North Carolina Tax: Legislative Changes in North Carolina Tax

North Carolina Department of Revenue announced some legislative changes about tax matters on 2009 Session of the General Assembly. A summary of the legislative changes are below:

- Aircraft simulators to be used for flight crew training and maintenance training will be exempt from tax, effective 2009 October 1.

- Tax exemption for door to door sales of magazines is abolished, magazine subscriptions will be taxed at the combined State and  local tax rates, effective 2010 January 1.

- Tax exemption for electronically delivered computer software is abolished. The tax exemption now applies to only professional use of software: when sold for use on enterprise server operating systems, when sold to a data center, when sold to parties in telecommunications and internet access services, effective 2010 January 1.

- Taxpayers making a prepayment for Sales and Use Tax using Form E-500 are required to make one payment for the balance of the current reporting period and another payment for prepayment of the next reporting period.

- Retailers and wholesale merchants are required to keep tax records for 3 years, effective 2009 August 7.

- Form E-543 is not necessary anymore

- A transit tax of 0.25% or 0.50% to be imposed by the County authority, effective 2009 August 27.

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