Sales and Use Tax Directive 23-3

This directive provides the interpretation of the Secretary of Revenue regarding the sales and use tax exemption for certain items used by boats transporting freight.

The following important information is addressed in this directive:

• Effective November 1, 2023, North Carolina expands the sales and use tax exemption for fuel and consumables used by boats transporting freight on inland and intracoastal waterways.
• Who can make exempt purchases?
• What is an eligible vessel?
• What items qualify for the exemption?