North Carolina 2025-2026 Regular Session

North Carolina House Bill H884 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 884
	3	+	H D
	4	+	HOUSE BILL DRH10390-NIf-118
	5	+
5	6
6	7
7	8		Short Title: Prepared Food Tax - Modification. (Public)
8		-	Sponsors: Representatives Wheatley, F. Jackson, and Charles Smith (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Finance, if favorable, Rules, Calendar, and Operations of the House
11		-	April 14, 2025
12		-	H884 -v-1
	9	+	Sponsors: Representative Wheatley.
	10	+	Referred to:
	11	+
	12	+	DRH10390 -NIf-118
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO INCREASE THE GROSS RECEIPTS THRESHOLD FOR ARTISANAL 2
15	15		BAKERIES EXEMPT FROM THE SALES TAX. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		SECTION 1. G.S. 105-164.13B reads as rewritten: 5
18	18		"§ 105-164.13B. Food exempt from tax. 6
19	19		(a) State Exemption. – Food is exempt from the taxes imposed by this Article unless the 7
20	20		food is included in one of the subdivisions in this subsection. The following food items are 8
21	21		subject to tax: 9
22	22		(1) Repealed by Session Laws 2005-276, s. 33.10, effective October 1, 2005. 10
23	23		(2) Dietary supplements. 11
24	24		(3) Food sold through a vending machine. 12
25	25		(4) Prepared food, other than bakery items sold without eating utensils by an 13
26	26		artisan bakery. The term "bakery item" includes bread, rolls, buns, biscuits, 14
27	27		bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, 15
28	28		bars, cookies, and tortillas. An artisan bakery is a bakery that meets all of the 16
29	29		following requirements: 17
30	30		a. It derives over eighty percent (80%) of its gross receipts from bakery 18
31	31		items. 19
32	32		b. Its annual gross receipts, combined with the gross receipts of all 20
33	33		related persons, do not exceed one million eight hundred thousand 21
34	34		dollars ($1,800,000). two million four hundred thousand dollars 22
35	35		($2,400,000). For purposes of this subdivision, the term "related 23
36	36		person" means a person described in one of the relationships set forth 24
37	37		in section 267(b) or 707(b) of the Code. 25
38	38		(5) Soft drinks. 26
39	39		(6) Repealed by Session Laws 2003-284, s. 45.6B, effective January 1, 2004. 27
40	40		(7) Candy. 28
41	41		(b) Administration of Local Food Tax. – The Secretary must administer local sales and 29
42	42		use taxes imposed on food as if they were imposed under this Article. This applies to local taxes 30
43	43		on food imposed under Subchapter VIII of this Chapter and under Chapter 1096 of the 1967 31
44	44		Session Laws." 32
45	45		SECTION 2. This act becomes effective October 1, 2025, and applies to sales made 33
46	46		on or after that date. 34
	47	+	H.B. 884
	48	+	Apr 9, 2025
	49	+	HOUSE PRINCIPAL CLERK