State Business Income Taxes (North Carolina)
North Carolina Corporate Income Tax Rates
Franchise Tax Returns (Corporations Only)
North Carolina Sales and Use Tax
County Business Property Tax Listing
Catawba County Vehicle Tax
North Carolina Corporate Income Tax Rates
North Carolina corporations pay an income tax on taxable income at a 7.25% rate.
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Franchise Tax Returns (Corporations Only)
North Carolina corporations must calculate and remit an annual franchise tax. The tax is computed and reported on Form CD-405, North Carolina Corporate Franchise And Income Tax Return. The tax is levied on a base amount which is the larger of income or assets or equity. The tax is $1.50 per $1,000 of base, with a minimum tax of $35.
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North Carolina Sales and Use Tax
North Carolina imposes a 6% sales tax on purchases by the end-consumer. The retail merchant (i.e. the business) must collect sales taxes from the end-consumer at the point of sale and remit them monthly to the State of North Carolina. Use Form E-554, Use Tax Report to report the sales tax.
Businesses that intend to resale merchandise to an end-consumer may apply for and obtain a Sales And Use Tax exemption. Use Form E-504, Application For Sales Tax Exemption. A Certificate Of Resale, Form E-590, is provided to the merchant without incurring a sales tax from the manufacturer or vendor.
Businesses that manufacture goods are allowed to purchase machinery and machinery parts at a 1% sales tax rate. Supplies and other consumables are, however, taxed at the 6% rate.
The Use Tax is the complement of the Sales Tax. If a business purchases merchandise for use as a business asset from an out-of-state source and no sales tax is paid, then the business (i.e. the end-consumer) is required to remit to the State of North Carolina a Use Tax. The applicable Use Tax rate parallels the otherwise applicable North Carolina Sales Tax rate.
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County Business Property Tax Listing
Each county in North Carolina imposes a tax (ad valorem) on business tangible personal property. Property subject to this tax includes:
- Machinery and Equipment
- Furniture and Fixtures
- Computer Equipment and Software
- Leaseho1d Improvements
- Supplies (but not Inventories)
As of the Catawba County tax rate is 49.5 cents per $100 (i.e. $.00495 x tax value), and is levied on the cost of the property less a depreciation allowance.
Businesses are required to file a Business Property Tax Listing with the county by January 31st of each year. The business will be subsequently billed by the county for the property tax.
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Catawba County Vehicle Tax
Businesses that own registered vehicles (i.e. having a valid North Carolina tag) will annually pay an "ad valorem" tax on their vehicles. The county will send businesses a County Vehicle Tax Bill. The vehicle tax rate is the same as the county property tax rate.
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