SUBCHAPTER 7B ‑ STATE SALES AND USE TAX
SECTION .0100 ‑ GENERAL PROVISIONS
17 NCAC 07B .0101 IMPOSITION OF AND LIABILITY FOR
COLLECTING AND REMITTING TAX
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑164.6; 105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 1992; October 1, 1991; October 1,
1990; May 1, 1990;
Repealed Eff. October 1, 1993.
17 NCAC 07B .0102 DEFINITIONS
17 NCAC 07B .0103 LICENSES REQUIRED
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.5; 105‑262;
Eff. February 1, 1976;
Amended Eff. March 15, 1980;
Repealed Eff. January 1, 1982.
17 NCAC 07B .0104 RETURNS
(a) General -- G.S. 105-164.16 establishes the filing
frequency of sales and use tax returns and the content of the returns. G.S.
105-164.4(c) requires a retailer and a wholesale merchant to register with the
Department and obtain a certificate of registration. G.S. 105-164.6 requires a
retailer who delivers property for storage, use, or consumption but does not
have a place of business in this State to register with the Department and
obtain a certificate of registration. A person who is engaged in business, is
not otherwise required to file a sales and use tax return, and, on two or more
occasions within a twelve-month period, purchases property subject to use tax
must register with the Department and begin filing sales and use tax returns.
A person who is engaged in business, is not otherwise required to file a sales
and use tax return, and purchases property subject to use tax only once in a
twelve-month period must file a return and pay the tax due within 20 days after
the end of the month in which the purchase was made.
(b) Schedules. -- A retailer who files a return that
reports tax payable by more than one location in the State must attach two
schedules to the return. One schedule must list the amount of State tax due
for each location in the State and the other must list the amount of local tax
due for each county.
(c) No Sales or Purchases By Business -- A retailer who
does not make any sales during a reporting period must file a return for that
period and enter 0.00 (zero) on the Total Due line on the return. Similarly, a
person who is not a retailer but is engaged in business, purchases tangible
personal property for the business that is subject to use tax, and does not
make any taxable purchases during a reporting period must file a return for
that period and enter 0.00 (zero) on the Total Due line on the return.
(d) Seasonal Business. -- A retailer who engages in
business for six or fewer consecutive months in each year may register as a
seasonal filer and indicate the months in which the retailer engages in
business. A retailer who is registered as a seasonal filer is not required to
file a return for an off-season reporting period in which the retailer did not
engage in business.
(e) Wholesale Merchant -- A person who engages exclusively
in the business of making wholesale sales is not required to file a return. A
person who, on two or more occasions within a twelve-month period, either makes
taxable sales to users, consumers, or nonregistered merchants or makes
purchases subject to use tax is not engaged exclusively in the business of
making wholesale sales and must begin filing sales and use tax returns. A
wholesale merchant who is not required to file a sales and use tax return and
who, on only one occasion within a twelve-month period, either makes taxable
sales to users, consumers, or nonregistered merchants or makes purchases
subject to use tax must file a return and pay the tax due within 20 days after
the end of the month in which the sale or purchase was made.
(f) Non-Business Use Tax -- An individual who is not
engaged in the business of selling tangible personal property at retail and who
purchases for a non-business purpose tangible personal property that is subject
to use tax must report the tax due on an annual basis. An individual who is
required to file an individual income tax return must pay the use tax with the
individual income tax return for that year. An individual who is not required
to file an individual income tax return must report the tax due on Form E-554.
Form E-554 is due annually by the date set under G.S. 105-164.16.
History Note: Authority G.S. 105-164.3; 105‑164.16;
105‑262; 105-269.14;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; August 1, 2002; July 1, 2000;
July 1, 1999; August 1, 1998;
October 1, 1993; October 1, 1991; October 1, 1990; April
1, 1986.
17 NCAC 07B .0105 MEASURE OF TAX DUE
(a) When the customer purchases more than one article at
one trading period, the applicable rate of tax may be applied to each article
purchased or to the total charge for all articles purchased. Those businesses
having cash registers at each counter or in each department shall collect a tax
equal to the tax due on the total charge for tangible personal property
purchased by a customer at one trading period without leaving the place of
business.
(b) The tax computation must be computed to the third decimal
place. The amount of tax shall be rounded up whenever the third decimal place
is greater than four.
History Note: Authority G.S. 105‑164.11; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1990.
17 NCAC 07B .0106 CERTIFICATES OF EXEMPTION: SALES FOR
RESALE
(a) A purchaser of tangible personal property who is
properly registered with the Sales and Use Tax Division of the North Carolina
Department of Revenue or in a taxing jurisdiction outside this State and is
engaged in the business of selling tangible personal property at retail or
wholesale and makes purchases of tangible personal property for the purpose of
resale shall furnish to his vendors as their authority for not collecting the
tax, either:
(1) Streamlined Sales Tax Agreement Certificate
of Exemption, Form E-595E, or
(2) other evidence in writing adequate to
support the conclusion that he is registered with the Department of Revenue or
in a taxing jurisdiction outside this State for sales and use tax purposes and
that the property is being purchased for the purpose of resale.
Such certificates or other written evidence shall be
completed in duplicate and a copy retained by both the vendor and the vendee in
their files. In the absence of such certificates or other adequate written
evidence, vendors selling taxable tangible personal property to wholesale and
retail merchants shall be deemed to be making retail sales and shall be liable
for collecting and paying the tax thereon at the applicable rate.
(b) Certificates of exemption being issued for the purpose
of resale shall not be used to purchase tangible personal property which is to
be used or consumed by the purchaser. The Secretary may revoke the license of
any licensed merchant who makes such use of the certificate of exemption.
Vendors shall charge the applicable rate of tax on sales to registered
merchants when the property sold is for use by the purchaser and not for
resale. Merchants purchasing tangible personal property for resale on a
regular basis from a vendor shall only be required to furnish one certificate
of exemption or other written evidence to the vendor for such purchases.
Whenever a person makes purchases of tangible personal property for resale and
the property is not generally and ordinarily the type of property the purchaser
will resell, the vendor shall require certificates of exemption or other
written evidence in connection with individual purchases supporting that the
property is being purchased for resale.
(c) Persons who issue certificates of exemption to vendors
to obtain property without payment of tax when due are subject to assessment of
the penalties set out in G.S. 105‑236(5) and (5a) and may be guilty of a
Class H felony. The penalty for misuse of a certificate of exemption is
applicable only to a purchaser. The act of executing a certificate of
exemption by a vendee and furnishing the document to a vendor does not
constitute a use or misuse of the certificate. The actual use or misuse occurs
when a purchase is made and the vendor, relying on the certificate furnished by
the vendee, does not charge sales or use tax thereon on the basis that the sale
is a "wholesale sale" as defined in G.S. 105‑164.3(24). A
single purchase is considered to be the tangible personal property purchased at
one time as reflected on the bill of sale. The penalty shall be applied only
once to each invoice or bill of sale for which a misuse of the certificate has
occurred. This penalty is subject to the discretionary authority of the
Secretary of Revenue pursuant to G.S. 105‑237.
(d) The Secretary may extend to a registered merchant
written permission to make purchases for his own use pursuant to the
certificate of exemption and assume liability for payment of the applicable tax
to the Department when the character of the business of the purchaser is such
that it would impose undue hardship upon the vendor and vendee to determine the
transactions upon which the vendor would ordinarily be required to impose the
tax. The purchaser shall furnish written evidence of such assumption of
liability to the purchaser's vendors; the vendors must retain the documentation
in their files.
(e) This rule applies to sales to resident and nonresident
retail or wholesale merchants. Reference is made to 17 NCAC 7B .2301 for the
treatment of sales to nonresident retail or wholesale merchants.
History Note: Authority G.S. 105‑164.28; 105‑236;
105‑262;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; October 1, 1993; February 1,
1988; May 11, 1979.
17 NCAC 07B .0107 RECORDS REQUIRED TO BE KEPT
History Note: Authority G.S. 105‑164.22; 105‑164.23;
105‑164.25; 105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .0108 TRADE DISCOUNTS AND CASH DISCOUNTS
(a) Trade. -- Trade discounts and bargaining discounts are
not a part of the sales price on which sales tax is computed when the sales
price is reduced by the discounts before the computation of tax. A trade
discount is a price reduction afforded a particular customer or customers in a
particular trade or group without reservation at the time the sale is being
negotiated. A bargaining discount is a price reduction extended to a customer
at the time the sale is being negotiated as a result of bargaining between the
customer and the seller.
(b) Cash. -- A cash discount is a reduction in the sales
price, and the tax must be computed and paid on the sales price after allowance
for the cash discount. Generally, a cash discount is a deduction from the
sales price allowed for prompt payment of the bill. Likewise, cash discounts
are not a part of the purchase price on which tax is due. A person who
purchases tangible personal property for use or consumption in this State is
liable for remitting the tax due on the purchase price after allowance for the
cash discount.
(c) Over-allowance. -- The amount of an over‑allowance
to a purchaser for an item taken in trade as a credit or part payment on the
sale of a new article is not a reduction in the sales price of the new
article. The tax must be computed and paid on the full gross sales price of
the new article without any deduction on account of the trade‑in credit
or allowance.
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976.
Amended Eff. August 1, 2002.
17 NCAC 07B .0109 APPLICATION OF TAX TO FISH BAIT
Sales of bloodworms or crickets to users other than
commercial fishermen for bait are subject to the applicable statutory state and
any applicable local sales or use tax except when such products are sold in
their original or unmanufactured state by the producer in his capacity as the
producer. Sales of shrimp or seafood to users other than commercial fishermen
for bait are subject to only the two percent local sales or use tax except when
sold in their original or unmanufactured state by the producer in his capacity
as the producer.
History Note: Authority G.S. 105‑164.4;
105-164.13B; 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.
17 NCAC 07B .0110 CHARTER BOAT OPERATORS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 3, 1984.
17 NCAC 07B .0111 STAMPS, COINS, ETC.
Persons engaged in the business of selling collectible
stamps, coins and related items to collectors must register with the Department
of Revenue for the purpose of collecting and remitting the applicable statutory
state and local sales or use tax on such sales. Sales of stamps through
vending machines or in any other manner for use as United States postal fees
are exempt from the tax. Casual or isolated sales of coins and stamps by
individuals who are not engaged in the business are exempt from tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
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; March 1, 1984.
17 NCAC 07B .0112 SALES OF HOUSEHOLD GOODS
Occasional sales of household goods on which the sales tax
has been paid are exempt from the tax when sold by the owner in his capacity as
owner and not in the capacity of a retail merchant. Such sales are deemed to
be casual or isolated sales by persons not holding themselves out as engaged in
business.
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0113 AUCTIONEERS AND AUCTION SALES
(a) Auctioneers who buy or acquire tangible personal
property by consignment or otherwise which they sell at retail on their own
account shall collect and remit the tax due on such sales and must have a Certificate
of Registration. This includes persons who operate auction barns or similar
places of business where they regularly receive merchandise on a consignment or
some other basis and sell such items at auction.
(b) Auctioneers are not liable for collecting and remitting
sales tax when they sell tangible personal property for the owners strictly in
the capacity of an auctioneer and charge or receive a percentage of the sales
price or other fee as compensation for their services. In these type transactions,
the auctioneer is acting as agent for the owner of the property. Examples of
auction sales on which no sales tax is due are estate sales of household
possessions and sales of farm machinery and equipment for a farmer going out of
business when such sales are conducted at the property owner's home or farm.
(c) If a retail or wholesale business conducts an auction
sale as, for example, when it is going out of business, it shall collect and
remit sales tax on any retail sales of the inventory of goods which it held for
resale. The tax base is the sales price of the item before deducting the
compensation paid to the auctioneer. Sales of store fixtures and equipment
held for use in operating the business are exempt from sales tax as occasional
or isolated sales by someone not engaged in the business of selling that kind
of property.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; October 1, 1993.
17 NCAC 07B .0114 BLIND MERCHANTS
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .0115 RESEARCH SERVICES
Sales of scientific or research equipment to independent
contract research organizations for use in performing research services for
clients are subject to the applicable statutory state and local sales or use
tax. If a contract research organization qualifies under G.S.
105-187.51B(a)(2), then research equipment that meets the requirements of that
subsection are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105-164.13; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; April 1, 2006; October 1,
1993; October 1, 1991.
17 NCAC 07B .0116 COMPUTER SOFTWARE
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991; May 1, 1985; December 1,
1982; January 1, 1982;
Repealed Eff. October 1, 1993.
17 NCAC 07B .0117 PROPERTY TRANSFERS BETWEEN DIVISIONS
Firms having divisions, both within and without North
Carolina, are liable for remitting the applicable rate of tax on any purchases
of tangible personal property for use in North Carolina, including any property
purchased outside North Carolina and imported into North Carolina for use in
this state. No tax will be due with respect to those transfers of property by
an out‑of‑state firm to its North Carolina divisions for their use
when the property was originally purchased for use outside this state by the
out‑of‑state firm and was in fact used by that firm outside this
state for a substantial period of time.
History Note: Authority G.S. 105‑164.6; 105‑262;
Eff. February 1, 1976;
Amended Eff. December 1, 1997; October 1, 1993.
17 NCAC 07B .0118 CHANGE IN OWNERSHIP
When a partnership dissolves and one or more of the former
partners starts a new business on an individual basis, each new business must
complete an application for registration. When a partnership or proprietorship
is succeeded by a new business entity, the new entity must complete an
application for registration.
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; April 1, 1997.
17 NCAC 07B .0119 INTEREST ON ASSESSMENTS
History Note: Authority G.S. 105‑164.16; 105‑262;
Eff. February 1, 1976;
Amended Eff. January 1, 1982;
Repealed Eff. October 1, 1993.
17 NCAC 07B .0120 TRANSFEREE LIABILITY
The Secretary of Revenue may not assert a transferee
liability against the purchaser of a business for sales and use taxes incurred
by anyone further removed along the chain of registration than the purchaser's immediate
predecessor, unless the Department can trace its lien against specific property
down through the ensuing chain of title.
History Note: Authority G.S. 105‑164.38; 105‑262;
Eff. February 1, 1976;
Amended Eff. January 1, 1982.
17 NCAC 07B .0121 BANKRUPT'S LIABILITY
(a) A discharge under 11 U.S.C. section 727, 1141, 1228(a),
1228(b), or 1328(b) does not relieve an individual debtor in bankruptcy from
liability for payment of pre‑petition sales taxes. Furthermore, it does
not relieve and individual debtor from liability for payment of pre‑petition
use taxes:
(1) on pre‑petition transactions for
which a return is last due, including any extension, after three years before
the petition date;
(2) on transactions with respect to which a
return:
(A) was not filed; or
(B) was filed after the due date, including any
extension, and after two years before the petition date; or
(3) with respect to which the debtor made a
fraudulent return or willfully attempted in any manner to evade or defeat such
tax.
