North Carolina Administrative Code › Title 17 - REVENUE › Chapter 07 - SALES AND USE TAX › Subchapter B - STATE SALES AND USE TAX › Section .4700 - PRINTERS AND NEWSPAPER OR MAGAZINE PUBLISHERS › Section 07B .4701 - COMMERCIAL PRINTERS AND PUBLISHERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Pursuant to G.S.
											  105-164.4, retail sales of items, as the term item is defined in G.S. 105-164.3, by commercial printers or
											  publishers are subject to sales and use tax including subscriptions, plates and dies sold to customers, book
											  binding, and other repair, maintenance, and installation services.
(b) Exempt Purchases of Mill Machinery or Mill Machinery Parts or
											  Accessories by Commercial Printers or Publishers. -- Pursuant to G.S. 105-164.13(5e), purchases by commercial
											  printers and publishers of mill machinery or mill machinery parts or accessories for use in the production
											  phase of printing and publishing, are exempt from sales and use tax. For purposes of this Rule, "Production"
											  as a phase of industrial or manufacturing operations shall mean all steps performed in processing and
											  refining rooms, and in other quarters and departments of a plant, where conditioning, treating, or other
											  operations are done on ingredient materials as an actual routine on the assembly or processing line turning
											  out a finished product of manufacture for sale. The "Production" phase also includes the following:
(1) The movement of raw materials or ingredients from an inventory or a
											  stockpile located on the premises of the manufacturing facility to the assembly or processing line.
(2) The movement of goods in process along the assembly or processing
											  line.
(3) The movement of manufactured products from the assembly
											  or processing line into shipping or storage areas and yards located on the premises of the manufacturing
											  facility.
(4) The work of experimentation and research performed
											  on the manufactured products.
"Production" does not include any activity connected with the
													 movement of raw materials or ingredients into inventory nor does it include "distribution" which is any
													 activity connected with the movement of manufactured products within storage warehouses, shipping rooms, and
													 other such finished product storage areas and the removal of such products therefrom for sale or shipment, or
													 "administration" which is any administrative work of offices, promotion of sales, and collection of accounts.
													 Items that are mill machinery or mill machinery parts or accessories when purchased by a commercial printer
													 or publisher include the following:
(1) Machinery and equipment and
											  parts or accessories thereto for use directly in the production of newspapers, magazines, and other printed
											  material for sale.
(2) Custom made plates and dies for use
											  directly in the production of newspapers, magazines, and other printed material for sale when title to the
											  plates and dies does not pass to the printers' customers.
(3)
											  Tangible personal property such as wood and metal used to fabricate plates and dies for use in the production
											  of printed material for sale when title to the plates and dies does not pass to the printers'
											  customers.
(4) Machinery, equipment, film, and other tangible
											  personal property that are used or consumed by the printer in the production of the plates and dies that are
											  directly used in the production of newspapers, magazines, and other printed material for sale.
(5) Lithographic and gravure plates and dies retained by the printer or
											  publisher that are directly used in the production of newspapers, magazines and other printed material for
											  sale.
(6) Photo engravings, electrotypes, and lithographs for
											  direct use in printing tangible personal property for sale.
(7)
											  Printing presses for direct use in printing tangible personal property for sale.
(8) Cushion paper, cover paper, and tissue for use in building up the
											  printing surface of the press for direct use in printing tangible personal property for sale.
(9) Offset or direct relief duplicating machines and repair parts or
											  accessories for such machines, including offset blankets and plates.
(10) Positives and negatives for use in preparing plates for use in the
											  printing process.
(11) Chemicals used to clean printing
											  machinery.
(12) Metal for making type.
(13) Computers used in the printing process.
(14) Mounting tape for use in the preparation of plates.
(15) Printing machines when the machines are used to produce newspapers or
											  other printed material for sale.
(16) Photographs to be
											  reproduced in newspapers.