A BILL TO BE ENTITLED
AN ACT to clarify the mill machinery tax benefit.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.13(5e) reads as rewritten:
"(5e)	Sales of mill machinery or mill machinery parts or accessories to any of the persons listed in this subdivision. For purposes of this subdivision, the term "accessories" does not include electricity. The persons are:
a.	A manufacturing industry or plant. A manufacturing industry or plant does not include (i) a delicatessen, cafe, cafeteria, restaurant, or another similar retailer that is principally engaged in the retail sale of food prepared by it for consumption on or off its premises or (ii) a production company. For purposes of determining the taxability of mill machinery or mill machinery parts or accessories under this sub‑subdivision, the determination of whether a person is or is excluded from a manufacturing plant or industry shall relate to the date of purchase.
b.	A contractor or subcontractor if the purchase is for use in the performance of a contract with a manufacturing industry or plant.
c.	A subcontractor if the purchase is for use in the performance of a contract with a general contractor that has a contract with a manufacturing industry or plant."
SECTION 2.  The General Assembly finds that the language contained in G.S. 105‑164.13(5e)a. and the language contained in the mill machinery tax benefit previously contained in G.S. 105‑187.51(a)(1) is substantially identical for purposes of scope, and that the clarification provided in this act for purposes of the sales tax exemption should be used by the Department of Revenue for all determinations regarding persons claiming the mill machinery tax benefit from the time of its enactment until the time of its replacement with the tax exemption modified in Section 1 of this act. This act is intended solely to clarify the existing state of the law and the intent of the General Assembly with respect to the correct interpretation and meaning of the scope of the law both in its current form as a sales tax exemption and in its former iteration as a privilege tax provision.
SECTION 3.  This act is effective when it becomes law.