(b) Associated penalties and post‑petition interest
also are not discharged on such sales and use taxes imposed with respect to
transactions occurring within three years prior to the petition date.
(c) An individual debtor's discharge under 11 U.S.C.
section 1328(a) or a corporate debtor's discharge under 11 U.S.C. section 1141
releases the debtor from liability for payment of pre‑petition sales and
use taxes, penalties and interest. The tax liability is replaced by the
debtor's liability under the repayment plan.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264; 11 U.S.C. 532;
Eff. February 1, 1976;
Amended Eff. October 1, 1993.
17 NCAC 07B .0122 COUPONS
(a) Sales of coupons and coupon booklets to advertising
agencies, promoters and other users or consumers for use in advertising
programs aimed at the promotion of sales by retail merchants are subject to
sales or use tax. When coupons issued pursuant to such programs are
subsequently taken by retail merchants from their customers in connection with
sales of their products, the retail merchant shall charge and remit sales tax
on the net amount charged for the products after deduction of any credit by
reason of the coupons. Such coupons are considered to be for the purpose of
advertising discounts or special sales prices, such as the sale of two items
for the price of one item, and are not considered to be a part of the sales price
upon which the sales tax is due.
(b) When retailers issue coupons relating to products they
sell and later receive the coupons from customers in connection with sales of
their products, the retailer shall charge and remit sales tax on the net amount
charged for the products after deduction of any credit by reason of the
coupons. Coupons issued by retailers are considered to be for the purpose of
advertising discounts or reductions in the suggested sales price of products
and are not considered to be a part of the sales price upon which sales tax is
due.
(c) When manufacturers issue coupons relating to their
products and the coupons are subsequently taken by retailers from their
customers in connection with sales of the manufacturers' products, the retailer
shall charge and remit sales tax on the total sales price of the products
before deduction of any credit or issuance of any refund by reason of any
coupons. Manufacturers' coupons taken by retailers from their customers
constitute payment, or part payment, of the sales price of the property upon
which sales tax is due. Any amounts paid by the manufacturer to the retailer
for the value of the coupons or for handling them are not subject to sales tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264;
Eff. September 14, 1977;
Amended Eff. October 1, 1993; June 1, 1984.
17 NCAC 07B .0123 COMMERCIAL FISHERMEN – CERTIFICATE OF
EXEMPTION
(a) Certificate. - A commercial fisherman may complete a
Streamlined Sales Tax Agreement Certificate of Exemption, form E-595E. The
certificate authorizes a retailer or a wholesale merchant to whom it is
presented to sell property that is exempt from sales and use tax under G.S.
105-164.13(9) to the commercial fisherman without collecting sales and use
tax. A retailer or a wholesale merchant who does not collect tax on an item
sold to a commercial fisherman and does not have a certificate to support the
tax-free sale must have other written evidence that supports the tax-free sale.
(b) Items Covered by Certificate. - The items listed in
G.S. 105-164.13(9) can be purchased under a certificate of exemption if the
items are to be used principally in commercial fishing operations. Commercial
fishing operations include charter boat and head boat operations that charge
people to take them fishing. Items that may be exempt under G.S. 105-164.13(9)
and, therefore, purchased under a certificate include paint brushes, paint
rollers, acetylene, oxygen, funnels, sanding discs, welding rods, saw blades,
drill bits, foul weather gear, gloves, and life vests. These items are exempt
if they are for use principally in commercial fishing operations.
(c) Items Not Covered By Certificate. - Only items that are
described in G.S. 105-164.13(9) and are for use principally in commercial
fishing operations are exempt from tax and therefore eligible to be purchased
under a certificate. Items for personal use by a commercial fisherman are not
exempt under G.S. 105-164.13(9) and, therefore, may not be purchased under a
certificate. Personal items include tableware, toothpaste, soap, food, and
clothing. Items for use in catching marine mammals, fish, shellfish, and
crustaceans for recreation or personal use or consumption are not exempt and
may not be purchased under a certificate.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. July 5, 1980;
Amended Eff. April 1, 2006; July 1, 2000; August 1, 1998;
November 1, 1995; April 1, 1995; October 1, 1993; July 1, 1989.
17 NCAC 07B .0124 ERRONEOUS INFORMATION
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. January 1, 1982;
Amended Eff. October 1, 1993; October 1, 1990;
Repealed Eff. July 1, 2000.
17 NCAC 07B .0125 FLEA MARKETS
History Note: Authority G.S. 105‑164.3(1); 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1986;
Amended Eff. October 1, 1993; June 1, 1992;
Repealed Eff. July 1, 2000.
17 NCAC 07B .0126 HOLY BIBLES
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. October 1, 1991;
Repealed Eff. October 1, 1993.
SECTION .0200 ‑ GENERAL APPLICATION OF LAW TO
MANUFACTURING AND INDUSTRIAL PROCESSING
17 NCAC 07B .0201 TAX ON MANUFACTURING AND PROCESSING
MACHINERY
17 NCAC 07B .0202 CLASSIFICATION OF MANUFACTURING
ACTIVITIES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; June 1, 1992; October 1,
1991; May 11, 1979; September 30, 1977;
Repealed Eff. July 1, 2006.
17 NCAC 07B .0203 EXEMPT SALES TO MANUFACTURERS
17 NCAC 07B .0204 FUEL
17 NCAC 07B .0205 BUILDINGS AND STRUCTURES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105.262;
Eff. February 1, 1976;
Amended Eff. May 11, 1979;
Repealed Eff. January 1, 1982.
17 NCAC 07B .0206 SALES BY MANUFACTURERS
17 NCAC 07B .0207 PURCHASES BY MANUFACTURERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑164.28; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; July 1, 1999; August 1, 1998; October
1, 1993; March 1, 1993; August 1, 1988; November 1, 1982;
Repealed Eff. July 1, 2006.
SECTION .0300 ‑ SPECIFIC TANGIBLE PERSONALTY CLASSIFIED
FOR USE BY INDUSTRIAL USERS
17 NCAC 07B .0301 MILL MACHINERY
17 NCAC 07B .0302 ITEMS NOT MILL MACHINERY
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; June 1, 1992; October 1,
1991; January 3, 1984;
Repealed Eff. July 1, 2006.
SECTION .0400 ‑ SPECIFIC INDUSTRIES
17 NCAC 07B .0401 SPECIFIC INDUSTRIES: CLASSIFICATIONS
17 NCAC 07B .0402 FURNITURE FACTORIES
17 NCAC 07B .0403 BOTTLING PLANTS
17 NCAC 07B .0404 ELECTRIC POWER COMPANIES
17 NCAC 07B .0405 MINING AND QUARRYING
17 NCAC 07B .0406 OTHER MILLS AND PROCESSORS
17 NCAC 07B .0407 DAIRIES AND CREAMERIES
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑164.13; 105-164.21A; 105‑262; 105‑264;
Eff. February 1, 1976;
Amended Eff. August 1, 1998; October 1, 1993; October 1,
1991; August 1, 1988; June 1, 1985; June 1, 1984; May 11, 1979; September 30,
1977;
Repealed Eff. July 1, 2006.
SECTION .0500 ‑ EXEMPT SALES TO MANUFACTURERS
17 NCAC 07B .0501 IN GENERAL
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Repealed Eff. October 1, 1993.
17 NCAC 07B .0502 PACKAGING MATERIALS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991;
Repealed Eff. July 1, 2006.
17 NCAC 07B .0503 INGREDIENTS
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Repealed Eff. November 1, 1982.
SECTION .0600 ‑ SALES OF MILL MACHINERY AND ACCESSORIES
17 NCAC 07B .0601 IN GENERAL
17 NCAC 07B .0602 PACKAGING MACHINERY
17 NCAC 07B .0603 TAPE DISPENSING MACHINES
17 NCAC 07B .0604 STRAPPING MACHINE
17 NCAC 07B .0605 MIXING TANKS
17 NCAC 07B .0606 POLLUTION ABATEMENT EQUIPMENT
17 NCAC 07B .0607 GAS STACKS
17 NCAC 07B .0608 PRINTING PLATES
17 NCAC 07B .0609 POLLUTION ABATEMENT CHEMICALS
17 NCAC 07B .0610 WATER PURIFICATION EQUIPMENT AND
CHEMICALS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; April 1,
1986; July 5, 1980; May 11, 1979; September 30, 1977;
Repealed Eff. July 1, 2006.
17 NCAC 07B .0611 MOLDS AND FORMS
17 NCAC 07B .0612 RAGS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. November 1, 1982.
17 NCAC 07B .0613 CHEMICALS FOR BOILERS
17 NCAC 07B .0614 IDENTIFICATION AND INSTRUCTION TICKETS
17 NCAC 07B .0615 INSULATION MATERIALS: MANUFACTURERS
17 NCAC 07B .0616 SANDBLAST SAND
17 NCAC 07B .0617 LIFT TRUCKS
17 NCAC 07B .0618 SINGLE ARTICLE APPLICATION: SYSTEM
17 NCAC 07B .0619 WELDING RODS
17 NCAC 07B .0620 COMBUSTIBLE SOOT REMOVERS
17 NCAC 07B .0621 ELECTRIC LIGHT BULBS
17 NCAC 07B .0622 PRINTING PRESSES
17 NCAC 07B .0623 CALCIUM CHLORIDE AND SALT
17 NCAC 07B .0624 ELEVATORS
17 NCAC 07B .0625 INSULATION MATERIALS: CONTRACTORS
17 NCAC 07B .0626 PAPER STOCK
17 NCAC 07B .0627 HANG TAGS AND LABELS
17 NCAC 07B .0628 STOCK CONTROL CARDS
17 NCAC 07B .0629 OFFICE SUPPLIES: STENCILS
17 NCAC 07B .0630 SCALES
17 NCAC 07B .0631 SEWAGE TREATMENT PLANTS
17 NCAC 07B .0632 GRAIN ELEVATORS
17 NCAC 07B .0633 ANIMALS AND ANIMAL CAGES
17 NCAC 07B .0634 ELECTRIC POWER DRIVE
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; 105‑-264;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; July 1,
1984; July 5, 1980; May 11, 1979; September 30, 1977; September 14, 1977;
Repealed Eff. July 1, 2006.
SECTION .0700 ‑ SPECIFIC INDUSTRY PURCHASES
17 NCAC 07B .0701 IN GENERAL
17 NCAC 07B .0702 FURNITURE FACTORIES
17 NCAC 07B .0703 BOTTLING PLANTS
17 NCAC 07B .0704 MINING AND QUARRYING
17 NCAC 07B .0705 TEXTILE MILLS
17 NCAC 07B .0706 SAWMILLS
17 NCAC 07B .0707 CONCRETE MANUFACTURERS
17 NCAC 07B .0708 ICE MANUFACTURERS
17 NCAC 07B .0709 PURIFICATION PLANTS
17 NCAC 07B .0710 FOOD PROCESSORS
17 NCAC 07B .0711 MODULAR HOME MANUFACTURERS
17 NCAC 07B .0712 MONUMENT MANUFACTURERS
17 NCAC 07B .0713 ELECTROPLATING INDUSTRIES
17 NCAC 07B .0714 REFRACTORY MANUFACTURERS
17 NCAC 07B .0715 HATCHERIES
17 NCAC 07B .0716 STATE AGENCIES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; 105‑264;
Eff. February 1, 1976;
Amended Eff. April 1, 1995; October 1, 1993; June 1,
1992; October 1, 1991; October 1, 1990; March 1, 1984; January 1, 1982; July 5,
1980; May 11, 1979; September 30, 1977;
Repealed Eff. July 1, 2006.
17 NCAC 07B .0801 ADJUSTMENTS AND REPLACEMENTS
(a) Whenever any taxable article is returned to the
manufacturer for adjustment, replacement, or exchange under a guaranty as to
its quality or service and pursuant thereto a new article is given free, or at
a reduced price, the sales or use tax shall be computed on the actual amount,
if any, paid to the manufacturer for the new article.
(b) Dealers using tangible personal property to fulfill
sales warranties or guaranty obligations to a customer without cost to the
customer are not liable for the applicable statutory state and local sales or
use tax on the dealer's cost price of all tangible personal property so used.
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.
17 NCAC 07B .0802 MADE TO ORDER AND INSTALLATION SALES:
GENERALLY
(a) Sales of fabricated articles of tangible personal
property to users or consumers are subject to the sales or use tax unless
specifically exempt by statute. Examples of such items are aluminum awnings,
venetian blinds, draperies, seat covers, slip covers, storm doors, storm
windows and any other fabricated articles. When the sale is made by the person
who fabricated the article from materials which he furnished, either directly
or indirectly, the total sales price, including the charge for labor performed
and services rendered in producing such article, is subject to the tax. All
persons making such sales must register with the Department and collect and
remit all tax due.
(b) Sales to users or consumers of tangible personal
property, including articles fabricated by the vendor, which the vendor
contracts to install are subject to the sales or use tax and persons making
such sales must register with the Department and collect and remit all tax
due. If the vendor makes a charge for installing articles of tangible personal
property which he sells, the charge for installation will not be subject to tax
provided it is in addition to the sales price of the property and is stated
separately on the customer's invoice and in the vendor's records. If the
installation charge is not separately stated, the entire amount will be
taxable.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0803 CABINETMAKERS
(a) Cabinetmakers who fabricate and sell cabinets to
homeowners, contractors and others for use in this state are liable for
collecting and remitting the applicable statutory state and local sales or use
tax on the sales price of such property. Any cost of labor or services
rendered in installing or affixing such property when separately stated on
sales invoices given to customers at the time of sale shall not be included as
a part of the sales price.
(b) Cabinetmakers who, pursuant to a construction or
performance‑type contract with or for the benefit of the owner of real
property, install or affix tangible personal property, including cabinets, in
or to real property are liable for tax on the cost or purchase price of materials
and other such property used in performing the contract.
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; October 1, 1988.
17 NCAC 07B .0804 FABRICATED ARTICLES
When a vendor of materials contracts to furnish fabricated
articles to its customers and subcontracts such fabrication, the entire charge
is taxable notwithstanding that the fabrication labor may be separately charged
to and collected from the vendor's customer and in turn remitted to the
vendor's subcontractor.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0805 SIGN FABRICATING AND PAINTING
(a) Retail sales of electrical, neon or other made‑to‑order
signs are subject to the applicable statutory state and local sales or use
tax. If the vendor makes a separate charge for installing signs which he makes
and sells, the charge for installation shall not be subject to tax provided it
is in addition to the sales price of the sign and is separately stated on the
customer's invoice and in the vendor's records. If the vendor enters into a
separate contract to furnish maintenance or repair service subsequent to the
sale of the sign, charges for such services are not subject to the sales or use
tax, but receipts from the sale of all tangible personal property used in
making the repairs are taxable.
