Dry-Cleaning Solvent Tax

Dry-cleaning solvent tax is collected for cleanup of dry-cleaning solvent contamination. The tax is imposed on each gallon of dry-cleaning solvent sold by a retailer to a dry-cleaning facility or purchased by a dry-cleaning facility from outside North Carolina for storage, use, or consumption in North Carolina. The dry-cleaning solvent tax is $10.00 for each gallon of dry-cleaning solvent that is halogenated hydrocarbon-based and $1.35 for each gallon of dry-cleaning solvent that is hydrocarbon-based. These taxes are in addition to all other taxes. The tax expires on January 1, 2020.

The dry-cleaning solvent tax is to be reported separately to the Department on the Dry-Cleaning Solvent Tax Return, Form E-500S. Information about the filing frequency and due date requirements can be found in Filing Frequency and Due Dates. For additional information on the dry-cleaning solvent tax, refer to Sales and Use Tax Technical Bulletin 29-3.