SECTION .0800 ‑ EXEMPTIONS
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.