Section .0100 ‑ General Provisions

Link to law: http://reports.oah.state.nc.us/ncac/title 17 - revenue/chapter 04 - license and excise tax division/subchapter c/subchapter c rules.html
Published: 2015

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SUBCHAPTER 4C ‑ CIGARETTE TAX

 

SECTION .0100 ‑ GENERAL PROVISIONS

 

17 NCAC 04C .0101          DEFINITIONS

In addition to those definitions as set out in G.S. 105‑113.4,

the following terms and phrases as used in this Subchapter shall, unless the

context requires otherwise, have the following meanings:

(1)           Article.  Tobacco Products Tax Act or Tobacco

Products Tax Article, Article 2A, Chapter 105 of the General Statutes of North

Carolina;

(2)           Department.  North Carolina Department of Revenue;

(3)           Excise Tax.  The excise tax levied under G.S. 105‑113.5,

G.S. 105‑113.6, and G.S. 105‑113.35;

(4)           In this State or within this State ‑ Within

the exterior limits of the State of North Carolina, and includes all territory

within such limits owned by, leased by or ceded to the United States of

America;

(5)           Other Tobacco Product ‑ A cigar or any other

product that contains tobacco, other than a cigarette, and is intended for

inhalation or oral use;

(6)           Revenue Agent.  Revenue officer, auditor or other

personnel of the North Carolina Department of Revenue authorized by the

secretary to act in his behalf;

(7)           State.  State of North Carolina;

(8)           Vending Machine.  Dispenser or dispensing machine;

(9)           Wholesale Cigarette Dealer.  Any person who sells

cigarettes to others for resale by them who does not qualify as a distributor

under the definition of distributor in G.S. 105‑113.4.

 

History Note:        Authority G.S. 105‑113.4; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994; June 1, 1992; October 30,

1981.

 

 

17 NCAC 04C .0102          RATE OF EXCISE

STAMP TAX

17 NCAC 04C .0103          RATE OF DISCOUNT ALLOWED

 

History Note:        Authority G.S. 105‑113.5; 105‑113.21;

105‑113.37;

Eff. February 1, 1976;

Repealed Eff. October 30, 1981.

 

 

 

 

SECTION .0200 ‑ CIGARETTE DISTRIBUTORS LICENSE

 

17 NCAC 04C .0201          APPLICATION OF LICENSE

(a)  Before any distributor's license is issued, Application

for Cigarette Distributor's License (Form B‑A‑1) shall be made. 

The application shall be signed and verified by oath or affirmation by:

(1)           the owner, if a natural person,

(2)           a member or partner, if an association or a

partnership, or

(3)           an executive officer, or any other person

authorized in writing by the corporation, if a corporation.

(b)  The distributor shall notify the Secretary in writing

of any changes in the information previously provided on the license

application as such changes occur.

(c)  The distributor shall also notify the Secretary in

writing of the exact location and telephone number of all warehouse or storage

facilities where non-tax-paid cigarettes are received or stored before such

facilities are placed in use.

 

History Note:        Authority G.S. 105‑113.11; 105‑113.12;

105‑262;

Eff. February 1, 1976;

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

 

 

 

17 NCAC 04C .0202          OUT‑OF‑STATE DISTRIBUTOR

17 NCAC 04C .0203          LICENSE NOT PRORATED

 

History Note:        Authority G.S. 105‑113.13; 105‑113.24;

105‑113.37;

Eff. February 1, 1976;

Repealed Eff. October 30, 1981.

 

 

 

17 NCAC 04C .0204          EXHIBIT OF LICENSE

Upon approval of the application for license, a continuing

license (Form B‑A‑4) is issued and same shall be exhibited in the

place of business for which it is issued.

 

History Note:        Authority G.S. 105‑113.17; 105‑262;

Eff. February 1, 1976.

 

 

 

17 NCAC 04C .0205          DISTRIBUTOR TO NOTIFY MANUFACTURER

It shall be the responsibility of each cigarette distributor

to notify the cigarette manufacturers from whom non-tax-paid cigarettes are

purchased or received of the cigarette distributor's license issued by the

Secretary and of any subsequent changes to the license.

 

History Note:        Authority G.S. 105‑113.12; 105‑113.13;

105‑262;

Eff. October 30, 1981;

Amended Eff. January 1, 1994.