(b) Persons engaged in the business of painting signs on
buildings or other real or personal property belonging to others are rendering
services, and their gross proceeds are not subject to sales or use tax. Sales
of paint, brushes, and other tangible personal property to such sign painters
are sales to purchasers for use or consumption and subject to the applicable
statutory state and local sales or use tax.
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.
17 NCAC 07B .0806 REPAIRS AND ALTERATIONS: GENERALLY
(a) Sales of tangible personal property by persons engaged
in the business of making repairs or alterations for users or consumers are
subject to the sales or use tax. Any charges for labor or services rendered in
installing or applying such repair or alteration parts are not subject to tax
provided such charges are segregated from the charge for the tangible personal
property sold on the invoice given to the customer at the time of the sale and
in the vendor's records; otherwise, the total amount is subject to tax.
(b) Sales of tangible personal property to those engaged in
repair work or alterations are sales for the purpose of resale if the property
is to be attached to or is to become a part of the property which is being
repaired or altered. Sales of tools, equipment and similar items to persons
who use said property in making repairs or alterations are subject to the
applicable statutory state and local sales or use tax.
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.
17 NCAC 07B .0807 CLOTHING ALTERATIONS
Charges to customers for alterations in connection with the
sale of clothing are exempt from tax when the alteration charges are separately
stated from the sale of the clothing in the seller's records and on the invoice
given to the customer at the time of the sale. If the charge for alterations
is not separately stated, the total charge is subject to the tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0808 REUPHOLSTERING
Persons who reupholster property for users or consumers are
liable for collecting and remitting the retail rate of tax on charges for
taxable tangible personal property sold in connection with the reupholstering.
Charges for labor or services rendered in reupholstering the customers'
property are not subject to tax provided such charges are segregated from the
charge for tangible personal property on the invoice given to the customer at
the time of the sale and in the vendor's records; otherwise, the total amount
is subject to the tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0809 LAMINATING SERVICES
Receipts derived from laminating tangible personal property
for the owner of such property are not subject to sales or use tax. Persons
performing laminating services on property belonging to others are liable for payment
of sales or use tax on all purchases of taxable tangible personal property for
use in the performance of such services. Sales of laminating materials to
persons who will use the materials to laminate their property for use are
subject to the tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0810 BULLETS AND SHELLS‑RELOADING
Vendors who reload shell or bullet casings which belong to
customers are liable for collecting and remitting tax on the sale of the shot,
pellet, powder, wadding, and other such items. No tax is due on reloading
charges if such charges are separately stated on invoices and in the vendors'
records.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .0811 FIRE EXTINGUISHERS: RECHARGING
Chemicals and other tangible personal property sold in
connection with refilling fire extinguishers are subject to the applicable
statutory state and local sales or use tax. Any labor charges in connection
with the refilling of fire extinguishers belonging to others are exempt from
tax provided such charges are stated separately on the invoice given to the
customer. In the absence of such separation the entire charge is taxable.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
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.
17 NCAC 07B .0901 ADVERTISING AND ADVERTISING AGENCIES
(a) Professional Services. -- Advertising agencies are
engaged in the business of rendering professional services when they produce
advertising, such as radio and television spots or newspaper, magazine, or
billboard advertising, and contract in their own behalf with radio and
television stations, newspaper or magazine publishers, outdoor advertising
companies, or other media for time or space to televise, broadcast, publish, or
otherwise display their advertising. Receipts derived by advertising agencies
from furnishing these professional services are not subject to sales or use
tax. However, their purchases of taxable tangible personal property for use in
producing the advertising are subject to the applicable statutory state and
local sales or use tax.
Agencies rendering professional services rely on expertise
in advertising strategy, media buying, and in graphic arts production in their
specialized fields to secure and retain clients. Usually agreements to provide
professional advertising services also have the following characteristics:
(1) The agency selects or advises the client on
the different kinds of advertising to be used.
(2) The agency is primarily responsible for
developing the concept or design of the advertising.
(3) The agency produces or arranges for the
production of the advertising.
(4) The agency places or arranges for the
placement of the advertising on radio or television stations or in newspapers,
magazines, or other media and the agency has purchased time or space in the
media to display the advertising instead of delivering it to the client for
placement or distribution.
Advertising agencies are also engaged in the business of
rendering services when they contract to do market research, consulting,
statistical analysis, or other services that result only in a report of their
findings to the client.
The tax is due on all tangible personal property purchased
by these agencies for use in the performance of the services in this Paragraph
regardless of whether the property is acquired in the name or account of the
advertising agencies or their clients. Advertising agencies that, in
performing these services, purchase paper, ink, printing plates, positives,
negatives, color separations, photographs, filmed or recorded commercials that
are not exempt audiovisual masters, and any other tangible personal property
from suppliers in North Carolina or from out‑of‑state suppliers who
charge the applicable tax must pay the tax due directly to their suppliers.
Advertising agencies that purchase tangible personal property, from out‑of‑state
suppliers who do not charge and remit the applicable tax must remit the use tax
due directly to the Department on the purchase price of the property without
any deduction on account of the cost of the materials used, labor or service
costs, transportation charges, or any expenses whatsoever.
(b) Retail Sales. -- Advertising agencies are considered to
be retailers when they produce, cause to be produced, fabricate, purchase, or
otherwise acquire catalogs, magazines, handbills, brochures, programs,
pamphlets, or similar printed matter or any other tangible personal property
they sell and deliver to their clients or to others on behalf of their clients
for delivery or distribution as advertising material or for any use or purpose
other than for resale. Advertising agencies making retail sales of tangible
personal property, other than exempt audiovisual masters, must collect and
remit the applicable statutory state and local sales or use tax on the sales
price of the property whether it is prepared by the agency or acquired from
outside sources. The sales price to which the tax applies is the total amount
for which the tangible personal property is sold including all charges for
services rendered in the production, fabrication, manufacture, or delivery of
the property, such as charges for commissions, supervision, research,
transportation charges, postage, telephone and telegraph messages, copy,
models' fees, stage props, printing, printing plates, film, positives,
negatives, transparencies and color separations, even though the agency may
separately state the charges on the invoice rendered to the client and in the
agency's records.
(c) Retainer and Consultation Fees. -- Charges by
advertising agencies to their clients for retainer fees that are directly
related to the purchase, acquisition, fabrication, or production and sale of
tangible personal property are subject to sales or use tax. Charges by advertising
agencies for retainer fees to their clients are generally paid in advance to
cover future services and if no sale of tangible personal property is involved
are not subject to sales or use tax. Consultation fees charged to clients in
connection with oral or written reports only and not in connection with the
sale of tangible personal property are also exempt from sales or use tax.
Consultation fees directly involved in transactions that require the purchase,
acquisition, fabrication or production and sale of tangible personal property,
such as pamphlets and brochures, are a part of the sales price and are subject
to sales and use tax even though the fees may be separately stated on the
customer's invoice. If an advertising agency is retained to perform market
research, analyze statistics, and develop an advertising concept on which a
report is presented, either orally or in writing to the client, the charges for
these services are not taxable. After considering the report, if the client
decides to pursue the advertising concept and contracts with the same agency to
develop and produce advertising material to be placed on radio or television
spots or in space in newspapers, magazines, or on billboards, the agency must
remit sales or use tax on its purchase of all taxable tangible personal
property used in producing the advertising material. If the advertising
concept calls for the production, fabrication, purchase, or acquisition of
catalogs, magazines, handbills, brochures, programs, pamphlets, or similar
printed matter or any other tangible personal property they sell and deliver to
their clients or to others for their clients, the advertising agency is making
retail sales subject to sales and use tax on the sales price of the property.
The sales price to which the tax applies includes all the items and services
described in Paragraph (b) of this Rule.
(d) Purchases for Resale. -- Purchases by advertising
agencies of paper, ink, and other tangible personal property that become a part
of tangible personal property sold by advertising agencies at retail or
wholesale, including purchases for resale in the same form, are exempt from
sales or use taxes when the purchases are supported by properly completed
Streamlined Sales Tax Agreement Certificates of Exemption, form E-595E, or other evidence in
writing adequate to support the conclusion that the property is being purchased
by a registered merchant for the purpose of resale. The term "part of
tangible personal property" includes only those items that are incorporated
into and become a part of property sold and does not include those items that
are merely used or incidentally consumed in its production. For example, a
photograph, transparency, printing plate, positive, negative, or color
separation does not become an ingredient or component part of property sold
even though the image thereon is reproduced as a part of the property sold.
(e) Purchasing for Use. -- Purchases by advertising
agencies of film, printing plates, photographs, positives, negatives,
transparencies, color separations, and similar tangible personal property for
use in the production of advertising material are subject to the applicable
statutory state and any local sales or use tax because the property does not
become incorporated into or become a component part of the property produced
for sale. When advertising agencies purchase items for use in the production
of property for sale, they are the users or consumers of the property and must
pay the state and local sales or use tax on the cost price without regard to
the disposition that may be made of the items by the advertising agency.
(f) Acting as Agent .-- An agent is one who represents
another, called the principal, with third parties. For sales and use tax
purposes, to establish that a particular acquisition is made by an agency as
agent for its client and not on the agency's own behalf, all of the following
must apply:
(1) The agency must disclose to the supplier
the name of the principal for whom the agency is acting as agent and establish
that it has the authority to bind the principal with respect to the purchase.
(2) The agency must be able to document that
its status as agent existed prior to the acquisition.
(3) The price billed by the agency to the
principal for the personal property, exclusive of any agency fee, must be the
same as the amount paid to the supplier.
(4) The agency may make no use of the property
for its own account.
An advertising agency must remit the tax due on its
purchases to suppliers within this state and suppliers outside this state who
collect and remit the applicable tax. An advertising agency that purchases
tangible personal property on behalf of a principal from out‑of‑state
suppliers who do not charge and remit the applicable tax must remit the use tax
due, as agent for its principal, directly to the Department on the purchase
price of the tangible personal property without any deduction on account of the
cost of the materials used, labor or service costs, transportation charges, or
any expenses whatsoever. All acquisitions by advertising agencies of tangible
personal property such as catalogs, brochures, pamphlets, and the like are
regarded as purchases by agencies on their own behalf for resale or for use
unless the agency establishes with respect to any acquisition that it is acting
as agent for its principal pursuant to a prior express contract. An
advertising agency purchasing tangible personal property as an agent on behalf
of its client for the client's use may not issue its certificate of exemption
to the supplier. An advertising agency that issues its certificate of
exemption to its supplier is presumed to be purchasing tangible personal
property in its own behalf for resale rather than acting as agent for its
principal.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13(22a); 105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; August 1, 1998; October 1,
1993; October 1, 1991;
December 1, 1984; May 11, 1979.
17 NCAC 07B .0902 ADVERTISING ARTISTS
Advertising artists who actually produce
paintings, portraits, negatives, photographs, or other tangible artistic
creations and sell them to users or consumers are liable for collecting and
remitting the applicable statutory state and local sales or use tax on the
sales price of such articles.
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; July 5, 1980.
17 NCAC 07B .0903 HANG TAGS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .0904 PUBLIC RELATIONS FIRMS
(a) Public Relations Firm Rendering
Professional Services: If a public relations firm is retained to plan and
conduct a public relations program which requires it to conduct research,
opinion polls and surveys, compile data, analyze all of the foregoing and
present a written or oral report of its findings to its client, the charges for
these services are not subject to sales or use tax. The public relations firm
shall pay the applicable statutory state and local sales or use tax on the cost
price of any tangible personal property purchased for use in performing the
aforementioned services. If the client decides to pursue the plan or concept
developed by the public relations firm and such action results in the development
or acquisition of tangible personal property by the public relations firm for
its use in carrying out the goals or objectives of the plan or concept, it is
liable for paying the applicable statutory state and local sales or use tax on
such purchases.
(b) Public Relations Agency Making Retail
Sales: If the plan or concept calls for the production, fabrication, purchase
or acquisition of tangible personal property by the public relations firm which
it sells and delivers to its client or sells to its client and delivers to
others on behalf of its client, the public relations firm is making retail
sales which are subject to sales or use tax on the sales price of such
property. Tax shall apply to the sales price of the property and shall include
fees directly involved in the production of the property and those charges
specifically associated with the fabrication, manufacture or delivery of the
property, such as charges for commissions, supervision, research,
transportation charges, postage, telephone and telegraph messages, copy,
models' fees, stage props, printing, printing plates, film, positives,
negatives, transparencies and color separations even though the firm may
separately state such charges on the invoice rendered to the client and in the
firm's records.
Note: For Retainer and Consultation Fees: See 17 NCAC 7B
.0901(c).
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. October 1, 1993;
Amended Eff. April 1, 2006.
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.
17 NCAC 07B .1002 SHOE REPAIRMEN
(a) Charges for materials used by shoe repairmen in
repairing shoes or other articles for their customers are subject to the
applicable statutory state and local sales or use tax. A segregation may be
made between the retail charge for the materials furnished and the charge for
labor or services rendered and in such case the tax does not apply to the labor
or service charge separately stated.
(b) If no segregation is made between the charges for the
materials furnished and the charges for labor and services performed in
connection with the repair work, shoe repairmen may collect and remit the tax
on 40 percent of the combined price or charge made for the materials, labor and
services as representing the retail charge for the materials furnished.
(c) The sales or use tax applies to the full retail selling
price of tangible personal property such as shoes, shoe laces and shoe polish
sold by shoe repairmen.
(d) All shoe repair machinery, parts therefor, tools,
equipment and supplies, other than those described in Paragraph (e) of this
Rule, sold to persons engaged in the business of repairing shoes and which are
used or consumed by such persons in shoe repair operations are subject to the
applicable statutory state and local sales or use tax.
(e) Sales to registered merchants of leather, rubber or
like products, cement, thread and other items of a similar nature which
ordinarily become a part of or attach to shoes which are repaired and are sold
to and delivered with the repaired shoes to customers, including bags for
delivery of the shoes, are sales for resale and may be sold on Streamlined
Sales Tax Agreement Certificates of Exemption, form E-595E. If registered shoe
repairmen purchase other tangible personal property for resale to their
customers, their suppliers shall also secure certificates of exemption in
connection with such sales. If the items that shoe repairmen generally
purchase for use are purchased by them for the purpose of resale to other shoe
repairmen, or other users, their suppliers shall secure a certificate of
exemption with each such sale to support the claim for the exemption from the
retail tax.
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.
17 NCAC 07B .1003 WATCH: CLOCK AND JEWELRY REPAIRMEN
(a) Charges for repair parts and other materials used by
watch, clock and jewelry repairmen in repairing watches, clocks, jewelry and
other articles for their customers are subject to the applicable statutory
state and local sales or use tax. A segregation may be made between the retail
charge for the materials furnished and the charge for labor or services
rendered and in such case the tax does not apply to the labor or service
charges separately stated.
(b) If no segregation is made between the charges for the
materials furnished and the charges for labor and services performed in
connection with such repair work, repairmen may collect and remit the tax on
ten percent of the combined price or charge made for the materials, labor and
services as representing the retail charge for the materials furnished.
