A BILL TO BE ENTITLED
AN ACT to clarify that a port facility that utilizes specialized machinery to process bulk cargo into a form suitable for delivery and use by a MANUFACTURING facility qualifies as a MANUFACTURING facility for purposes of the privilege tax on mill machinery. 
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑187.51 reads as rewritten:
"§ 105‑187.51.  Tax imposed on mill machinery.
(a)	Scope. – A privilege tax is imposed on the following persons:
(1)	A manufacturing industry or plant that purchases mill machinery or mill machinery parts or accessories for storage, use, or consumption in this State. A manufacturing industry or plant does not include a delicatessen, cafe, cafeteria, restaurant, or another similar retailer that is principally engaged in the retail sale of foods prepared by it for consumption on or off its premises. A manufacturing industry or plant does include a port facility for waterborne commerce which, by use of specialized machinery, unloads or processes bulk cargo to make it suitable for delivery to and use by manufacturing facilities.
(2)	A contractor or subcontractor that purchases mill machinery or mill machinery parts or accessories for use in the performance of a contract with a manufacturing industry or plant.
(3)	A subcontractor that purchases mill machinery or mill machinery parts or accessories for use in the performance of a contract with a general contractor that has a contract with a manufacturing industry or plant."
(b)	Rate. – The tax is one percent (1%) of the sales price of the machinery, part, or accessory purchased. The maximum tax is eighty dollars ($80.00) per article. As used in this section, the term "accessories" does not include electricity."
SECTION 2.  This act is effective when it becomes law.