 

 

 

 

SECTION .0300 ‑ PURCHASE AND SALE OF DECAL STAMPS

 

17 NCAC 04C .0301          DECAL STAMPS

17 NCAC 04C .0302          CREDIT SALES OF STAMPS

 

History Note:        Authority G.S. 105‑113.19; 105‑262;

Eff. February 1, 1976;

Amended Eff. April 1, 1986; July 1, 1984; October 30, 1981;

Repealed Eff. January 1, 1994.

 

 

 

 

SECTION .0400 ‑ PURCHASE AND SALE OF METER IMPRINT

STAMPS

 

17 NCAC 04C .0401          AUTHORIZATION

17 NCAC 04C .0402          SETTING

17 NCAC 04C .0403          CREDIT SALES

17 NCAC 04C .0404          INSPECTION

 

History Note:        Authority G.S. 105-113.19; 105‑113.23;

105‑262;

Eff. February 1, 1976;

Amended Eff. October 30, 1981;

Repealed Eff. January 1, 1994.

 

 

 

17 NCAC 04C .0405          METER MACHINE MAINTENANCE

 

History Note:        Authority G.S. 105‑113.23; 105‑262;

Eff. June 11, 1977;

Repealed Eff. January 1, 1994.

 

 

 

 

SECTION .0500 ‑ AFFIXATION OF STAMPS AND IMPRINTS

 

17 NCAC 04C .0501          MANNER OF AFFIXING

17 NCAC 04C .0502          UNSTAMPED CIGARETTES

17 NCAC 04C .0503          RESPONSIBILITY OF PURCHASER

 

History Note:        Authority G.S. 105-113.9; 105-113.20;

105-113.22; 105‑113.27; 105‑262;

Eff. February 1, 1976;

Amended Eff. October 30, 1981; June 11, 1977;

Repealed Eff. January 1, 1994.

 

 

 

17 NCAC 04C .0504          OUT-OF-STATE SALES: NONRESIDENT

REGISTRATION

(a)  Sales of non-tax-paid cigarettes by a licensed North Carolina distributor to nonresident retail or wholesale dealers must be delivered by

the North Carolina distributor to the business location of the nonresident in

another state to qualify as an out-of-state sale exempted from the North Carolina cigarette excise tax. A nonresident dealer may accept delivery of cigarette

purchases in this State provided:

(1)           The nonresident dealer has no place of

business in North Carolina;

(2)           The nonresident dealer is purchasing

cigarettes for the purpose of resale outside of North Carolina;

(3)           The nonresident dealer is registered with

the Documents and Payments Processing Division, Tobacco Tax Unit of this

department as a nonresident retail and wholesale cigarette dealer; and

(4)           The nonresident dealer's cigarette

purchases must have affixed thereto by the North Carolina distributor the

taxpaid cigarette indicia of the state of the nonresident purchaser where

required.

(b)  Registration of the nonresident retail or wholesale

cigarette dealer is not required where the North Carolina resident cigarette

distributor delivers cigarette purchases of such nonresident dealer to the nonresident

business location outside this state.

(c)  Cigarettes sold and delivered outside this state must

have affixed thereto by the North Carolina cigarette distributor selling same

the taxpaid cigarette indicia of the state of the nonresident purchaser where

required.

(d) The North Carolina cigarette distributor shall be held

responsible for the accuracy and authenticity of the nonresident retail or

wholesale dealer's registration number. Verification may be made at any time by

inquiry to the Documents and Payments Processing Division, Tobacco Tax Unit of

this department. It is also the distributor's responsibility to keep and retain

in his records the executed certificate, Form B-A-52, for examination and audit

and the distributor shall be required to identify each invoice or bill of sale

made to such nonresident retail or wholesale cigarette dealer by noting thereon

his registration number.

 

History Note:        Authority G.S. 105-113.9; 105-262;

Eff. September 20, 1977;

Amended Eff. April 1, 2008; January 1, 1994; October 30,

1981.

 

17 NCAC 04C .0505          LIMITED TIME TO AFFIX TAXPAID INDICIA

(STAMPS AND IMPRINTS)

 

History Note:        Authority G.S. 105‑113.20; 105‑262;

Eff. October 1, 1991;

Repealed Eff. January 1, 1994.

 

 

 

 

SECTION .0600 ‑ CIGARETTE MANUFACTURER

 

17 NCAC 04C .0601          SALES TO LICENSED DISTRIBUTORS

 

History Note:        Authority G.S. 105‑113.10; 105‑113.37;

Eff. February 1, 1976;

Repealed Eff. October 30, 1981.

