GENERAL ASSEMBLY OF NORTH CAROLINA
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-164.14(b), as amended by Chapter 17 of the 1995 Session Laws, reads as rewritten:
and Hospital Drugs. - The Secretary shall make refunds semiannually to
hospitals not operated for profit (including hospitals and medical
accommodations operated by an authority created under the Hospital Authorities
Law, Article 2 of Chapter 131E of the General Statutes), educational
institutions not operated for profit, and churches, orphanages, and other
charitable or religious institutions and organizations not operated for
profit A nonprofit entity included in the following list is
allowed a semiannual refund of sales and use taxes paid by it under
this Article, except under G.S. 105-164.4(a)(4a) and G.S. 105-164.4(a)(4c), by
these institutions and organizations on direct purchases of tangible
personal property for use in carrying on the work of the institutions or
organizations. nonprofit entity:
(1) Hospitals not operated for profit, including hospitals and medical accommodations operated by an authority created under the Hospital Authorities Law, Article 2 of Chapter 131E of the General Statutes.
(2) Educational institutions not operated for profit.
(3) Churches, orphanages, and other charitable or religious institutions and organizations not operated for profit.
(4) Homes for the aged, sick, or infirm whose property is excluded from property tax under G.S. 105-275(32).
Sales and use tax liability indirectly incurred by
these institutions or organizations a nonprofit entity on building
materials, supplies, fixtures, and equipment that become a part of or annexed
to any building or structure that is owned or leased by the institution or
organization nonprofit entity and is being erected, altered, or
repaired for use by the institution or organization nonprofit entity for
carrying on its nonprofit activities is considered a sales or use tax liability
incurred on direct purchases by the institution or organization. The
Secretary shall also make refunds semiannually to all other hospitals not
excluded by this subsection nonprofit entity.
A hospital that is not allowed a refund under this
subsection of sales and use taxes paid on its direct purchases of tangible
personal property is allowed a semiannual refund of sales and use
paid by them it on medicines and drugs purchased for use in
carrying out their its work. This
The refunds allowed under this subsection
certain nonprofit entities and for medicines and drugs purchased by hospitals
do not apply to organizations, corporations, and institutions that are
owned and controlled by the United States, the State, or a unit of local government,
except hospital facilities created under Article 2 of Chapter 131E of the
General Statutes and nonprofit hospitals owned and controlled by a unit of
local government that elect to receive semiannual refunds under this subsection
instead of annual refunds under subsection (c). A
A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund for the first six months of a calendar year is due the following October 15; a request for a refund for the second six months of a calendar year is due the following April 15."
Sec. 2. This act is effective upon ratification and applies to purchases made on or after January 1, 1995.
In the General Assembly read three times and ratified this the 25th day of July, 1995.
Dennis A. Wicker
President of the Senate
Harold J. Brubaker
Speaker of the House of Representatives