North Carolina 2019-2020 Session Status: In Committee Bipartisan · 20 D · 1 I cosponsors

HB 1137 — Nonprofit Sales Tax Exemption.

Last action — Passed 1st Reading

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

108 added · 107 removed

Plain-language change summary

The updated version of Bill HB 1137 adds clarity to the types of entities that are exempt from certain taxes. Notably, it specifies that nonprofit organizations affiliated with universities can receive tax exemptions for facilities designed or provided for them. Additionally, the bill confirms that over-the-counter drugs used by hospitals can also be tax-exempt, ensuring that these important organizations can effectively manage costs. These changes matter because they aim to support nonprofit efforts and healthcare services, ultimately benefiting the community.

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GENERAL ASSEMBLY OF NORTH CAROLINA H.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 H 1 HOUSE BILL 1137 Short Title:
1137 May 14, 2020 SESSION 2019 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH40592-MCf-233 Short Title:
Representative Lofton.
Representatives Lofton, von Haefen, and Harris (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
A BILL TO BE ENTITLED AN ACT TO PROVIDE A SALES TAX EXEMPTION FOR CERTAIN NONPROFIT ENTITIES.
Finance, if favorable, Rules, Calendar, and Operations of the House May 18, 2020 A BILL TO BE ENTITLED AN ACT TO PROVIDE A SALES TAX EXEMPTION FOR CERTAIN NONPROFIT ENTITIES.
The LLC is not an organization that would be properly classified in any of the major group areas of the National Taxonomy of Exempt Entities listed in sub-subdivision b.
The LLC is not an organization that would be properly classified in any of the major group areas of the National *H1137-v-1* General Assembly Of North Carolina Session 2019 Taxonomy of Exempt Entities listed in sub-subdivision b.
*DRH40592-MCf-233* General Assembly Of North Carolina Session 2019 e.
e.
The application for exemption must be in the form required bythe Secretary, be signed by a person with authority to bind the entity, and contain any information required by the Secretary.
The application for exemption must be in the form required bythe Secretary, be signed by a person with authority Page 2 House Bill 1137-First Edition General Assembly Of North Carolina Session 2019 to bind the entity, and contain any information required by the Secretary.
Page 2 DRH40592-MCf-233 General Assembly Of North Carolina Session 2019 (b) Liability.–Anonprofitentitythatdoesnotusetheitemspurchasedwithitsexemption number must pay the tax that should have been paid on the items purchased, plus interest calculated from the date the tax would otherwise have been paid." SECTION 3.
(b) Liability.– Anonprofitentitythatdoesnotusetheitemspurchasedwithitsexemption number must pay the tax that should have been paid on the items purchased, plus interest calculated from the date the tax would otherwise have been paid." SECTION 3.
DRH40592-MCf-233 Page 3
House Bill 1137-First Edition Page 3
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How this bill changes current law

4 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill establishes a sales tax exemption for certain nonprofit entities and clarifies exemption processes.

  • G.S. 105-164.13

    (52a) Tangible personal property, digital property, and services for use in carrying on the work of the following entities, provided the entity is not owned or controlled by the State: ...

    Adds a new exemption category for specific nonprofit entities.

  • G.S. 105-164.29C

    (a) Application. – To be eligible for the exemption provided in G.S. 105-164.13(52a), a nonprofit entity must obtain from the Department a sales tax exemption number...

    Creates a formal application process for nonprofits to gain tax exempt status.

  • G.S. 105-467(b)

    aggregate annual local refund exemption amount allowed an entity under G.S. 105-164.14(b) → aggregate annual local refund exemption amount allowed an entity under G.S. 105-164.13(52a)

    Updates the reference for the local refund exemption amount related to the new nonprofit tax exemption.

  • G.S. 105-236(a)(5a)

    Examples of an exemption certificate include a certificate of exemption, a direct pay certificate, and a conditional exemption certificate. → Examples of an exemption certificate include a certificate of exemption, a direct pay certificate, and a conditional exemption certificate. Misuse under this subdivision includes improper use of a certificate of exemption issued to a nonprofit entity pursuant to G.S. 105-164.29C for direct and indirect purchases by the entity or another person.

    Clarifies penalties for misuse of exemption certificates involving nonprofit entities.

Action History

  1. Passed 1st Reading

  2. Ref to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House

  3. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 34 co-sponsors · 143 not signed on

Sponsors (2)

Co-sponsors (34)

Not signed on (143)

143 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

taxation education
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Frequently asked questions

Who sponsors HB 1137?
HB 1137 is sponsored by Harris, Vernetta Alston (Democratic), Autry, Cynthia Ball (Democratic), Mary Belk (Democratic), Deb Butler (Democratic), Clemmons, Fisher, Gailliard, Garrison, Pricey Harrison (Democratic), Hunt, Insko, Meyer, Montgomery, Marcia Morey (Democratic), Garland E. Pierce (Democratic), Amos L. Quick, III (Democratic), Robert T. Reives, II (Democratic), Russell, Terry, Shelly Willingham (Democratic), Wray, Nasif Majeed (U), Carolyn G. Logan (Democratic), Joe John (Democratic), Zack Hawkins (Democratic), Allison A. Dahle (Democratic), Tracy Clark (Democratic), Becky Carney (Democratic), Cecil Brockman (Democratic), Eric Ager (Democratic), Julie von Haefen (Democratic), Brandon Lofton (Democratic), R. Smith, and K. Smith.
What is the current status of HB 1137?
This bill died with 2019-2020 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 1137?
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