 

 

 

17 NCAC 04C .0602          INVOICE REQUIREMENT

(a)  Manufacturers are hereby required to forward the

secretary copies of all invoices, or equivalent information, of shipments of

cigarettes to distributors, wholesalers or retail dealers in this state on a

monthly basis, or at the time of the shipment.

(b)  An invoice is also required on gratis cigarettes

stamped by licensed distributors on behalf of the manufacturer.

 

History Note:        Authority G.S. 105‑113.10; 105‑262;

Eff. February 1, 1976;

Amended Eff. October 30, 1981; June 11, 1977.

 

 

 

17 ncac 04C .0603          TAX ON COMPLIMENTARY PACKS

 

History Note:        Authority G.S. 105‑113.5; 105‑113.10;

105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994;

Repealed Eff. July 1, 2000.

 

17 NCAC 04C .0604          MANUFACTURER ACTING AS DISTRIBUTOR

 

History Note:        Authority G.S. 105‑113.10; 105‑262;

Eff. February 1, 1976;

Repealed Eff. January 1, 1994.

 

 

 

 

SECTION .0700 - RECEIPT OF UNSTAMPED CIGARETTES

 

17 NCAC 04C .0701          DISTRIBUTOR RESPONSIBLE FOR TAX

 

History Note:        Authority G.S. 105‑113.10; 105‑113.5;

105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994;

Repealed Eff. August 1, 2003.

 

17 NCAC 04C .0702          INSURE CIGARETTE INVENTORY

A distributor is liable for the tax upon any non-tax-paid

cigarettes which are stolen or otherwise unaccounted for.

 

History Note:        Authority G.S. 105‑113.5; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994.

 

 

 

 

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.

 

 

 

17 ncac 04c .0802          free distribution by manufacturer

 

History Note:        Authority G.S. 105-113.5; 105-262;

Eff. February 1, 1976;

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

Repealed Eff. January 1, 2005.

 

SECTION .0900 ‑ REPORTS AND RECORDS REQUIRED OF

DISTRIBUTORS

 

17 NCAC 04C .0901          MONTHLY REPORT FOR RESIDENT

DISTRIBUTOR

(a)  Every licensed resident distributor shall file a report

(Form B‑A‑5) on or before the 20th day of each month.

(b)  Non-tax-paid cigarettes shipped, delivered or sold

outside the state during the month shall be reported on supplemental Form B‑A‑5,

Schedule I.

(c)  Cigarettes returned to the manufacturer during the

month shall be reported on supplemental Form B‑A‑5, Schedule J.

 

History Note:        Authority G.S. 105‑113.18; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994.

 

 

 

17 NCAC 04C .0902          MONTHLY REPORT FOR NONRESIDENT

DISTRIBUTOR

Every licensed nonresident distributor shall file a report

(Form B‑A‑6) on or before the 20th day of each month.

 

History Note:        Authority G.S. 105‑113.18; 105‑262;

Eff. February 1, 1976.

 

 

 

17 NCAC 04C .0903          RECORD REQUIREMENT

(a)  Each sale of cigarettes at wholesale, including cash

and credit transactions, and regardless of whether the sale is made to another

distributor, wholesale dealer, retail dealer, or is a transfer to a self‑owned

outlet or an agency or agent, shall be accompanied by a completed invoice

indicating the person to whom the cigarettes were sold, the address of the

purchaser, the date of the sale, the quantity sold, and the price charged.

(b)  If a distributor is also a retail dealer and sells

cigarettes directly to consumers, an invoice or a memorandum shall be prepared

showing the transfer of all cigarettes from the distributor to the retail

activity.

 

History Note:        Authority G.S. 105‑113.26; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994.

 

 

 

 

SECTION .1000 ‑ REFUND

 

17 NCAC 04C .1001          RETURN UNUSED STAMPS: NO TRANSFER

 

History Note:        Authority G.S. 105‑113.20; 105‑113.25;

105‑113.37;

Eff. February 1, 1976;

Repealed Eff. October 30, 1981.

 

 

 

17 NCAC 04C .1002          REFUNDS ONLY TO DISTRIBUTORS

Any spoiled packages of tax-paid cigarettes in the hands of

a retailer or wholesaler shall be returned to its respective distributors, as

refunds of the cigarette tax thereon will only be made to the distributor.

 

History Note:        Authority G.S. 105‑113.25; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994.

