Amends GS 105-164.13, which exempts from the sales and use tax imposed by Article 5 of GS Chapter 105 the sale at retail and the use, storage, or consumption in the state of specifically listed tangible personal property, digital property, and services, by adding a new subsection (66) to exempt tangible personal property, other than a passenger automobile with a price exceeding $100,000 or not used principally for business purposes or a watercraft used principally for entertainment and pleasure outings for which no admission is charged, if all of the following are met: (1) it is a leasehold improvement or new equipment used to produce goods or deliver services by a small business having gross annual sales of not more than $2 million, (2) it is capitalized by the taxpayer for tax purposes under the Code, and (3) it has a value of at least $50,000. Effective July 1, 2016, and applies to sales made on or after that date.

Amends GS 105-275 to add a new subsection (49) to the classes of property designated as special classes under Article V, Section 2(2), of the Constitution, and excluded from the tax base, providing 15% of the appraised value of tangible personal property is exempt from sales tax under GS 105-164.13(66) if the tangible personal property has a value of at least $100,000. Effective for taxes imposed for taxable years beginning on or after July 1, 2016.