A North Carolina privilege tax has been imposed on the purchases of mill machinery and related parts or accessories for use, storage, or consumption by a manufacturing industry or plant. The tax also applies to contractors or subcontractors whose purchases of these items are for use in the performance of a contract with a manufacturing industry or plant. The privilege tax, computed at 1% of the sales price of the machinery, part, or accessory purchased, with a maximum tax of $80 per article, replaces the state’s sales tax on these items to comply with requirements under the Streamlined Sales Tax Project. The privilege tax will be reported on Form E-500J, Machinery, Equipment, and Fuel Tax Return and is imposed on the purchaser instead of the retailer. (Sec. 105-187.51, North Carolina Department of Revenue, January 1, 2006)