 

 

 

17 NCAC 04C .1003          MUTILATED BUT IDENTIFIABLE STAMPS

17 NCAC 04C .1004          OUT‑OF‑STATE SHIPMENTS: NO

REFUND

 

History Note:        Authority G.S. 105‑113.25; 105‑262;

Eff. February 1, 1976;

Amended Eff. June 11, 1977;

Repealed Eff. January 1, 1994.

 

 

 

 

17 NCAC 04C .1101          DEALERS ON TRAINS

Railroads that sell non-tax-paid cigarettes on trains

traveling in North Carolina must file a monthly return with the Department. 

The return must be filed on a form prescribed by the Secretary and must state

the amount of non-tax-paid cigarettes sold on the train in this State during

the month.  A return is due by the 20th of each month.  The tax on

cigarette sales reported on the return is due when the return is due.

 

History Note:        Authority G.S. 105‑113.6; 105‑262;

Eff. February 1, 1976;

Amended Eff. July 1, 2000; January 1, 1994;

 

17 NCAC 04C .1102          OCEAN‑GOING VESSELS

Non-tax-paid cigarettes may be sold for use or consumption

by or on ocean‑going vessels which leave the continental United States

and which ply the high seas in interstate or foreign commerce in the transport

of freight or passengers for hire exclusively when delivered to an officer or

agent of such vessel for use by or on such vessel accordingly.  Receipt for

delivery of such non-tax-paid cigarettes shall be signed for by an authorized

officer or agent of such vessel, and such signed  receipts shall be retained by

the distributor for a period of three years; also, a copy of same shall be

appended to the appropriate monthly tax report of the distributor.  Only North

Carolina tax-paid cigarettes may be sold by such vessels while in port or

within the territorial limits of this state.

 

History Note:        Authority G.S. 105‑113.6; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994.

 

 

 

 

SECTION .1200 ‑ CIGARETTE VENDING MACHINES

 

17 NCAC 04C .1201          IDENTIFICATION REQUIREMENT FOR EACH

MACHINE

(a)  Distributors, wholesalers or retail dealers owning,

leasing, furnishing or operating cigarette vending machines shall affix to each

such machine in a conspicuous place an identification sticker or device, which

shall show the name, address and telephone number of the operator owning and

placing such machine on location.  The owner of the business wherein such

machine is located shall also be responsible for seeing that such vending

machine is so identified.

(b)  No cigarette dispensing machine shall be allowed to

operate in this state that does not have affixed thereto the identification

required under G.S. 105-113.17.

 

History Note:        Authority G.S. 105‑113.17; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994.

 

 

 

17 NCAC 04C .1202          VENDING MACHINE OPERATORS

It shall be the duty of any person, firm or corporation

operating cigarette vending machines to have available for the department

information as to the location of any and all vending machines so operated by such

operator and make such information available at any time to the secretary or

his authorized agent.

 

History Note:        Authority G.S. 105‑65.1; 105‑113.18;

105‑262;

Eff. February 1, 1976;

Amended Eff. July 1, 1984.

 

 

 

17 NCAC 04C .1203          DISTRIBUTORS WITH VENDING MACHINES

 

History Note:        Authority G.S. 105‑113.18; 105‑250.1;

105‑113.37;

Eff. February 1, 1976;

Repealed Eff. July 1, 1984.

 

 

 

17 NCAC 04C .1204          DISPLAY STAMPED CIGARETTES IN MACHINES

 

History Note:        Authority G.S. 105‑113.22; 105‑113.28;

105‑262;

Eff. February 1, 1976;

Repealed Eff. January 1, 1994.

 

 

 

 

SECTION .1300 ‑ OTHER TOBACCO PRODUCTS LICENSES

 

17 NCAC 04C .1301          LICENSE REQUIREMENTS

(a)  Wholesale dealers and retail dealers, liable for excise

tax on other tobacco products under G.S. 105‑113.35, must obtain a

continuing Other Tobacco Products Tax License on forms prescribed by the

Secretary for each "place of business" as defined under G.S. 105‑113.36.

(b)  The application for license shall be signed and

verified by oath or affirmation by the owner, if a natural person, and in the

case of an association or partnership, by a member or partner thereof, and in

the case of a corporation, by an executive officer thereof or by any person

specifically authorized by the corporation to sign the application to which

shall be attached the written evidence of his authority.

(c)  The licensee shall notify the Secretary in writing of

any changes in the information previously provided on the license application

as such changes occur.