(c) Sales of watches, clocks, watch bands, watch chains,
trophies, jewelry and other taxable tangible personal property are subject to
the applicable statutory state and local sales or use tax on the full retail
sales price. Any charges for labor or services rendered in engraving tangible
personal property selected by a vendee and left with the vendor to be engraved
are exempt from tax when such charges are segregated from the charge for the
tangible personal property sold on the invoice given to the customer at the
time of the sale and in the vendor's records; otherwise, the total amount is
subject to tax.
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; February 1, 1988.
SECTION .1100 ‑ SALES OF TOBACCO items: FARM MACHINES
AND MACHINERY
17 NCAC 07B .1101 FARM MACHINES: MACHINERY: TOBACCO ITEMS
(a) Sales to farmers of farm machinery, attachment and
repair parts for farm machinery, and lubricants applied to farm machinery for
use by them in planting, cultivating, harvesting or curing of farm crops
including nursery or greenhouse stock and products of the forest, or to dairy
operators, poultry farmers, egg producers, and commercial producers of animals
are exempt from sales and use tax. Sales of farm machinery, attachment and
repair parts for farm machinery, and lubricants applied to farm machinery to
farmers for any purpose or use not defined in this Rule, or to any person other
than a farmer as herein defined, even though for a use or purpose herein
defined, are subject to the applicable statutory state and local sales or use
tax without limitation. In other words, to qualify for the exemption from
sales and use tax, the transaction must be a sale of farm machinery, attachment
and repair parts for farm machinery, and lubricants applied to farm machinery
to a farmer for one of the uses or purposes herein defined and unless all three
conditions are met, the sale is subject to the applicable statutory state and
local sales or use tax without limit.
(b) Form E-595E, Streamlined Sales Tax Agreement
Certificate of Exemption, may be completed by a farmer or producer and accepted
by a vendor as the authority for exempting from the sales and use tax the
following:
(1) farm machinery, attachment and repair parts
for farm machinery, and lubricants applied to farm machinery for use in
planting, cultivating, harvesting or curing farm crops, including nursery or
greenhouse stock and products of the forest, or for use in the production of
dairy products, poultry, eggs, livestock, fish or aquatic plants.
(2) The lease or rental of tobacco sheets used
in handling tobacco in the warehouse and transporting tobacco to and from the
warehouse.
(3) A metal flue sold for use in curing tobacco,
whether the flue is attached to a handfired furnace or used in connection with
a mechanical burner.
(4) A bulk tobacco barn or rack, parts and
accessories attached to the tobacco barn or rack, and any similar apparatus,
part, or accessory used to cure or dry tobacco or another crop.
(5) A grain, feed, or soybean facility, and
parts and accessories attached to the facility.
(6) Containers for use in the planting,
producing, harvesting, curing, marketing, packaging, sale, or transporting or
delivery of products when such containers do not go with and become a part of
the sale of products.
(7) Wrapping paper, labels, wrapping twine,
paper, cloth, plastic bags, cartons, packages and containers, wooden boxes,
baskets, coops, barrels, and like articles sold to farmers and producers when
such materials are used for packaging, shipment or delivery of tangible
personal property which is sold either at wholesale or retail and when such
articles constitute a part of the sale of such tangible personal property and are
delivered with it to the customer.
(c) When a customer makes a purchase and executes a Form
E-595E, Streamlined Sales Tax Agreement Certificate of Exemption which is then
furnished to the vendor, the vendor is relieved of the liability for any
additional tax that is subsequently determined to be due and the purchaser has
assumed liability for the tax if the vendor has a fully completed Form E-595E
on file. In the absence of the certificate or other documentation to support
an exemption from tax, the vendor is liable for any additional tax determined
to be due on a transaction.
(d) The following are examples of sales of farm machinery,
attachment and repair parts for farm machinery, and lubricants applied to farm
machinery which are exempt when sold to farmers for use by them in planting,
cultivating, harvesting or curing farm crops:
(1) tractors,
(2) plows,
(3) harrows,
(4) cultivators,
(5) mowers,
(6) planters,
(7) corn pickers and snappers,
(8) manure spreaders,
(9) manure loaders,
(10) harvester threshers,
(11) rotary tillers,
(12) fertilizer distributors,
(13) wind‑rowers,
(14) forage blowers,
(15) stalk cutters,
(16) seeders,
(17) grain loaders,
(18) harvesters,
(19) cotton pickers,
(20) rotary hoes,
(21) corn and hay elevators,
(22) tobacco curers,
(23) tobacco flues,
(24) tobacco trucks or slides,
(25) wagons,
(26) non‑highway trailers,
(27) mechanical rakes,
(28) balers,
(29) rod weeders,
(30) combines,
(31) tobacco transplanters,
(32) shredders for corn stalks,
(33) power loader lifts,
(34) platform carriers,
(35) portable insecticide sprayers,
(36) chain saws,
(37) motor oils, greases, lubricants and anti‑freeze;
(38) hydraulic fluids.
(e) Examples of items which are subject to the applicable
statutory state and local sales or use tax when sold to farmers for general
purposes:
(1) lawn mowers;
(2) snow plows;
(3) oil storage tanks and fittings;
(4) drainage tile;
(5) paint, cleaning compounds and brushes;
(6) baler twine;
(7) tobacco sticks and tobacco twine;
(8) tools for maintaining machinery and
equipment.
(f) The lists in Paragraphs (d) and (e) of this Rule are
not intended to be exclusive, but are for illustrative purposes only. If there
is any question as to the tax status of any item which does not appear therein,
such question shall be submitted to the secretary, together with a detailed
statement of the business of the purchaser, the design and structure of the
article, and its use, to the end that the applicable rate of tax may be
correctly determined.
(g) The word farmer as used in this Rule includes crop
farmers, dairy operators, poultry farmers, egg producers, livestock farmers,
nurserymen, greenhouse operators, farmers who raise fish or water plants,
orchardmen and other persons coming within the generally accepted definition of
the word. It does not include a person who merely cultivates a garden for
personal use.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44;
Eff. February 1, 1976;
Amended Eff. June 1, 2006; August 1, 1996; April 1, 1995;
July 1, 1994; October 1, 1993; June 1, 1992.
17 NCAC 07B .1102 EXPERIMENTAL FARMS
North Carolina State University and the Department of
Agriculture operate experimental farms which sell the farm products they
produce and therefore are classified as farmers within the generally accepted
meaning of the word. The farms at Women's Prison, Caledonia Prison and its
field unit also come within the classification of farmers.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .1103 TRACTORS: BACKHOES: DRAGLINES
Sales of tractors, backhoes or draglines to farmers for use
in the construction and maintenance of drainage facilities to promote the
growth of farm crops are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.6; 105-164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006.
17 NCAC 07B .1104 IRRIGATION EQUIPMENT
Irrigation equipment, including irrigation pumps, irrigation
pipe, sprays, and nozzles, is farm machinery when sold to farmers; these items
are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.6; 105-164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006.
17 NCAC 07B .1105 ANIMAL CLIPPERS
Sales of animal clippers and parts therefor to farmers for
use in the commercial production of animals are exempt from tax when such
clippers are placed or installed in or affixed to any commercially manufactured
facility, enclosure or structure used for commercial purposes in housing,
raising or feeding animals.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; October 1, 1993; August 1,
1988; July 5, 1980.
17 NCAC 07B .1106 LAYING CAGES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. November 1, 1982; July 5, 1980;
Repealed Eff, January 3, 1984.
17 NCAC 07B .1107 EGG CLEANING DETERGENT
Sales of egg cleaning detergent to poultry farmers for use
in cleaning eggs are subject to the applicable statutory state and local sales
or use tax.
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. June 1, 2006; October 1, 1993; October 1,
1991.
17 NCAC 07B .1108 EGG COOLING CABINETS
Sales of egg cooling cabinets to be placed or installed in
or affixed to any commercially manufactured facility, enclosure or structure
specifically designed, constructed and used for commercial purposes for
housing, raising or feeding poultry are exempt from sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; August 1, 1988.
17 NCAC 07B .1109 FEED MILLS
Sales of feed mills to be placed or installed in or affixed
to any commercially manufactured facility, enclosure or structure specifically
designed, constructed and used for commercial purposes for housing, raising or
feeding animals are exempt from sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; August 1, 1988.
17 NCAC 07B .1110 COOLING FANS
Sales of cooling fans to be placed or installed in or
affixed to any commercially manufactured facility, enclosure or structure
specifically designed, constructed and used for commercial purposes for
housing, raising or feeding animals are exempt from sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; August 1, 1988; July 5,
1980.
17 NCAC 07B .1111 VENTILATORS
Ventilators which have no moving parts and which are
installed in tobacco barns, other than bulk tobacco barns, are subject to the applicable
statutory state and local sales or use tax. The ventilators are a part of a
building or structure and are not classified as farm machines or machinery.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006; October 1, 1993; October 1,
1991.
17 NCAC 07B .1112 SILO UNLOADERS: BARN CLEANERS
Sales of silo unloaders and mechanical barn cleaners to be
placed or installed in or affixed to any commercially manufactured facility,
enclosure or structure specifically designed, constructed and used for commercial
purposes for housing, raising or feeding animals are exempt from sales or use
tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; August 1, 1988.
17 NCAC 07B .1113 MACHINERY STORAGE EQUIPMENT
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991; August 1, 1988;
Repealed Eff. October 1, 1993.
17 NCAC 07B .1114 SCALES
Sales of scales to be placed or installed in or affixed to
any commercially manufactured facility, enclosure or structure specifically
designed, constructed and used for commercial purposes for housing, raising or
feeding animals are exempt from sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; August 1, 1988.
17 NCAC 07B .1115 SNAPBEAN GRADERS
Snapbean graders are not used in the planting, cultivating,
harvesting or curing of farm crops and are subject to the applicable statutory
state and local sales or use tax when sold to farmers for use.
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. June 1, 2006; October 1, 1993; October 1,
1991.
17 NCAC 07B .1116 LIQUID FERTILIZER APPLICATORS
Sales of liquid fertilizer applicators to farmers for use in
planting or cultivating farm crops are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.6; 105-164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006.
17 NCAC 07B .1117 MECHANICAL POST HOLE DIGGERS
Sales of mechanical post hole diggers to farmers for use in
building fences for use in their farming operations are exempt from sales and
use tax.
History Note: Authority G.S. 105‑164.6; 105-164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006.
17 NCAC 07B .1118 SICKLE GRINDERS
Sales of sickle grinders to farmers for use are subject to
the applicable statutory state and local sales or use tax.
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. June 1, 2006; October 1, 1993; October 1,
1991.
17 NCAC 07B .1119 TOBACCO TYING MACHINES
Sales of tobacco tying machines to farmers for use in
harvesting tobacco crops are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.6; 105-164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006.
17 NCAC 07B .1120 COTTON BAGS AND SHEETS
Sales to farmers of cotton picking bags and cotton sheets
for use in harvesting cotton are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.6; 105-164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006; November 1, 1982.
17 NCAC 07B .1121 LITTER
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. September 12, 1981.
17 NCAC 07B .1122 RIGHT‑OF‑WAY EQUIPMENT
Sales of tractors and bush‑cutting equipment to power
companies, railroad companies, counties, cities, and contractors for use in
cutting and maintaining rights‑of‑way are subject to the applicable
statutory state and local sales or use tax.
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. June 1, 2006; October 1, 1993; October 1,
1991; October 1, 1988.
17 NCAC 07B .1123 CERTAIN SALES TO COMMERCIAL ANIMAL
FARMERS
For the purpose of this Rule, the word "animal"
means swine, cattle, horses, mules, sheep, chickens, turkeys, fish, and other
similar domestic animals held or produced for commercial purposes. The word
"commercial" means held or produced for income or profit and does not
include the production of animals for one's personal use or consumption and not
for sale. Commercial animal farmers, contractors performing contracts with
commercial animal farmers, and subcontractors performing contracts with general
contractors who contract with commercial animal farmers may obtain a Streamlined
Sales Tax Agreement Certificate of Exemption, Form E-595E, from the North
Carolina Department of Revenue, to be executed by them and furnished to their
vendors to establish the vendors' authority to exempt purchases by them from
sales and use taxes. If a Form E-595E is properly executed, a vendor is
relieved of liability for any additional tax found to be due with reference to
a sale for which the vendor did not charge sales tax in reliance on the fully
completed certificate. By executing a fully completed certificate, the
purchaser assumes liability for any sales tax subsequently determined to be
due. The vendor is not protected in this manner without the certificate.
Vendors that do not choose to use the Form E-595E must maintain other written
evidence adequate to support the conclusion that a sale is exempt from tax in
accordance with the provisions of G.S. 105‑164.13(4c).
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 2006; August 1, 1998; August 1,
1996; May 1, 1995; October 1, 1993;
June 1, 1992; February 1, 1988.
SECTION .1200 ‑ HOTELS: MOTELS: TOURIST CAMPS AND
TOURIST CABINS
17 NCAC 07B .1201 TAXABILITY OF GROSS RECEIPTS
(a) Gross receipts derived from the rental of any room or
rooms, lodgings or accommodations furnished by any hotel, motel, inn, tourist
camp, tourist cabin and any private residence, condominium (time share and
interval ownership properties), cottage or any other place in which rooms,
lodgings or accommodations are furnished to transients for consideration are
subject to the general rate of State tax and any applicable local sales or use
tax, except as set forth in Paragraphs (b) and (c) of this Rule or as otherwise
provided by the statute.
(b) Receipts derived from the rental of any room, lodging
or accommodation to the same person for a period of 90 continuous days or more
are not subject to the tax, and the tax collected from any person prior to the
accumulation of such 90 continuous days of occupancy by said person shall be
refunded to such person by the retailer collecting the same. A retailer
actually making any such refund of tax which he has paid to the department may
claim credit for the tax so refunded on a subsequent return filed by him with
the department.
(c) Receipts derived from an occasional or isolated rental
of a private residence or cottage by the owner for less than a total of 15 days
in a calendar year are not subject to sales tax. The less than 15 days
exclusion is applicable only to those private residences and cottages which are
not made available for rental to transients. If the private residence or
cottage is generally or routinely made available by the owner for rental to transients,
the less than 15 days exclusion is not applicable to such rentals and all
receipts there from are taxable without regard to the aforementioned period.
When private residences and cottages are listed with real estate agents,
including "real estate brokers" as defined in G.S. 93A‑2, for
rental to transients, such private residences and cottages are deemed to be
generally available for rental to transients and the less than 15 days
exclusion is not applicable to any receipts from such rentals to transients.
