Important Notice: Decrease in State Sales and Use Tax Rate

This document serves as notice that the North Carolina General Assembly enacted legislation that reduces the general State rate of sales and use tax from 4.5% to 4.25% effective December 1, 2006 and from 4.25% to 4% effective July 1, 2007. Therefore, effective December 1, 2006, the general State rate of sales and use tax will be 4.25%. Effective July 1, 2007, the general State rate will be 4%. Items subject to the general State rate of sales and use tax are also subject to any applicable local rates of sales and use tax.