(d)  The licensee shall be responsible for notifying the

manufacturers from whom other tobacco products are purchased or received of the

other tobacco products license issued by the Secretary and of any subsequent

change relative to the license.

(e)  The license is not assignable, transferable, or

prorated.

 

History Note:        Authority G.S. 105‑113.35; 105‑113.36;

105‑262;

Eff. June 1, 1992;

Amended Eff. January 1, 1994.

 

 

 

 

SECTION .1400 ‑ MANUFACTURERS OF OTHER TOBACCO PRODUCTS

 

17 NCAC 04C .1401          INVOICE REQUIREMENT

When requested by the Secretary, manufacturers shall provide

copies of all invoices, or equivalent information, on shipments of other

tobacco products for sale in this State.

 

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

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1402          SALES TO LICENSED DEALERS ONLY

(a)  No manufacturer may make shipments of other tobacco

products directly to a person in this State not qualified and licensed as a

wholesale or retail dealer of other tobacco products.

(b)  Any manufacturer of other tobacco products shipping

such products to other wholesale or retail dealers who are licensed pursuant to

G.S. 105‑113.36 for payment of the other tobacco products excise tax is

relieved of the requirement of paying the tax.

 

History Note:        Authority G.S. 105‑113.35; 105‑113.37;

105‑262;

Eff. June 1, 1992;

Amended Eff. January 1, 1994.

 

 

 

17 NCAC 04C .1403          MANUFACTURERS ACTING AS RETAILER

A retail dealer who manufacturers other tobacco products and

sells those products to consumers in this State is liable for the tax except

for those transactions in other tobacco products which meet exemption from the

tax under G.S. 105‑113.35.

 

History Note:        Authority G.S. 105‑113.35; 105‑262;

Eff. June 1, 1992.

 

 

 

 

SECTION .1500 ‑ LIABILITY FOR OTHER TOBACCO PRODUCTS

EXCISE TAX

 

17 NCAC 04C .1501          PRIMARY LIABILITY

(a)  The wholesale dealer or retail dealer who first

acquires or handles other tobacco products in this State is liable for payment

of the excise tax.

(b)  The wholesale dealer or retail dealer who brings other

tobacco products into this State is liable for payment of the excise tax. 

Examples are:

(1)           The out‑of‑state wholesale

dealer or retail dealer who brings such products into the State on its own truck.

(2)           The in‑state wholesale dealer or

retail dealer who brings such products into the State on its own truck.

(c)  The wholesale dealer or retail dealer who first

receives or handles the other tobacco products in this State is liable for

payment of the excise tax.  Examples are:

(1)           The wholesale dealer or retail dealer who

is the original consignee of other tobacco products manufactured or produced

outside this State.

(2)           The in‑state wholesale dealer or

retail dealer who first receives such products from outside the State by common

carrier or contract carrier.

 

History Note:        Authority G.S. 105‑113.35; 105‑262;

Eff. June 1, 1992;

Amended Eff. January 1, 1994.

 

 

 

 

SECTION .1600 ‑ MILITARY EXEMPT SALES

 

17 NCAC 04C .1601          EXEMPT SALES LIMITED TO ARMED FORCES

AND THEIR DEPENDENTS

Other tobacco products sold to the Federal Government and

its instrumentalities, such as the Armed Forces Exchange Services, are exempt

from the excise tax.  However, sales of other tobacco products by such services

MUST 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.

 

History Note:        Authority G.S. 105‑113.35; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1602          DELIVERIES TO ARMED FORCES EXCHANGE

SERVICES

Whenever tax exempt deliveries of other tobacco products are

made by dealers to armed forces exchange services, the dealer must require a

duly receipted invoice or copy thereof from the governmental agent designated

to accept delivery.

 

History Note:        Authority G.S. 105‑113.35; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1603          SALES OF OTHER TOBACCO PRODUCTS: BY

OTHERS: NOT EXEMPT

If a person engages in the sale of any other tobacco

products 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 products from the excise tax.  In

such instances, such sales would not be made by the Federal Government or an instrumentality

thereof.  Instead, all such sales are subject to the excise tax.

 

History Note:        Authority G.S. 105‑113.35; 105‑262;

Eff. June 1, 1992.

