Important Notice: Precious Metal Extraction Companies

This document serves as notice that on July 14, 2016, the Governor signed Session Laws 2016-94. The Session Laws enact N.C. Gen. Stat. § 105-187.51B(a)(7) that provides effective July 1, 2016, a privilege tax is imposed on certain purchases by “[a] company primarily engaged at the establishment in processing tangible personal property for the purpose of extracting precious metals, as defined in [N.C. Gen. Stat. §] 66-406, to determine the value for potential purchase.” The privilege tax applies to the purchase of equipment or an attachment or repair part for the equipment that meets all of the following requirements: a. Is capitalized by the company for tax purposes under the Code. b. Is used by the company in processing tangible personal property for the purpose of extracting precious metals to determine the value for potential purchase.