Certain Machinery and Equipment Tax

Repeal Effective July 1, 2018

This tax was repealed effected July 1, 2018. For additional information related to the repeal refer to:

Tax Prior to July 1, 2018

Generally, a privilege tax at a rate of one percent (1%) with a maximum tax of eighty dollars ($80.00) per article was imposed on the following:

  • The purchase of mill machinery or mill machinery parts or accessories by manufacturing industries or plants;
  • The purchase of mill machinery or mill machinery parts or accessories by contractors or subcontractors for use in the performance of a contract with a manufacturing industry or plant;
  • Certain purchases by a major recycling facility for use in connection with the facility;
  • Qualifying equipment or attachments or repair parts for equipment purchased by research and development companies under certain conditions;
  • Qualifying equipment or attachments or repair parts for equipment purchased by a software publishing company under certain conditions;
  • The purchase of equipment or an attachment or repair part for equipment by an industrial machinery refurbishing company that meets certain requirements;
  • Qualifying purchases by a company located at a ports facility for waterborne commerce;
  • Qualifying purchases of mill machinery, distribution machinery, or parts or accessories for mill machinery by a qualifying large manufacturing and distribution facility;
  • Qualifying purchases by certain recyclers other than those subject to the privilege tax as a major recycling facility;
  • Qualifying purchases by a company primarily engaged at the establishment in processing tangible personal property for the purpose of extracting precious metals;
  • Qualifying purchases by certain companies engaged in the fabrication of metal work.

The privilege tax was imposed on the purchaser or lessee of the qualifying property, and the purchaser or lessee was liable for accruing and remitting the tax to the Department.

Questions

If you have questions about the tax that was due for periods prior to July 1, 2018, contact the Sales and Use Tax Division by calling 919-754-2500 and select the sales and use tax option.

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