North Carolina ~ Sales and Use Tax: Extension of Conditional Exemption Allowed for Certain Farmers

For purposes of the conditional exemption from North Carolina sales and use tax for items purchased for use in farming operations by certain persons who do not meet the definition of a “qualifying farmer” but satisfy certain criteria, a person can apply for a one-year extension of their conditional exemption certificate beyond the original three-year period provided certain conditions are met.

A person may request a one-year extension of their conditional exemption certificate provided:

— the person holds a conditional exemption certificate that is scheduled to expire within 30 days of an extension request;

— the person suffers a weather-related disaster that prevents the person from becoming eligible for a qualifying exemption certificate; and

— the person provides the North Carolina Department of Revenue with: (a) documents that show that, but for the disaster, the person would have earned $10,000 or more in gross sales for the year in which the disaster occurred; (b) documentation of revenues and expenses relating to the damaged crop; and (c) an affidavit from a county extension director or FSA county committee that the disaster occurred in the area of the county in which the person farms.

This provisions is effective for taxes imposed for taxable years beginning on or after July 1, 2017.

Property tax provisions of this legislation are discussed separately (TAXDAY, 2017/07/17, S.8).

Ch. 108 (S.B. 615), Laws 2017, effective as noted



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