Effective July 1, 1998, North Carolina General Statute 105-164.4 (a) (5) was amended to decrease the state sales tax rate for most food items as follows:

"The rate of two percent (2%) applies to the sales price of food that is not otherwise exempt pursuant to G.S. 105-164.13 but would be exempt pursuant to G.S. 105-164.13 if it were purchased with coupons issued under the Food Stamps Program, 7 U.S.C. § 51."

As the county sales tax rate remains at two percent (2%), the total sales tax rate applicable to most food items is four percent (4%).

Please use the correct mini-chart account indicator of 400 (for 4% sales & use tax on food items) when processing invoice lines for payment on NCAS.