(d) Sales of time share or interval ownership property
which can be transferred by estate, gift or devise pursuant to deeds or
documents under which the owners have a fixed and continuing right to occupy
such units during a specified period of time in the same manner as a person who
owns or is buying a private residence or cottage are considered to be sales of
real property not subject to sales or use tax. When owners of interval
ownership and time share property do not occupy the property but rent it to
transients or place the property in the hands of a rental agent, including
"real estate brokers" as defined in G.S. 93A‑2, for rental on
their behalf to transients, such receipts are subject to sales tax and the less
than 15 days exclusion is not applicable to any receipts from such rentals as
explained in Paragraph (c) of this Rule.
History Note: Authority G.S. 105‑164.4; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1991; August 1, 1988; July 1, 1984.
17 NCAC 07B .1202 SUPPLIES AND EQUIPMENT
Sales to hotels, motels, inns, tourist camps, and tourist
cabins and other places in which rooms, lodgings or accommodations are
furnished for a consideration, of any supplies, equipment, or fixtures
including but not limited to beds, bedding, bathroom supplies and furniture are
subject to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .1203 SINGLE FAMILY COTTAGES
History Note: Authority G.S. 105‑164.4; 105‑262;
105‑264;
Eff. February 1, 1976;
Amended Eff. September 30, 1977;
Repealed Eff. January 3, 1984.
SECTION .1300 ‑ SALES IN INTERSTATE COMMERCE
17 NCAC 07B .1301 OUT‑OF‑STATE DELIVERIES
Sales within the State of tangible personal property that
the vendor delivers to the purchaser at a point outside the State, or that the
vendor delivers to a common carrier or to the mails for transportation and
delivery to the purchaser at a point outside the State, are not subject to the
applicable state and local sales or use tax if the property is not returned to
a point within the State and the vendor furnishes acceptable proof of
transportation to a point outside the State. The most acceptable proof of
transportation and delivery to a point outside the State is any of the
following:
(1) A waybill or bill of lading made out to the
seller's order calling for delivery.
(2) An insurance or registry receipt issued by the
United States Postal Service, or a postal service or receipt.
(3) A trip sheet that is signed by the seller's
delivery agent and shows the signature and address of the person who received
the delivered goods outside the state.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 1999; August 1, 1998; October 1, 1993; October 1, 1991.
17 NCAC 07B .1302 IN‑STATE DELIVERIES
Sales of tangible personal property delivered
in this state to the buyer or his agent, if such agent is not a common carrier,
are subject to the applicable statutory state and local sales or use tax,
notwithstanding that the buyer may subsequently transport, or employ someone
else to transport, the property out of this state, except as provided by G.S.
105‑164.13.
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; January 1, 1982;
February 8, 1981.
17 NCAC 07B .1303 DELIVERIES TO DONEES
A donee is a person to whom the buyer of tangible personal
property gives the property without charge. When a North Carolina retailer
sells tangible personal property to a buyer and the retailer, at the direction
of the buyer, delivers the property to the buyer's donee instead of to the
buyer, the sale by the retailer is subject to applicable statutory State and
local sales tax only if the delivery to the donee is made inside the State. If
the delivery to the donee is made outside the State, no State or local sales or
use tax applies. A retailer who, at the direction of a buyer, delivers
property to the buyer's donee at a point outside the State must have acceptable
proof of delivery in accordance with 17 NCAC 07B .1301.
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; July 18, 2002; July 1, 1999;
October 1, 1993; October 1, 1991; March 1, 1984; January 3, 1984.
17 NCAC 07B .1304 MACHINERY ENTERING STATE
When a North Carolina vendor sells tangible
personal property and installs same on machinery or other property brought into
this state for the purpose of having the property installed thereon and the
North Carolina vendor delivers the property to the vendee at a point outside
this state, the sale is consummated outside this state and is exempt from this
state's tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .1305 FOREIGN COMMERCE: PURCHASES FOR EXPORT
Tangible personal property purchased for
export and exempt from sales tax pursuant to G.S. 105‑164.13(33) will
lose its exemption if it is not exported within 90 days of purchase. Such
property would then become subject to the applicable state and local use tax
payable directly to the Department.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. October 1, 1993.
17 NCAC 07B .1401 PRESCRIPTION DRUGS
Prescription drugs are exempt from sales and use tax. This
applies regardless of whether the drug is used by a physician or another
medical provider in administering treatment to a patient.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; October 1, 1993; May 1, 1990;
August 1, 1988.
17 NCAC 07B .1402 MEDICINES: SALES TO PHYSICIANS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; August 1,
1988;
Repealed Eff. July 1, 2000.
17 NCAC 07B .1403 NONPRESCRIPTION MEDICINES AND DRUGS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991; August 1, 1988;
Repealed Eff. October 1, 1993.
17 NCAC 07B .1404 MEDICAL SUPPLIES AND EQUIPMENT
Sales to physicians, dentists, hospitals, or other users or
consumers of medical instruments and laboratory equipment used to diagnose,
prevent, treat, or cure disease are subject to applicable state and local sales
or use tax. Sales of medical equipment and medical supplies are also subject
to applicable state and local sales or use tax, unless their sale is exempt
under G.S. 105-164.13(12)d. That statute exempts from tax durable medical
equipment and related medical supplies that are covered under the Medicare or
Medicaid program and are sold on either a certificate of medical necessity or a
written prescription. Items listed below are subject to tax, unless their sale
is exempt under G.S. 105-164.13(12)d. Items not included in the list may also
be subject to tax:
(1) Adhesive tape;
(2) Alcohol;
(3) Bandages;
(4) Battery chargers;
(5) Bed pans;
(6) Betadine solution;
(7) Blood glucose monitors;
(8) Blood glucose test/reagent strips;
(9) Blood or urine control strips;
(10) Breathing circuits;
(11) CO/2 saturation monitors and accessories;
(12) Cotton;
(13) Crutch and cane holders;
(14) Cylinder tank carriers;
(15) Dial-a-dose insulin delivery devices;
(16) Dressings;
(17) Exam gloves;
(18) Gauze;
(19) Knives;
(20) I.V. hangers;
(21) I.V. poles;
(22) Lancets;
(23) Microscopes;
(24) Mouthpieces;
(25) Needles;
(26) Peak flow meters;
(27) Percussors;
(28) Pulse oximeters;
(29) Rollabout chairs;
(30) Scissors;
(31) Sterile water;
(32) Surgical gloves;
(33) Syringes;
(34) Tracheal suction catheters;
(35) Tracheostomy care kits;
(36) Tracheostomy cleaning brushes;
(37) Tracheostomy masks and collars;
(38) Tubing, sold by the linear foot or
otherwise;
(39) Urinals;
(40) Urine test or reagent strips or tablets; and
(41) X-ray machines.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105.164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; August 1, 1998; October 1,
1993; October 1, 1991.
17 NCAC 07B .1405 INSULIN
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1988;
Repealed Eff. October 1, 1993.
17 NCAC 07B .1406 BLOOD PRODUCTS: BODY TISSUE
Transactions involving the procurement,
processing, distribution or use of whole blood plasma, blood products, blood
derivatives and other body tissue or organs that are to be injected, transfused
or transplanted into the human body are deemed to be services and any charges
therefor are exempt from sales or use tax pursuant to the provisions of G.S.
130A‑410.
History Note: Authority G.S. 105‑164.3; 105‑262;
105‑264; 130A‑410;
Eff. February 1, 1976;
Amended Eff. July 1, 1989; September 14, 1977.
SECTION .1500 ‑ FINANCE COMPANIES: FINANCE CHARGES AND
CARRYING CHARGES
17 NCAC 07B .1501 FINANCE COMPANIES
(a) If a finance company maintains a regular place of
business wherein repossessed tangible personal property is sold or placed on
display for sale as an adjunct to the principal business of the finance
company, such finance company must register with the department and collect and
remit the applicable state and local tax on its sales.
(b) If a finance company, as an incident only of its
finance business, has occasion, from time to time, to repossess articles of
tangible personal property upon which payments have become delinquent and sells
such tangible personal property either at public auction or at private sale,
such sales shall be deemed occasional sales and are not subject to the tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262;
Eff. February 1, 1976;
Amended Eff. June 1, 1992; October 1, 1991.
17 NCAC 07B .1502 FINANCE AND CARRYING CHARGES
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
section .1600 – sales to or by hospitals: educational:
charitable or religious institutions: etc.: and refunds thereto
17 NCAC 07B .1601 SALES TO OR BY NONPROFIT ENTITIES
(a) Sales To Nonprofits -- Sales of taxable tangible
personal property to a nonprofit entity for use or consumption by that entity
are subject to sales or use tax. Nonprofit entities include hospitals not
operated for profit, educational institutions not operated for profit,
churches, and civic groups such as chambers of commerce, fraternities,
sororities, and scout clubs. Sales of building materials, supplies, fixtures,
and equipment to contractors for use in the performance of contracts with a
nonprofit entity are also subject to sales or use tax. A nonprofit entity must
pay sales tax charged on its purchases and is liable for use tax on its
purchases when no sales tax is collected. A nonprofit entity that owes use tax
must file a return in accordance with 17 NCAC 7B .0104.
(b) Sales By Nonprofits. - Sales by nonprofit entities are
subject to sales or use tax unless a specific exemption applies to the sale. A
nonprofit entity that makes taxable retail sales must register with the
Department and file sales and use tax returns. A nonprofit entity that is
registered with the Department may execute a Streamlined Sales Tax Agreement
Certificate of Exemption, form E-595E. The certificate shall not be used for
items the nonprofit entity intends to use or consume.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article
43; Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; July 1, 2000; October 1,
1993; October 1, 1991; January 1, 1982; July 5, 1980.
17 NCAC 07B .1602 REFUNDS TO NONPROFIT ENTITIES
(a) Eligibility -- A nonprofit entity listed in G.S.
105-164.14(b) may file a claim for refund for sales or use tax paid by it on
items purchased for its use and for sales and use tax paid indirectly by it on
building materials, supplies, fixtures, and equipment that become part of a
building it owns or leases and uses to conduct its nonprofit activity. A claim
for refund must be filed on a form provided by the Department. A claim for
refund applies to taxes paid during the period for which the claim for refund
is filed.
(b) Proof for Direct Purchases -- A claim for refund must
be supported by documentation showing the amount of tax paid. For items
purchased by a nonprofit entity for its use, adequate documentation is an
invoice or copy of an invoice that sets out the item purchased, the date of the
purchase, the cost of the item, and the amount of sales or use tax paid.
(c) Proof for Contractor Purchases -- A claim for refund
for sales or use tax paid indirectly on building materials, supplies, fixtures,
and equipment must be supported by adequate documentation showing the amount
paid. Adequate documentation is a certified statement from the contractor or
subcontractor that purchased the items. The statement must indicate the item
purchased, the vendor from whom it was purchased, the invoice number of the
purchase, the cost of the item, and the amount of sales or use tax paid. Only
items that become part of a building the nonprofit entity owns or leases and
uses to conduct its nonprofit activity are eligible for a refund. A contractor
may not include in its statement items the contractor purchased and used to
fulfill the contract but did not become part of the building constructed.
Examples of items that are not to be included in the contractor's statement are
scaffolding, forms for concrete, fuel for the operation of machinery and
equipment, tools, equipment repair parts, equipment rentals, and blueprints.
(d) Items Not Refundable -- The refund provisions of this
Rule do not apply to sales taxes incurred by employees on purchases of food,
lodging, or other taxable travel expenses paid by employees and reimbursed by a
nonprofit entity listed in G.S. 105-164.14(b). These expenses are personal to
the employee because the contract for food, shelter, and travel is between the
employee and the provider and payment of the tax is by the employee
individually and personally. In this circumstance, a nonprofit entity has not
incurred any sales tax liability and has not paid any sales tax; instead, it
has chosen to reimburse a personal expense of the employee. The refund
provisions of this Rule do not apply to any of the following:
(1) Charges for electricity and
telecommunications services;
(2) Occupancy taxes levied and administered by
certain counties and cities in this State;
(3) Prepared food and beverage taxes levied by
various local governments in this State;
(4) Highway use taxes paid on the purchase,
lease, or rental of motor vehicles;
(5) The white goods disposal tax levied on new
white goods;
(6) The scrap tire disposal tax levied on new
tires; or
(7) The dry-cleaning solvent tax levied on
dry-cleaning solvent purchased by a dry cleaning facility.
History Note: Authority G.S. 105-164.14; 105-262; 105-264;
Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; July 1, 2000; July 1, 1999;
August 1, 1998; April 1, 1997;
August 1, 1996; October 1, 1993; March 1, 1993; June 1,
1992; October 1, 1991.
17 NCAC 07B .1603 PARENTS AND TEACHERS ASSOCIATIONS
The National Parent Teacher Association and its local units
(parent teacher associations) are entitled to a refund of sales and use taxes
paid in this state on their purchases of taxable tangible personal property for
use in carrying on their work.
History Note: Authority G.S. 105-164.14; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009.
17 NCAC 07B .1604 CONTRACTOR'S TOOLS
Claims for refund of taxes under the provisions of G.S. 105‑164.14
shall not include tax paid by a contractor on expendable tools, supplies and
equipment which do not annex to or become a part of the building or structure.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .1605 CLUBS: ASSOCIATIONS: ETC.
Clubs, lodges, parents and teachers associations, scout
councils and similar organizations which make regular retail sales of taxable
tangible personal property must register with the Department of Revenue and pay
the sales tax on such sales except as provided by G.S. 105‑164.13(34) and
G.S. 105‑164.13(35).
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976;
Amended Eff. January 1, 1982; July 5, 1980.
SECTION .1700 ‑ SALES TO OR BY THE STATE: COUNTIES:
CITIES: AND OTHER POLITICAL SUBDIVISIONS
17 NCAC 07B .1701 GOVERNMENTAL SALES AND PURCHASES
(a) General. -- With the exception of electricity and
telecommunication and ancillary service, sales to State agencies are exempt
from State and local sales or use taxes pursuant to G.S. 105-164.13(52), and
from the privilege tax pursuant to Article 5F of Chapter 105 of the General
Statutes. The items must be purchased by the State agency for its own use
pursuant to a valid purchase order issued by the agency that contains its
exemption number and a description of the property purchased, or the items must
be paid for with a State-issued check, electronic deposit, credit card,
procurement card, or credit account of the agency. For all purchases other
than by an agency-issued purchase order, the agency must provide to or have on
file with the retailer the agency's exemption number. The exemption does not
apply to sales of tangible personal property to contractors for use in the
performance of contracts with State agencies or to sales of tangible personal
property to employees of State agencies. Sales to counties, cities, and other
political subdivisions are subject to the applicable State and local tax.
(b) A governmental unit that sells tangible personal
property at retail is considered to be a retailer. The reporting, payment, and
other requirements that apply to a nongovernmental entity apply to a
governmental entity unless a law exempts the governmental entity from the
requirement.
(c) DOT. -- Sales to the Department of Transportation are
exempt from State and local sales and use tax. This exemption does not apply
to sales of tangible personal property to contractors for use in the
performance of contracts with the Department of Transportation nor to sales of
tangible personal property to employees of the Department of Transportation.
