A BILL TO BE ENTITLED
AN ACT TO REDUCE SALES TAXes on LIGHT CONSTRUCTION EQUIPMENT.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.3 is amended by adding a new subdivision to read:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
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(17b)	Light construction equipment. – Equipment that is self‑propelled, has an engine of no more than 160 net horsepower, and is not designed primarily for transportation."
SECTION 2.  G.S. 105‑164.4(a) is amended by adding a new subdivision to read:
"(a)	(Effective until July 1, 2003) A privilege tax is imposed on a retailer at the following percentage rates of the retailer's net taxable sales or gross receipts, as appropriate. The general rate of tax is four and one‑half percent (4 1/2%).
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(8)	The general rate of tax applies to the sales price of light construction equipment sold at retail, including all accessories attached to the equipment when it is delivered to the purchaser. The maximum tax is three hundred dollars ($300.00) per article."
SECTION 3.  This act becomes effective July 1, 2003, and applies to sales made on or after that date.