GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	1 

SENATE BILL 109*

Short Title:  Aquaculture Sales Tax Exemption.	(Public)

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Sponsors: Senators Albertson; Warren, Carpenter, and Speed.

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Referred to:  Finance.

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February 1, 1995

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT SALES TAX PREFERENCES FOR AGRICULTURE APPLY TO AQUACULTURE.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.3 is amended by renumbering subdivision (1) as subdivision (2) and adding the following definitions in the appropriate alphabetical order:
"(1)	Aquaculture. – Defined in G.S. 106-758.
(1.1)	Aquaculture facility. – Defined in G.S. 106-758.
(1.2)	Aquatic species. – Defined in G.S. 106-758."
Sec. 2.  G.S. 105-164.4(a)(1d) reads as rewritten:
"(1d)	The rate of one percent (1%) applies to the sales price of the following articles.  The maximum tax is eighty dollars ($80.00) per article.
a.	Sales of machines and machinery, whether animal or motor drawn or operated, and parts and accessories for these machines and machinery, to farmers, dairy operators, poultry farmers, egg producers, livestock farmers, and aquatic species farmers for use by them in the planting, cultivating, harvesting, or curing of farm crops, in the production of dairy products, poultry, eggs, or livestock, or in aquaculture.  Items that are exempt from tax under G.S. 105-164.13(4c) are not subject to tax under this section. 
		The term 'machines and machinery' as used in this subdivision is defined as follows:
		The term shall include all vehicular implements, designed and sold for any use defined in this subdivision, which are operated, drawn or propelled by motor or animal power, but shall not include vehicular implements which are operated wholly by hand, and shall not include any motor vehicles required to be registered under Chapter 20 of the General Statutes.
		The term shall include all nonvehicular implements and mechanical devices designed and sold for any use defined in this subdivision, which have moving parts, or which require the use of any motor or animal power, fuel, or electricity in their operation but shall not include nonvehicular implements which have no moving parts and are operated wholly by hand.
		The term shall also include metal flues sold for use in curing tobacco, whether such flues are attached to handfired furnaces or used in connection with mechanical burners.
b.	Sales of mill machinery or mill machinery parts and accessories to manufacturing industries and plants, and sales to contractors and subcontractors purchasing mill machinery or mill machinery parts and accessories for use by them in the performance of contracts with manufacturing industries and plants, and sales to subcontractors purchasing mill machinery or mill machinery parts and accessories for use by them in the performance of contracts with general contractors who have contracts with manufacturing industries and plants. As used in this paragraph, the term 'manufacturing industries and plants' does not include delicatessens, cafes, cafeterias, restaurants, and other similar retailers that are principally engaged in the retail sale of foods prepared by them for consumption on or off their premises.
c.	Sales of central office equipment and switchboard and private branch exchange equipment to telephone companies regularly engaged in providing telephone service to subscribers on a commercial basis, and sales to these companies of prewritten computer programs used in providing telephone service to their subscribers.
d.	Sales to commercial laundries or to pressing and dry cleaning establishments of machinery used in the direct performance of the laundering or the pressing and cleaning service and of parts and accessories thereto.
e.	Sales to freezer locker plants of machinery used in the direct operation of said freezer locker plant and of parts and accessories thereto.
f.	Sales of broadcasting equipment and parts and accessories thereto and towers to commercial radio and television companies which are under the regulation and supervision of the Federal Communications Commission.
g.	Sales to farmers of bulk tobacco barns and racks and all parts and accessories thereto and similar apparatus used for the curing and drying of any farm produce.
h.	Sales to farmers of grain, feed or soybean storage facilities and accessories thereto, whether or not dryers are attached, and all similar apparatus and accessories thereto for the storage of grain, feed or soybeans.
i.	Sales of containers to farmers or producers for use in the planting, producing, harvesting, curing, marketing, packaging, sale, or transporting or delivery of their products when such containers do not go with and become part of the sale of their products at wholesale or retail."
Sec. 3.  G.S. 105-164.13(2) reads as rewritten:
"(2)	Seeds; remedies, vaccines, medications, litter materials, and feeds for livestock and poultry and for commercially raised aquatic species; rodenticides, insecticides, herbicides, fungicides, and pesticides for livestock, poultry, aquaculture, and agriculture; defoliants for use on cotton or other crops; plant growth inhibitors, regulators, or stimulators for aquaculture or agriculture including systemic and contact or other sucker control agents for tobacco and other crops."
Sec. 4.  G.S. 105-164.13(4c) reads as rewritten:
"(4c)	Commercially manufactured swine, livestock, and poultry facilities and commercially manufactured aquaculture facilities to be used for commercial purposes for housing, raising, or feeding of swine, livestock, aquatic species, or poultry or for housing equipment necessary for these commercial activities; building materials, supplies, fixtures, and equipment to be used in the construction, repair, or improvement and that become a part of an enclosure or structure specifically designed, constructed and used for such above commercial purposes; and commercially manufactured swine, livestock, poultry, and aquaculture equipment, parts and accessories therefor placed or installed in or affixed to these facilities, enclosures, or structures."
Sec. 5.  This act becomes effective July 1, 1995.