Section .0800 ‑ Exemptions

Link to law: 17 - revenue/chapter 04 - license and excise tax division/subchapter c/17 ncac 04c .0801.html
Published: 2015

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17 NCAC 04C .0801          FEDERAL GOVERNMENT

(a)  Non-tax-paid cigarettes may be sold to the federal

government and its instrumentalities, such as the Armed Forces Exchange

Services, but sales by such services shall be limited to members of the armed

forces and their dependents who hold identification cards entitling them to

make purchases through armed forces exchange services.

(b)  Whenever deliveries of non-tax-paid cigarettes are made

by distributors to armed forces exchange services, the person making such

delivery shall have in his actual possession invoices for such cigarettes which

shall show date, invoice number, name and address of distributor, and the name

and address of the purchaser and the quantity and brands of cigarettes being

transported.  If these conditions are not complied with, the non-tax-paid

cigarettes shall be subject to confiscation, and the distributor taxed on such

sales or deliveries made in an unauthorized manner.  In the event of such

deliveries of non-tax-paid cigarettes, the cigarettes shall be physically

delivered by the distributor's conveyance or a duly authorized common carrier

directly to the situs where the installation of the governmental agency is

located.  Upon such delivery the distributor shall require a duly receipted

invoice or copy thereof from the governmental agent, designated to accept

delivery.  Distributor shall have a bona fide bill of lading, if delivery is

made by common carrier.

(c)  No sales of non-tax-paid cigarettes on military

installations may be made through vending machines, other than those owned and

operated by the federal government or instrumentalities thereof.

(d)  If a person engages in the sale of cigarettes on a

military reservation, regardless of the fact that he may have a contract with

the federal government, whereby the federal government will receive a

commission, flat fee or some other type of compensation on such sales, same

does not exempt the sale of such cigarettes from the cigarette excise tax.  In

such instance, such sales would not be made by the federal government or an

instrumentality of the federal government.  Instead, on all such sales, the

cigarette tax is due.


History Note:        Authority G.S. 105‑113.8; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994; October 30, 1981.