History Note: Authority G.S. 105-164.3; 105‑164.4;
105‑164.6; 105-164.13; 105-187.52; 105‑262; Article 39; Article 40;
Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; August 1, 1998; August 1,
1996; October 1, 1993; October 1, 1991; May 1, 1990; February 1, 1987.
17 NCAC 07B .1702 REFUNDS TO COUNTIES, CITIES, AND OTHER
GOVERNMENTAL ENTITIES
G.S. 105-164.14(c) lists the governmental entities that are
allowed an annual refund of sales and use taxes as well as the sales and use
taxes for which a refund is allowed. The entities listed are eligible for
refunds of sales and use taxes paid on their purchases to the same extent as
other nonprofit entities. Rule 17 NCAC 7B .0602 addresses refunds for
nonprofit entities. Governmental entities must file an annual claim for
refund, however, instead of a semiannual claim for refund. The annual claim
requirement does not apply to a hospital or another medical facility that is an
agency of a county or city and has received approval from the Secretary to file
a claim for refund on a semiannual basis. Rule 17 NCAC 7B .1802 explains this
approval process.
History Note: Authority G.S. 105-164.14; 105-262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; August 1, 1998; April 1, 1997;
August 1, 1996; October 1, 1993; October 1, 1991; May 1, 1990; February 1,
1997.
17 NCAC 07B .1703 SALES TO STATE
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; July 5,
1980;
Repealed Eff. August 1, 1998.
17 NCAC 07B .1704 GOVERNMENTAL ENTITIES NOT ELIGIBLE FOR
REFUNDS
G.S. 105-164.14(c) lists the governmental entities that are
eligible for refunds of sales and use taxes. A governmental entity that is not
listed in that subsection is not eligible for a refund. The governmental
entities that are not eligible for a refund include the following:
(1) An alcoholic beverage control board.
(2) A community college established under G.S. 115D.
(3) A drainage district.
(4) A housing authority.
(5) The North Carolina Civil Air Patrol, a State agency
created by G.S. 143B-490.
History Note: Authority G.S. 105‑164.6; 105‑164.14;
105‑262;
Eff. February 1, 1976;
Amended Eff. April 1, 1999; October 1, 1993; May 1, 1990;
July 5, 1980.
17 NCAC 07B .1705 HOUSING AUTHORITIES
Sales of taxable tangible personal property to housing
authorities created and existing under Chapter 157 of the North Carolina
General Statutes for use in carrying on their activities are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1, 1991;
August 1, 1988; March 1, 1984.
17 NCAC 07B .1706 PRISON CONCESSION STANDS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264;
Eff. October 1, 1991;
Repealed Eff. October 1, 1993.
17 NCAC 07B .1801 SALES TO AND BY HOSPITALS AND SIMILAR
INSTITUTIONS
(a) General -- Hospitals, sanitariums, nursing homes, and
rest homes are primarily engaged in rendering services and are considered the
users or consumers of all tangible personal property they purchase for use in
connection with these institutions. These institutions are liable for payment
of sales or use tax on their purchases of tangible personal property except as
explained in this Rule.
(b) Food -- Purchases of food by hospitals, sanitariums,
nursing homes, or rest homes for use in furnishing meals to patients are exempt
from State tax, but not the 2% local tax, if the food could be purchased under
the Food Stamp Program. If food purchased by an institution could not be purchased
under that Program, the food is subject to both State and local sales or use
tax. If, in addition to furnishing meals to patients, one of these
institutions operates a cafeteria from which it makes sales of prepared meals
or food to guests, visitors, employees, staff, or other persons, the
institution must register with the Department of Revenue and collect and remit
the tax on its sales. If the food purchased by the institution for use in
furnishing meals to patients cannot be distinguished from the food purchased
for resale through the cafeteria, the institution may purchase all the food
under a certificate of resale. An institution that does this assumes liability
for payment of sales or use tax on food used in furnishing meals to its
patients and on sales of meals by the cafeteria.
(c) Meals to Students -- Meals and food products sold by a
hospital operated by a State or private educational institution to student
nurses are exempt from tax in accordance with G.S. 105-164.13(27).
(d) Purchases for Consumption -- Except as provided by
Paragraph (b) of this Rule, a Certificate of Resale, Form E-590, may not be
used by hospitals, sanitariums, nursing homes, or rest homes when making
taxable purchases of tangible personal property for use or consumption. The
tax due on taxable purchases from North Carolina suppliers or out‑of‑state
suppliers who charge North Carolina sales or use tax must be paid to the
suppliers. An institution that makes taxable purchases from an out-of-state
supplier who does not collect and remit North Carolina sales or use tax must
register with the department and remit monthly the tax due on the purchases.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105-467;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; May 1, 1999; August 1, 1998;
October 1, 1993; October 1, 1991; July 1, 1989.
17 NCAC 07B .1802 REFUNDS TO HOSPITALS AND SIMILAR
MEDICAL FACILITIES
(a) Most Nonprofits -- Hospitals and other medical
facilities that are listed in G.S. 105-164.14(b)(1) through (4) are eligible
for refunds as nonprofit entities. Rule 17 NCAC 7B .0602 addresses refunds for
nonprofit entities.
(b) County and City Facilities -- Sales or use taxes paid on
purchases by hospitals and other medical facilities that are agencies of a
county or city are refundable to the same extent as sales or use taxes paid on
purchases by other nonprofit hospitals, but the county or city must file the
claim for refund. This requirement applies unless the facility has submitted a
written request to the Secretary to file a semiannual refund claim on its own
behalf, rather than have its purchases included in the county’s or city’s
annual refund claim, and the request has been approved by the Secretary. An
approved request becomes effective on the date set by the Secretary and applies
to sales and use taxes paid on or after the effective date.
(c) Other Facilities. - Hospitals and other medical
facilities not covered by Paragraphs (a) and (b) of this Rule are not eligible
for sales and use tax refunds.
History Note: Authority G.S. 105-164.14; 105-262;
105-264;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; August 1, 1998; April 1, 1997;
August 1, 1996; October 1, 1993; October 1, 1991; May 1, 1990; May 1, 1985.
17 NCAC 07B .1803 OXYGEN EQUIPMENT
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .1804 OXYGEN
Sales of oxygen and oxygen dispensing equipment to
hospitals, sanitariums, nursing homes or rest homes for use in administering
oxygen to patients are subject to the applicable statutory state and local
sales or use tax. Sales of oxygen on written prescription of a physician or
dentist are exempt from sales tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article
43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; January 1, 1982.
17 NCAC 07B .1805 HOSPITAL SUPPLIES
Sales of linens, soap, toilet paper, kleenex‑type
tissues, and other supplies to sanitariums, hospitals and similar institutions
and businesses for use are subject to the applicable statutory state and local
sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
SECTION .1900 ‑ TIRE RECAPPERS AND RETREADERS: TIRE AND
TUBE REPAIRS
17 NCAC 07B .1901 TIRE RECAPPING MATERIALS
Charges for materials used by tire recappers
and retreaders in recapping or retreading tires owned by customers are subject
to the sales or use tax. A segregation may be made between the retail charge
for the materials furnished and the charge for labor or services rendered and,
in such case, the tax does not apply to the labor or service charges separately
stated. If no segregation is made between the charges for the materials
furnished and the charges for labor and services performed in connection with
the recapping or retreading job, the Secretary will permit tire recappers and
tire retreaders to collect and remit the tax on 40 percent of the combined
price or charge made for the materials, labor and services as representing the
retail charge for the materials furnished.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .1902 SECONDHAND TIRES
Sales to users or consumers of secondhand tires that have
been recapped or retreaded are subject to sales or use tax on the full sales
price without any deduction whatever on account of any trade‑in credit or
allowance. Sales to users or consumers of unrecapped or unretreaded secondhand
tires are also subject to sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000.
17 NCAC 07B .1903 TIRE REPAIR MATERIALS
Recappers making minor repairs to tires and tubes such as
applying shoes, patches, or plugs are rendering a service, and receipts
therefrom are not subject to sales or use tax. Recappers are liable for
remitting the tax on the cost price of shoes, patches, plugs, valves, dust caps
and similar items of tangible personal property used in making such repairs.
The tax due shall be remitted to the recappers' suppliers at the time of
purchase unless the tire recappers also engage in the business of selling such
items separate and apart from the rendition of services and make the purchases
under a Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form
E-595E. If the property is purchased under a certificate of exemption and
subsequently withdrawn from inventory for use by the recappers in rendering
such services, the tax is due on the cost price of the property when it is
withdrawn from inventory for use.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993.
17 NCAC 07B .1904 SALES BY TIRE RECAPPERS
Sales of shoes, valves, dust caps and similar items separate
and apart from the rendition of services are subject to sales or use tax. When
registered tire recappers purchase such tangible personal property for resale
to their customers, their suppliers shall obtain a Streamlined Sales and Use
Tax Agreement Certificate of Exemption, Form E-595E, in connection with such
sales. If the items that tire recappers generally purchase for use are
purchased by them for the purpose of resale to other recappers, their suppliers
shall secure a certificate of exemption with each such sale to support the
claim for the exemption from the retail tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993.
17 NCAC 07B .1905 SALES TO TIRE RECAPPERS
(a) Sales to tire recappers of camelback or other rubber
products, cement and rubber solvent, cord fabric, wheel weights and other items
of a similar nature which enter into or become an ingredient or component part
of the recapped tires or are attached to and delivered with the tires to the
customer are exempt from tax.
(b) The gross receipts derived by a utility from sales of
electricity to tire recappers for use in connection with the operation of the
recapping plant are subject to tax at the rate set in G.S. 105-164.4. Sales of
other fuel, except piped natural gas, to tire recappers for use in connection
with the operation of the recapping plant are exempt from sales tax. Sales of
piped natural gas are exempt from sales tax and are subject to the excise tax
imposed by Article 5E of G.S. 105.
(c) Sales to tire recappers of mill machinery, or parts and
accessories therefor, for use exclusively in the recapping process are exempt
from sales tax. Sales to contractors and subcontractors of mill machinery or
mill machinery parts and accessories for use by them in the performance of
contracts with manufacturing industries and plants and sales to subcontractors
purchasing mill machinery or mill machinery parts and accessories for use by
them in the performance of contracts encompassed in such contracts with
manufacturing industries and plants are exempt from sales tax. Such mill
machinery or mill machinery parts and accessories must be for use by tire
recappers in the production process, as the term "production" is
defined in 17 NCAC 07D .0102(a)(1), to qualify for the exemption from sales and
use tax when purchased by such contractors or subcontractors. Contractors and
subcontractors may obtain Streamlined Sales and Use Tax Agreement Certificate
of Exemption, Form E-595E, from the Taxpayer Assistance Division, North
Carolina Department of Revenue, to be executed by them and furnished to their
vendors in connection with such purchases as the vendor's authority to apply
the exemption. The following items when sold to tire recappers for use
exclusively in the recapping process are considered to be mill machinery or
mill machinery parts and accessories within the meaning of the Sales and Use
Tax Article:
(1) wire brushes;
(2) mold lube;
(3) curing tubes and rims;
(4) molds and matrices;
(5) buffing equipment;
(6) buffing discs;
(7) buffing rasps;
(8) rasp teeth;
(9) crayons for marking tires;
(10) tire trimmers;
(11) boilers;
(12) tire handling equipment used exclusively
between the beginning and ending steps of the recapping process;
(13) inspection spreaders used exclusively to
inspect casings being recapped;
(14) spinners used for applying cement used on
casings being recapped;
(15) pre‑condensing tanks for air lines used
for applying cement, dusting buffed casings, and inflating curing tubes;
(16) casing balancers used exclusively in
balancing casings to be recapped;
(17) tread builders used to apply tread rubber to
casings being recapped;
(18) air compressors used exclusively in
retreading or recapping process;
(19) dust collectors;
(20) knives, stitchers, rollers, shears, awls,
and splicing tools used to perform work on the ingredient material or the
manufactured product;
(21) thermometers, pyrometers, and durometers used
in testing mold heat and cure hardness of the rubber used in the recapping
process;
(22) bagging and debagging equipment;
(23) sprayers used exclusively in the recapping
process;
(24) matrix loaders;
(25) steam traps and valves used in steam lines
for curing molds; and
(26) mold cleaners.
(d) The following are examples of items which are subject
to the applicable statutory state and local sales or use tax when sold to tire
recappers for use or consumption:
(1) motor vehicle jacks;
(2) tire tools not used between the beginning
and ending recapping processes;
(3) balancing machinery used after recapping
process is completed;
(4) equipment used to remove tires from the rim
before the recapping process begins;
(5) administrative equipment such as office supplies,
file cabinets and other office equipment;
(6) cleaning compounds for janitorial and
sanitary purposes;
(7) uniforms for employees;
(8) advertising materials;
(9) lubricants, repair parts and accessories
for motor vehicles;
(10) inspection bags; and
(11) gloves.
(e) The lists in Paragraphs (c) and (d) of this Rule are
not intended to be exclusive but are for illustrative purposes only. If there
is any question as to the tax status of any item not on the lists, it may be
submitted to the Secretary of Revenue for a determination as to the applicable
rate of tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; July 1, 1999; October 1,
1993; June 1, 1992; October 1, 1991; May 1, 1985.
17 NCAC 07B .1906 SCRAP TIRE DISPOSAL FEE
History Note: Authority G. S. 105‑262; 105‑264;
130A‑309.55; 130A‑309.56;
Eff. October 1, 1990;
Amended Eff. June 1, 1992;
Repealed Eff. October 1, 1993.
17 NCAC 07B .1907 SCRAP TIRE DISPOSAL TAX
(a) The taxable event for tires that are
purchased for the purpose of lease or rental occurs at the time the tires are
purchased and the scrap tire tax is due at that time. The receipts from the
lease or rental of tires are not subject to the scrap tire tax but they are
subject to the sales or use tax. The scrap tire tax shall be computed on the
selling price of the tire including the federal excise tax but excluding the
sales tax.
(b) Purchases of new tires from outside North
Carolina for storage, use or consumption in North Carolina or to be placed on a
vehicle offered for sale, lease or rental are subject to tax at the rate
established in G.S. 105‑187.16(b).
(c) The scrap tire disposal tax is not to be
reported on a tire vendor's sales and use tax report but it is to be reported
on the Scrap Tire Disposal Tax Report, Form E‑500G. Taxpayers who are
making sales or purchases of tires that are subject to the tax in accordance
with the above information must register for this purpose.
History Note: Authority G.S. 105‑187.16; 105‑187.17;
105‑262; 105‑264;
Eff. October 1, 1991;
Amended Eff. October 1, 1993; June 1, 1992.
