Important Notice: Exemption for Packaging Items for Food and Prepared Food Under a Prepaid Meal Plan

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This document serves as notice that on July 11, 2016, the Governor signed Session Laws 2016-92. The Session Laws amend the language in N.C. Gen. Stat. § 105-164.13(63) effective July 11, 2016. As amended, the sale at retail, and the use, storage, and consumption in this State on or after July 11, 2016, of the following are exempt from sales and use tax: “[f]ood and prepared food to be provided to a person entitled to the food and prepared food under a prepaid meal plan subject to tax under G.S. 105-164.4(a)(12). This exemption applies to packaging items including wrapping paper, labels, plastic bags, cartons, packages and containers, paper cups, napkins and drinking straws, and like articles that meet all of the following requirements:
a. Used for packaging, shipment, or delivery of the food and prepared food.
b. Constitute a part of the sale of the food and prepared food.
c. Delivered with the food and prepared food."