A BILL TO BE ENTITLED
AN ACT to exempt electricity and piped natural gas sold to manufacturers from the sales and use tax AND THE excise tax on piped natural gas.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.4(1f)b. is repealed.
SECTION 2.  G.S. 105‑164.4(1h) is repealed.
SECTION 3.  G.S. 105‑164.13 is amended by adding a new subdivision to read:
"§ 105‑164.13.  Retail sales and use tax.
The sale at retail and the use, storage, or consumption in this State of the following tangible personal property and services are specifically exempted from the tax imposed by this Article: 
…
(54)	Electricity sold to a manufacturer for use in connection with the operation of the manufacturing facility."
SECTION 4.  G.S. 105‑187.41(c) reads as rewritten:
"(c)	Exemptions. – The tax imposed by this section does not apply to the following:
(1)	Piped natural gas received by a gas city for consumption by that  city.
(2)	Piped natural gas delivered by a gas city to a sales or transportation customer of the gas city.
(3)	Piped natural gas received by a manufacturer for use in connection with the operation of the manufacturing facility."
SECTION 5.  This act becomes effective July 1, 2006.  Sections 1 through 3 of this act apply to sales made on or after that date, and Section 4 of this act applies to deliveries made on or after that date.