SECTION .2000 ‑ SALES AND GIFTS BY EMPLOYERS TO
EMPLOYEES OR OTHER USERS
17 NCAC 07B .2001 SALES TO EMPLOYEES
Sales of tangible personal property by any employer,
manufacturer, processor, wholesaler, distributor or jobber to his employees or
others for use or consumption are subject to the applicable statutory state and
local sales or use tax, unless specifically exempt, notwithstanding that such
sales are infrequent or comprise only a small fraction of the vendor's total
business, and every employer, manufacturer, processor, wholesaler, distributor
or jobber making such sales must register with the department and collect and
remit the tax due thereon. The fact that any such vendor only makes sales to
his employees shall not relieve him of this requirement.
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.
17 NCAC 07B .2002 GIFTS TO EMPLOYEES
Gifts of tangible personal property by any employer,
manufacturer, processor, wholesaler, distributor or jobber to his employees or
other persons are subject to the applicable statutory state and local sales or
use tax, unless the donor paid sales or use tax on the sales or purchase price
of the donated property at the time he acquired the same. The tax due by
reason of any such gift shall be paid by the donor and shall be computed on the
donor's cost price of the property donated, irrespective of whether fabricated,
produced, manufactured or processed by the donor, or acquired elsewhere.
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.
Section .2100 – electricity: piped natural gas: bottled gas:
coal: coke: fuel oil: oxygen: acetylene: hydrogen: liquefied petroleum gas and
other combustibles
17 NCAC 07B .2101 ELECTRICITY AND OTHER FUEL
(a) Electricity. - Electricity is tangible personal
property and its sale is subject to tax at the rates set in G.S. 105-164.4.
Local sales and use taxes do not apply to sales or purchases of electricity.
(b) Other Fuel. - The sale of bottled gas, coal, coke, fuel
oil, oxygen, acetylene, hydrogen, liquefied petroleum gas, or another
combustible to a user or consumer is subject to the applicable statutory state
and local tax unless the sale is exempt from tax under G.S. 105‑164.13.
Sales of piped natural gas are exempt from sales tax and are subject to the
excise tax imposed by G.S. 105, Article 5E.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105-164.16; 105‑262; 105-467; Article 39; Article 40;
Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; July 1, 2000; August 1,
1998; October 1, 1993; October 1, 1991; May 1, 1990; August 1, 1986.
17 NCAC 07B .2102 SAWDUST USED AS FUEL
Sales of sawdust to manufacturing plants for use as a fuel
in connection with the manufacturing operation are exempt from sales and use
tax.
History Note: Authority G.S. 105-164.13; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009.
17 NCAC 07B .2103 PROPANE SOLD TO SCHOOLS
Sales of propane gas to public and private schools for use
or consumption are subject to the applicable statutory state and local sales or
use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .2104 LP GAS SOLD TO FARMERS
Sales of liquefied petroleum gas to a poultry farmer for use
in chicken brooders are exempt from sales and use tax.
History Note: Authority G.S. 105-164.13; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009.
17 NCAC 07B .2105 AVIATION FUEL
Sales of aviation gasoline and other aviation fuel to users
or consumers in this state are subject to the applicable statutory state and
local sales or use tax. The federal tax on aviation gasoline or other aviation
fuels which is levied by Chapter 32, Section 4081, of the Internal Revenue Code
and the federal super fund tax are imposed on gasoline sold by any producer,
terminal operator or importer of gasoline and shall be included in the sales
price of aviation gasoline on which North Carolina sales tax is due. The
federal tax on noncommercial aviation gasoline and the federal tax on liquids
sold for use or used for fuel in noncommercial aviation as levied by the
provisions of Chapter 31, Section 4041, of the Internal Revenue Code, are taxes
imposed at the retail level and these taxes are not includable in the sales
price upon which North Carolina sales tax is due.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; October 1, 1990; January 3, 1984.
section .2200 - FOOD AND FOOD PRODUCTS FOR HUMAN CONSUMPTION
17 NCAC 07B .2201 FOOD AND FOOD PRODUCTS
(a) General. - All retail sales of food or food products
are subject to applicable statutory State and local sales or use tax unless a
statute exempts the sales from tax. G.S. 105-164.13B lists the food that is
exempt from State tax, but not the two percent local tax.
(b) Exempt Cafeteria Food. - The schools, institutions, and
organizations whose sales of food and meals are exempt under G.S. 105-164.13(26),
(26a), or (27) are not required to register with the Department. Therefore,
unless one of these entities is otherwise required to register with the
Department by reason of making other sales or purchases subject to the sales or
use tax, it cannot furnish a Streamlined Sales and Use Tax Agreement
Certificate of Exemption, Form E-595E, to its suppliers. When making purchases
of food to be sold, one of these entities that is not registered must give the
supplier information to the effect that the food purchased is to be sold by the
entity's school cafeteria or dining room, and the supplier must enter this
information on its records and on the sales invoices. Otherwise, the
transactions may be subject to the tax. Registered schools, institutions, and
organizations must furnish a properly executed Streamlined Sales and Use Tax
Agreement Certificate of Exemption, Form E-595E, to a supplier to purchase food
without paying tax on the purchase.
History Note: Authority G.S. 105‑164.4;
105-164.6; 105‑164.13; 105‑262; 105-467; Article 39; Article 40;
Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; August 1, 2002; May 1, 1999;
August 1, 1998; October 1, 1993; October 1, 1991; February 1, 1986; May 11,
1979.
17 NCAC 07B .2202 DISPOSABLE LUNCHROOM SUPPLIES
Sales to school lunchrooms and dining rooms of disposable
items such as paper cups, paper napkins and drinking straws which actually
contain or otherwise accompany the sale or service of the food and which are
actually used by the students in consuming the meals are exempt from the tax.
This exemption does not include brooms, mops, soaps, chinaware, silverware and
other equipment or supplies, and sales of this nature are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .2203 EMPLOYEES' MEALS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; February
1, 1986;
Repealed Eff. July 1, 1994.
17 NCAC 07B .2204 MEALS ON TRAINS: PLANES: ETC.
Sales of prepared foods or meals by railroads, Pullman cars, steamships, airlines or other transportation company diners, while within
this state, are subject to the applicable statutory state and local sales or
use tax.
History Note: Authority G.S. 105‑164.4; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .2205 CATERERS
All charges by persons engaged in the catering business that
are connected with the furnishing, preparing or serving of meals, foods, and
other tangible personal property to users or consumers are subject to the
applicable statutory state and local sales or use tax. If such persons perform
other services that are not a part of the charges for the furnishing, preparing
or serving of meals, foods, and other tangible personal property, the charges
for such services rendered are exempt from tax provided such charges are
separately stated from the charges for the tangible personal property on the
invoice given to the customer at the time of the sale and in the vendor's
records; otherwise, the total amount is subject to the tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; July 5, 1980.
17 NCAC 07B .2206 GRATUITIES
History Note: Authority G.S. 105‑164.4; 150‑164.13A;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980;
Repealed Eff. February 8, 1981.
17 NCAC 07B .2207 FOOD SERVICE SUPPLIES
Paper doilies, paper place mats, paper coasters, paper
napkins, drinking straws and similar disposable items which become a part of
the sale or service of food and are expended by customers in consuming their
meals are exempt from sales or use tax when sold to school lunchrooms,
restaurants, cafes, cafeterias and other such places of business selling and
serving prepared meals and foods. Sales of plastic or cloth place mats, cork,
plastic or china coasters, china, silverware, cloth napkins, tablecloths or
other reusable items to restaurants, cafes, cafeterias and other similar places
of business for use in serving meals and not for resale are subject to the
applicable statutory state and local sales or use tax. Sales of patty paper and
paper containers to restaurants for use in storing food are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; July 5, 1980.
17 NCAC 07B .2208 FRATERNITY AND SORORITY MEALS
Fraternities and sororities are considered to be student
organizations within the meaning of G.S. 105‑164.13(27) and when
fraternities and sororities operate dining rooms which serve meals or
foodstuffs to students at educational institutions, such meals and food
products are exempt from sales tax. Since fraternities and sororities are not
required to collect and remit tax on sales of meals to students, most
fraternities and sororities are not registered for sales tax purposes and
cannot furnish a properly completed Streamlined Sales and Use Tax Agreement
Certificate of Exemption, Form E-595E,in connection with their purchases.
Firms making sales of foodstuffs to the above-described dining rooms shall make
a notation on their bills of sale to the effect that the sales are to
fraternity and sorority dining rooms. This information will suffice as a
certificate of exemption.
History Note: Authority G.S. 105‑164.13; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993.
17 NCAC 07B .2209 SCHOOL STORES' SALES
Sales of tangible personal property by school
stores to students and other users or consumers are subject to sales tax. Such
school stores must register with the Department of Revenue and collect and
remit the tax on such sales.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993.
17 NCAC 07B .2210 MEALS AT SUMMER CAMPS
(a) Summer camps that make a weekly or
monthly charge to persons who are enrolled in the courses or activities carried
on by the summer camps are not liable for collecting tax on such charges. Such
organizations are liable for payment of the tax on their purchases of food and
other tangible personal property for use in the operation of the camps.
(b) Camps that operate cafeterias or
restaurants where they make sales of meals and other tangible personal property
to students or other users or consumers shall register and collect and remit
the tax on the sales price of such property. Camps where rooms, lodgings or
accommodations are regularly furnished to transients for a consideration are
deemed to be retailers and must collect and remit the tax on such receipts.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; July 5, 1980.
17 NCAC 07B .2211 COVER CHARGE
Cover charges, as such, are not subject to
sales tax when separately stated. That portion of a minimum charge which
represents tangible personal property that is delivered to the customer is
subject to tax and shall be separated from the unused portion of any minimum
charge; otherwise, the total charge is subject to the tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993.
17 NCAC 07B .2212 SEAFOODS
A person who purchases fish or other seafood and sells them
at retail is liable for collecting the two percent local sales or use tax on
the sales unless the sales are considered prepared food as defined in G.S.
105-164.3(28). Prepared food is subject to the applicable statutory state and
local sales and use tax. Sales of fish and seafood are exempt when sold in
their original or unmanufactured state by a fisherman in his capacity as a
fisherman.
History Note: Authority G.S. 105-164.4; 105-164.13; 105-262;
105-467; Article 39; Article 40; Article 42;
Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; May 1, 1999; August 1, 1998;
October 1, 1993; October 1, 1991.
17 NCAC 07B .2213 SERVICE CHARGE
A service charge is exempt from sales tax under G.S.
105-164.13A only if it meets the conditions in that statute. If a service
charge does not exceed 20% of the sales price and personnel who are not
directly involved in the service of food, beverages, or meals receive part of
the service charge, then none of the service charge is exempt. If a service
charge exceeds 20% of the sales price and personnel who are directly involved
in the service of food, beverages, or meals receive an amount equal to 20% of the
sales price, the amount received by them is exempt if the service charge is
separately stated as required by G.S. 105-164.13A. In this circumstance, if
the personnel who are directly involved do not receive an amount equal to 20%
of the service charge, then none of the charge is exempt. The amount of a
service charge that exceeds 20% of the sales price is subject to tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13A; 105‑262;
Eff. January 3, 1984;
Amended Eff. July 1, 2000; October 1, 1993.
SECTION .2300 ‑ SALES TO OUT‑OF‑STATE
MERCHANTS FOR RESALE
17 NCAC 07B .2301 IN GENERAL
(a) For the purpose of the Sales and Use Tax Law, the term
"registered nonresident retail or wholesale merchant" means a person
who does not have a place of business in this State, is engaged in the business
of acquiring by purchase, consignment or otherwise, tangible personal property
and selling the property outside this State and is registered for sales and use
tax purposes in a taxing jurisdiction outside this State.
(b) Sales of tangible personal property to registered
nonresident retail or wholesale merchants for resale are exempt from the North Carolina sales tax, if all of the following conditions are met:
(1) The wholesale merchant who sells tangible
personal property for resale delivers to the nonresident retail or wholesale
merchant a bill of sale for each sale of merchandise whether sold for cash or
on credit, itemizing therein the various articles of tangible personal property
included in said sale, and makes and retains a duplicate or carbon copy of each
such bill of sale, and keeps a file of all such duplicate bills of sale for at
least three years from the date of sale.
(2) The character of such tangible personal
property is such as the nonresident retail or wholesale merchant ordinarily and
customarily purchases as a part of his stock for resale.
(3) The nonresident retail or wholesale
merchant is registered for sales and use tax purposes in a taxing jurisdiction
outside this State and furnishes each wholesale merchant with a Streamlined
Sales and Use Tax Agreement Certificate of Exemption, Form E-595E, certifying
that he is a registered nonresident retail or wholesale merchant, and further
certifying that the tangible personal property purchased by him from the
wholesale merchant is purchased for the purpose of resale at retail or
wholesale in accordance and compliance with the laws of the jurisdiction in
which he resides or does business. Such Form E-595E, when completed and
executed by the nonresident retail or wholesale merchant and delivered to the
supplier, shall be deemed sufficient evidence that such nonresident retail or
wholesale merchant is duly registered in a taxing jurisdiction outside this
State and is engaged in the business of a retail or wholesale merchant
purchasing tangible personal property at wholesale for legitimate sale in the
taxing jurisdiction in which he resides or does business.
(c) The exemption in Paragraph (b) of this Rule shall apply
only to sales of tangible personal property to nonresident retail or wholesale
merchants for resale who comply with the terms and conditions hereof, and shall
not be construed to apply to any sales of tangible personal property to users
or consumers not for resale irrespective of the price, quantity or any other
circumstances or conditions pertaining to such sale. Failure to comply with
the provisions of this requirement shall subject the vendor to liability for
the applicable rate of tax upon all sales which do not conform to this Rule.
History Note: Authority G.S. 105‑164.3; 105‑164.5;
105‑262;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; February 1, 1988.
17 NCAC 07B .2302 INTERSTATE SALE
Sales made by merchants in North Carolina to out‑of‑state
purchasers where actual delivery of the property is made by the resident vendor
to such nonresident vendee at a point beyond the boundaries of this state and actual
possession is retained by the vendor until delivery is made, or where the
delivery is made by a resident vendor to a common carrier for delivery to such
nonresident vendee at a destination beyond the boundaries of this state, are
sales in interstate commerce. Streamlined Sales Tax Agreement Certificates of
Exemption, Form E-595E, are not required for sales in interstate commerce.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; February 1, 1988.
17 NCAC 07B .2303 REGISTRATION: WHOLESALER'S
RESPONSIBILITY
History Note: Authority G.S. 105‑164.3; 105‑164.5;
105‑262;
Eff. February 1, 1976;
Repealed Eff. February 1, 1988.
17 NCAC 07B .2401 SALES OF MEDICAL SUPPLIES AND
EQUIPMENT TO VETERINARIANS
A veterinarian is a physician. Therefore, sales to a
veterinarian of medical instruments, laboratory equipment, medical supplies,
and medical equipment used to diagnose, prevent, treat, or cure disease are
subject to applicable State and local sales or use tax. Rule 17 NCAC 7B .1404
lists medical items that are subject to tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; August 1, 1996; April 1, 1995;
October 1, 1993; October 1, 1991; August 1, 1986.
