The mill machinery tax is a privilege or excise tax imposed on North Carolina manufacturers that purchase mill machinery, parts and accessories. At a taxation rate of 1 percent of the price of such machinery (with a cap of $80 per article), it is a direct and onerous tax on manufacturers and other industries that form the backbone of North Carolina’s competitive economy.
This morning, members of the North Carolina House of Representatives approved in the budget bill measures to repeal this burdensome tax on production in North Carolina. The NC Chamber applauds the quick and decisive action of House members in voting to repeal the mill machinery tax. We thank them for continuing to show strong support for North Carolina’s job creators by removing a significant impediment to economic growth in our state. We are encouraged by the recent positive direction this issue has taken in the General Assembly.
In removing a drag on capital investment in North Carolina, a full repeal of the mill machinery tax would encourage the creations of new manufacturing jobs statewide and help revitalize communities across North Carolina – urban and rural alike. Furthermore, it would enhance North Carolina’s competitiveness and maintain our status as an attractive destination for new manufacturing ventures. We will keep you updated as this issue continues to move in the General Assembly.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber