North Carolina DOR Rules Mill Machinery Purchases Exempt From Sales Tax

The North Carolina Department of Revenue (DOR) determined that the taxpayer’s purchases of mill machinery, mill machinery parts, and accessories used in the production phase of manufacturing precision components are exempt from North Carolina sales and use tax under N.C. Gen. Stat. § 105-164.13(5e). However, the Department clarified that any equipment used before or after the production phase does not qualify for the exemption. [N.C. Dep’t of Revenue, SUPLR-2025-0006, 12/11/2025]

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