SECTION .1000 ‑ BARBERS: BEAUTY SHOP OPERATORS: SHOE
REPAIRMEN: WATCH REPAIRMEN
17 NCAC 07B .1001 BARBER AND BEAUTICIAN SUPPLIES
(a) Sales to barber and beauty shop operators of tools,
furniture, fixtures, equipment, materials, health and beauty aids and any and
all other supplies purchased for use in connection with the operation of their
business are subject to the applicable statutory state and local sales or use
tax. Barber and beauty shop supply houses and other businesses making sales of
the above items to barber and beauty shop operators to be used or consumed in
rendering personal services to their customers are liable for collecting and
remitting the applicable statutory state and local sales or use tax to this
Department on such sales.
(b) Barber and beauty shop operators who purchase hair
tonics, cosmetics and other health and beauty aids for resale and who maintain
an inventory and facilities for regularly and continuously making retail sales
of such items to their customers shall register with this Department as retail
merchants and are liable for collecting and remitting the applicable statutory
state and local sales or use tax on such sales. Barber and beauty shop
operators purchasing hair tonics, cosmetics and other health and beauty aids,
some of which are regularly and continuously sold to their customers and some
of which are used or consumed in rendering personal services to their
customers, may purchase such items without payment of tax to barber and beauty
shop supply houses and other suppliers by furnishing the suppliers with
properly executed Streamlined Sales Tax Agreement Certificates of Exemption,
Form E-595E. By executing the certificates, the barber and beauty shop
operators assume responsibility for payment of tax directly to this department
on the sales price of items sold to their customers and on the cost price of
items used or consumed in rendering personal services to their customers. The
above provisions do not apply to barber and beauty shop operators who make occasional
or infrequent sales of hair tonics and other health and beauty aids from their
stock of merchandise which was purchased to be used in rendering services to
their customers. Receipts of barber and beauty shop operators derived from
rendering personal services are not taxable.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; October 1, 1993; October 1,
1991.