consideredmill machinery or mill machinery parts or accessories under G.S. 105‑187.51if it were purchased by a manufacturing industry or plant and used in theresearch and development of tangible personal property manufactured by theindustry or plant.

(3)        A softwarepublishing company that is included in the industry group 5112 of NAICS andthat purchases equipment or an attachment or repair part for equipment thatmeets all of the following requirements:

a.         Is capitalized bythe company for tax purposes under the Code.

b.         Is used by thecompany in the research and development of tangible personal property.

c.         Would be consideredmill machinery under G.S. 105‑187.51 if it were purchased by amanufacturing industry or plant and used in the research and development oftangible personal property manufactured by the industry or plant.

(4)        An industrialmachinery refurbishing company that is included in industry group 811310 ofNAICS and that purchases equipment or an attachment or repair part forequipment that meets all of the following requirements:

a.         Is capitalized bythe company for tax purposes under the Code.

b.         Is used by thecompany in repairing or refurbishing tangible personal property.

c.         Would be consideredmill machinery under G.S. 105‑187.51 if it were purchased by amanufacturing industry or plant and used by the industry or plant tomanufacture tangible personal property.

(b)        Rate. – The tax isone percent (1%) of the sales price of the equipment or other tangible personalproperty. The maximum tax is eighty dollars ($80.00) per article.  (2005‑276, s. 33.21;2006‑66, s. 24.9(a); 2006‑196, s. 12; 2007‑323, s. 31.7(a);2007‑527, s. 13(a); 2008‑107, s. 28.21(a).)