Important Notice: Exemption for Certain Products Made of Recycled Materials
Effective October 1, 2016, N.C. Gen. Stat. § 105-164.13(68) provides an exemption from sales and use tax for the sale at retail or the storage, use, or consumption in this State of “products that are made of more than seventy-five percent (75%) by weight of recycled materials when the products are sold for use in an accepted wastewater dispersal system as defined in [N.C. Gen. Stat. §] 130A-343.”
N.C. Gen. Stat. § 130A-343(a)(1) defines an “accepted wastewater dispersal system” as “any subsurface wastewater dispersal system, other than a conventional wastewater system, that: (i) has
been previously approved as an innovative wastewater dispersal system by the Department [of Health and Human Services]; (ii) has been in general use in this State as an innovative wastewater dispersal system for more than five years; and (iii) has been approved by the Commission [for Public Health] for general use or use in one or more specific applications. An accepted wastewater dispersal system may be approved for use in applications for which a conventional wastewater system is unsuitable. The Commission [for Public Health] may impose any design, operation, maintenance, monitoring, and management requirements on the use of an accepted wastewater dispersal system that it determines to be appropriate.”
N.C. Gen. Stat. § 130A-290(a)(26) defines “recyclable material” as “those materials which are capable of being recycled and which would otherwise be processed or disposed of as solid waste.”
Purchase Qualifying Products Exempt from Sales and Use Tax
The purchaser of qualifying products should provide the seller with a properly completed Form E-595E, Streamlined Sales and Use Tax Agreement Certificate of Exemption, or the required data elements pursuant to N.C. Gen. Stat. § 105-164.28, as the seller’s authority to exempt the transaction from sales or use tax.
Questions about the information provided in this document, can be directed to the Taxpayer Assistance and Collection Center toll-free at 1-877-252-3052 or by mail to the Taxpayer Assistance Division, North Carolina Department of Revenue, Post Office Box 25000, Raleigh, North Carolina 27640-0640.