 

 

 

 

SECTION .1700 ‑ DESIGNATION OF EXEMPT SALES

 

17 NCAC 04C .1701          MUST SELL AS DESIGNATED

Once other tobacco products are designated as tax exempt

under G.S. 105‑113.35, they must be sold in tax exempt transactions.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1702          NO DELAYED OR DEFERRED TAX PAYMENT

ALLOWED

No wholesale dealer or retail dealer or customer of a

wholesaler may delay payment of the tax due on other tobacco products by

failing to pay tax on a sale that is not a designated sale or by overstating

the quantity of other tobacco products that will be resold in an exempt

transaction.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1703          PRIOR WRITTEN NOTIFICATION REQUIRED

FROM NC CUSTOMERS

A wholesale dealer may sell other tobacco products

nontaxpaid to a customer who has tax exempt sales provided the customer has

notified the wholesale dealer in writing that the customer intends to resell

the items in exempt transactions.  Where prior written notification is not

provided, the wholesale dealer must remit applicable tax.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1704          INVOICING REQUIREMENTS

The wholesale dealer must separately invoice and indicate

the other tobacco products designated for exempt transactions.  For example,

sales designated for customers with other tobacco product sales outside North Carolina

must be invoiced to read, "Designated for Sale Outside North

Carolina".

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1705          REPORTING REQUIREMENTS

The wholesale dealer selling the designated other tobacco

products must file a monthly report using Form B-A-101 within 20 days after the

end of the month covered by the report.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992;

Amended Eff. January 1, 1994.

 

 

 

17 NCAC 04C .1706          ORIGINAL SELLER NOT LIABLE FOR TAX

The wholesale dealer, who relies on the prior written exempt

intent of its customer, is not required to pay tax on the designated sales when

filing a monthly report.  However, the wholesaler must pay the tax due on all

other taxable sales.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1707          PENALTIES FOR IMPROPER HANDLING OF

DESIGNATED PRODUCT

The tax liability plus penalties and interest will be held

against the wholesaler's customer who sells other tobacco products designated

exempt in a taxable transaction.  Customers violating designation procedures

are not entitled to the timely payment discount.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992;

Amended Eff. January 1, 1994.

 

 

 

 

17 NCAC 04C .1801          MONTHLY RETURN REQUIREMENTS

A tobacco products wholesale dealer or retail dealer

licensed under G.S. 105-113.36 must file a monthly return in accordance with

G.S. 105-113.37.  A return must be filed each month even if no tax is due for that

month.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992;

Amended Eff. July 1, 2000.

 

17 NCAC 04C .1802          INVOICING REQUIREMENTS

(a)  Sales invoices of wholesale dealers, whether resident

or nonresident, liable for the tax shall indicate payment of the excise tax on

other tobacco products by the wording "North Carolina Other Tobacco

Products Tax Paid".

(b)  All sales invoices of nonresident wholesale dealers

shall show the point of origin and mode of transportation for all shipments of

other tobacco products into this State.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

17 NCAC 04C .1803          RECORDS REQUIREMENTS

Every retail dealer and every wholesale dealer and their

customers must keep records of inventories, purchases, and sales of other

tobacco products for at least three years.  These records and inventories must

be maintained separately in such a manner as can be inspected and audited by

the Secretary or duly authorized representative at any time without having to

go through and separate or segregate all sales of the taxpayer in order to

arrive at the amount of exempt sales or inventories.

 

History Note:        Authority G.S. 105‑113.37; 105‑262;

Eff. June 1, 1992.

 

 

 

 

SECTION .1900 ‑ OTHER TOBACCO PRODUCTS VENDING MACHINES

 

17 NCAC 04C .1901          IDENTIFICATION AND LOCATION REQUIRED

(a)  No other tobacco products dispensing machine shall be

allowed to operate in this State that does not have affixed thereto the identification

required under the Tobacco Products Tax Article.

(b)  Wholesale dealers or retail dealers owning, leasing,

furnishing or operating other tobacco products vending machines shall affix to

each such machine in a conspicuous place an identification sticker or device,

which shall show the name, address and telephone number of the operator owning

and placing such machine on location.  The owner of the business wherein such

machine is located shall also be responsible for seeing that such vending machine

is so identified.

(c)  It shall be the duty of any person, firm or corporation

operating other tobacco products vending machines to have available for the

Department information as to the location of any and all vending machines so

operated by such operator, and make such information available at any time to

the Secretary or his authorized agent.

 

History Note:        Authority G.S. 105‑65.1; 105‑113.17;

105‑262;

Eff. June 1, 1992.