A BILL TO BE ENTITLED
AN ACT to exempt fuel sold to manufacturers from the sales and use tax, the excise tax on piped natural gas, and the excise tax on manufacturing fuel and certain machinery and equipment.
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  G.S. 105‑164.4(1f)b. is repealed.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  G.S. 105‑164.4(1h) is repealed.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: 
…
(56)	Fuel, including 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.  G.S. 105‑187.51A is repealed.
SECTION 6.  This act becomes effective July 1, 2007.  Sections 1 through 3 of this act apply to sales made on or after that date, Section 4 of this act applies to deliveries made on or after that date, and Section 5 applies to purchases made on or after that date.