17 NCAC 07B .2402 SALES BY VETERINARIANS
Sales by veterinarians are subject to sales or use tax
unless a specific exemption applies to the sale. A veterinarian who makes
taxable retail sales must register with the Department and file sales and use
tax returns. A veterinarian who is registered with the Department may obtain a
Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form E-595E.
The certificate can be used to purchase, without payment of tax, items the
veterinarian is purchasing for resale. If a veterinarian uses an item, such as
flea powder, soap, or pet food, in providing professional services and also
sells the same type of item, the veterinarian may not know when purchasing the
item whether the veterinarian will use the item or sell it. For items of this
type, the veterinarian may use the Streamlined Sales and Use Tax Agreement
Certificate of Exemption, Form E-595E, to purchase the item without payment of
tax. The veterinarian is then liable for remitting the applicable use tax, if
the veterinarian uses the item, or the applicable sales tax, if the
veterinarian sells the item.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; July 1, 2000; June 1, 1992;
August 1, 1986; May 11, 1979.
SECTION .2500 ‑ FURNITURE AND STORAGE WAREHOUSEMEN
17 NCAC 07B .2501 WAREHOUSEMEN SERVICES
Receipts derived from services rendered by warehousemen in
moving, storing, packing and shipping tangible personal property belonging to
other persons are not subject to the tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .2502 MOVING AND PACKING MATERIALS
Crating, boxing, packaging and packing materials purchased
by warehousemen to be used by them in moving, storing, packing or shipping
tangible personal property are subject to the applicable statutory state and
local sales or use tax.
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.
17 NCAC 07B .2503 SECONDHAND FURNITURE
Except as provided in 17 NCAC 7B .2504, sales by
warehousemen of secondhand furniture or other tangible personal property to
which they have acquired title are subject to the applicable statutory state
and local sales or use tax and warehousemen making such sales must register
with the department and collect and remit the tax due on such sales.
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.
17 NCAC 07B .2504 SALES TO SATISFY LIENS
Sales made at auction by warehousemen to satisfy their liens
existing on account of any moving, storing or other service charge are deemed
to be occasional or isolated sales and are not subject to the tax.
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976.
SECTION .2600 ‑ LIABILITY OF CONTRACTORS: USE TAX ON
EQUIPMENT BROUGHT INTO STATE: BUILDING MATERIALS
17 NCAC 07B .2601 USE TAX ON EQUIPMENT BROUGHT INTO
STATE
History Note: Authority G.S. 105‑164.6; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; May 1,
1990; December 1, 1984;
Repealed Eff. August 1, 1996.
17 NCAC 07B .2602 CONTRACTORS, SUBCONTRACTORS, AND
RETAILER-CONTRACTORS
(a) Contractors are considered the consumers of tangible
personal property they use in fulfilling contracts and are liable for payment
of applicable statutory State and local sales or use taxes on the property.
When a contractor or a subcontractor purchases taxable tangible personal
property from a supplier outside this State who collects applicable statutory
State and local sales and use taxes, the contractor must remit the tax to the
supplier. When a contractor or subcontractor purchases taxable tangible
personal property for use in this State from a supplier outside this State who
does not collect the applicable State and local sales and use taxes, the
contractor or subcontractor must remit the tax directly to the Department.
(b) The term retailer‑contractor shall mean any
person who engages in the business of selling building materials, supplies,
equipment, and fixtures at retail and, in addition to such business, enters
into contracts for constructing, building, erecting, altering or repairing
buildings or other structures, and for the installation of equipment and
fixtures to buildings and, in the performance of such contracts, consumes or
uses such materials or merchandise. When a retailer‑contractor as herein
defined makes purchases of the above‑named tangible personal property, a
part of which he will use in performing contracts and a part of which he will
sell at retail, the retailer‑contractor shall furnish his supplier a Streamlined
Sales and Use Tax Agreement Certificate of Exemption, Form E-595E. The
supplier shall keep the certificate for his records as his authority for not
charging tax on the transaction. The retailer‑contractor then becomes
liable for remitting, directly to the department, tax on the sales price of any
tangible personal property sold at retail, and tax on the cost price of any
tangible personal property used in the performance of a contract.
(c) Sales to contractors and subcontractors purchasing mill
machinery or mill machinery parts and accessories for use by them in the
performance of contracts with manufacturing industries and plants and sales to
subcontractors purchasing mill machinery or mill machinery parts and
accessories for use by them in the performance of contracts encompassed in such
contracts with manufacturing industries and plants are exempt from sales and
use tax. Such mill machinery or mill machinery parts and accessories must be
for use by a manufacturing industry or plant in the production process, as the
term "production" is defined in 17 NCAC 07D .0102(a)(1), to qualify
for the exemption when purchased by such contractors or subcontractors.
Contractors and subcontractors may obtain the Streamlined Sales and Use Tax
Agreement Certificate of Exemption, Form E-595E, from the Taxpayer Assistance
Division, North Carolina Department of Revenue, to be completed by them and
furnished to their vendors in connection with such purchases as the vendors'
authority to apply the exemption from sales and use tax thereto.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; August 1, 2002; October 1,
1993; June 1, 1992; October 1, 1991; February 8, 1981.
17 NCAC 07B .2603 WEIGH HOPPERS SOLD TO CONTRACTORS
Sales of asphalt plants, concrete plants, weigh hoppers or
other equipment to contractors who produce concrete or asphalt for use in
fulfilling their contracts are taxable at the applicable statutory state and
local sales or use tax, and no maximum tax is applicable thereto.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; December 1, 1984; July 5, 1980.
17 NCAC 07B .2604 SAND: STONE SOLD TO CONTRACTORS
Sales of sand, dirt, and stone to contractors or other users
or consumers or to nonregistered merchants are subject to the applicable
statutory state and local sales or use tax unless such property is sold in its
original or unmanufactured state by the producer in his capacity as a producer.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article
43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .2605 SANDBLAST SAND SOLD TO CONTRACTORS
Sales of sandblast sand to contractors for use in the
performance of contracts to clean ships, buildings, etc., are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .2606 PRE‑FABRICATED BUILDINGS:
CONTRACTORS
Sales of pre‑fabricated buildings to contractors,
builders, or other users or consumers in this state are subject to the applicable
statutory state and local sales or use tax. A pre-fabricated building is not
a modular home as defined under G.S. 105-164.3(21b).
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1991; October 1, 1990.
17 NCAC 07B .2607 SUBCONTRACTORS
Subcontractors are liable for payment of the applicable
statutory state and local sales or use tax on the taxable tangible personal
property which they purchase for use in fulfilling their subcontracts unless
such property is exempt from sales and use tax.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-262;
Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; October 1,
1991; July 5, 1980.
17 NCAC 07B .2608 PLUMBING: HEATING CONTRACTORS:
PURCHASES
Contractors are deemed to be the users or consumers of
building materials and other tangible personal property which they use in the
performance of lump‑sum, cost‑plus or time and material contracts
to furnish and install a plumbing, heating, air conditioning or electrical
system or which they use in making repairs, alterations or additions to an
existing system. Contractors are therefore liable for payment of the applicable
statutory state and local sales and use tax on their purchases of such
property. The tax paid on such purchases is a part of the cost of the property
and may be recovered in the contract price; however, the tax shall not be
charged as a separate item to the property owner. Contractors must also pay
the tax on purchases of property which they resell unless such contractors have
been classified by the Department of Revenue as retailer‑contractors and
have been authorized to use the Streamlined Sales and Use Tax Agreement
Certificate of Exemption, Form E-595E. The tax due on all purchases by
contractors shall be paid to the suppliers unless the purchases are made from
out‑of‑state vendors who do not collect North Carolina sales or use
tax. Contractors must remit the tax on such out‑of‑state purchases
directly to the Department of Revenue.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .2609 PLUMBING: HEATING CONTRACTORS: SALES
(a) Contractors who do not sell at retail in the regular
course of business are not required to collect tax by reason of occasional or
isolated retail sales. However, those contractors who have not been classified
as retailer‑contractors, but who regularly or consistently make retail
sales are liable for collecting and remitting the tax on the sales price of the
property. This includes items sold across‑the‑counter such as
materials, supplies and fixtures as well as appliances such as refrigerators,
ranges and water heaters which the contractors might install as a part of the
sale. Contractors making sales of this nature must register with the
Department and pay tax monthly on such sales. Since contractors are not
eligible to execute certificates of resale, they will have to pay tax on their
purchases to the suppliers; however, the tax paid on the purchase price of
property which is resold may be deducted on the monthly returns from the tax
due on the sales price of such property.
(b) Any contractor required to remit tax on his sales who
feels that he should be classified as a retailer‑contractor should submit
full particulars regarding the nature of his business to the Secretary for a
determination of his classification.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .2610 PLUMBING: HEATING RETAILER‑CONTRACTORS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .2611 BUILDING MATERIALS
All building materials, supplies, fixtures, and equipment of
every kind and description that become a part of or are annexed to any building
or other structure are subject to applicable State and local sales and use taxes.
Vendors of these items must register and collect and remit the tax on their
sales to contractors and other users or consumers.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105‑264;
Eff. February 1, 1976;
Amended Eff. August 1, 2002; October 1, 1993; June 1,
1992; October 1, 1991; February 1, 1988.
17 NCAC 07B .2612 LUMBER SOLD TO COMMERCIAL FISHERMEN
Sales to commercial fishermen of lumber or other boat
components or parts for use by them in building or repairing boats for their
use in the taking or catching commercially of shrimp, crab, oysters, clams,
scallops and fish, both edible and nonedible, are exempt from sales and use
taxes under the provisions of G.S. 105‑164.13(9).
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
SECTION .2700 ‑ DENTISTS: DENTAL LABORATORIES AND DENTAL
SUPPLY HOUSES
17 NCAC 07B .2701 SALES TO DENTISTS AND ORTHODONTISTS
Dentists and orthodontists are deemed to be the users or
consumers of tangible personal property which they purchase for use in rendering
professional services. With the exception of false teeth and orthopedic
appliances which are specifically exempt from tax, all sales of tangible
personal property to dentists and orthodontists, including dental supplies,
equipment, furnishings and other property, such as materials which dentists
fabricate into false teeth, are subject to the four percent state tax and any
applicable local sales or use tax. The term "false teeth" includes
dentures and artificial restoration of teeth; however, as stated in this Rule,
the exemption for false teeth does not apply to sales of materials to dentists
which they use in fabricating false teeth. The term "orthopedic
appliances" includes headgear, bows, neckstraps, wires, bands, brackets,
rubber bands and jackscrews when such items are purchased by orthodontists to
be assembled into various types of appliances to be worn on the person of the
owner or user and other orthopedic appliances when the same are designed to be
worn on the person of the owner or user.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991; January 3,
1984; November 1, 1982.
17 NCAC 07B .2702 SALES TO DENTAL LABORATORIES
(a) Sales to dental laboratories of tangible personal
property which becomes a component part of false teeth, dentures or artificial
restoration of teeth being fabricated by such laboratories are not subject to
sales or use tax.
(b) Sales to dental laboratories of machinery and
equipment, and accessories thereto for use directly in the fabricating of false
teeth are subject to the one percent rate of sales or use tax with a maximum
tax of eighty dollars ($80.00) per article. Sales to contractors and
subcontractors purchasing such machinery and equipment or parts and accessories
thereto for use by them in the performance of contracts with dental
laboratories and sales to subcontractors of such machinery and equipment or
parts and accessories thereto for use by them in the performance of contracts
encompassed in such contracts with dental laboratories are taxable at the one
percent rate of sales or use tax, subject to a maximum tax of eighty dollars
($80.00) per article where applicable when the machinery and equipment or parts
and accessories thereto are used by such dental laboratories directly in the
fabricating of false teeth. Contractors and subcontractors may obtain
Contractor's and Subcontractor's Certificate, Form E‑580, from the Office
Services Division, Taxpayer Assistance Section, North Carolina Department of
Revenue, to be executed by them and furnished to their vendors in connection
with such purchases as the vendor's authority to apply the one percent rate of
tax thereto.
(c) Sales to dental laboratories of tangible personal
property which does not become a component part of false teeth, or which is not
used directly in the fabricating of the false teeth are subject to the four
percent state and any applicable local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; 105‑264;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; June 1, 1992; October 1,
1991; January 1, 1982.
17 NCAC 07B .2703 DENTAL SUPPLY HOUSES
Dental supply houses making taxable sales are required to
register with the Department and collect and remit the tax on such sales.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
section .2800 – florist: nurserymen: greenhouse operators and
farmers
17 NCAC 07B .2801 FLORISTS: NURSERYMEN: GREENHOUSE
OPERATORS AND FARMERS
(a) Retail sales of wreaths, bouquets and similar items are
subject to the applicable statutory state and local sales or use tax.
(b) Retail sales of flowers, potted plants, shrubbery and
similar nursery stock and retail sales of fruits, vegetables and other farm
products are subject to the applicable statutory state and local sales or use
tax unless the product in question is a product of the farm and is sold in its
original state by the producer of the product who is not primarily a retail
merchant at the location where the product is sold.
(c) For the purpose of the exemption afforded by G.S. 105-164.13(4b),
nurserymen and greenhouse operators are considered to be farmers. Nursery
stock which is not sold during the season in which it was purchased by the
nurserymen, greenhouse operators and other farmers but is retained until the
next season and growth is added thereto by virtue of such retention is
considered to be a product of the farm and is exempt from sales and use taxes
when sold by such nurserymen, greenhouse operators or farmers who are not
selling primarily as retail merchants.
(d) Nurserymen, greenhouse operators and other types of
farmers that make retail sales of farm products that they have produced which
are in their original state are not liable for collecting and remitting sales
tax on these sales unless they are selling primarily in their capacity as
retail merchants. Such vendors are selling primarily as producers when the
total dollar sales volume of their produced farm products in the original state
regularly exceeds fifty percent of the total dollar sales volume of their purchased
products and their produced products. Such vendors are selling primarily in
their capacity as retail merchants when their total dollar sales volume of
purchased products regularly exceeds fifty percent of the total dollar sales
volume of their purchased and produced products. Such classification shall
remain in effect until either category of sales on a regular basis has changed
to another principal type. If such producer‑vendors operate more than
one location, the preceding is applicable to the total dollar sales volume of
each location separately. The total dollar sales volume to be used in
determining the classification of "producer" or "retail
merchant" shall include all sales of tangible personal property without
regard to any items or sales that might otherwise be exempt from tax by the
Sales and Use Tax Statutes.
(e) If such vendors are not classified primarily as retail
merchants on the basis of the total dollar sales volume, sales of their
produced products in the original state are exempt from tax; however, retail
sales of any farm products or any other taxable merchandise acquired by
purchase are subject to any applicable tax. If such vendors are classified
primarily as retail merchants on the basis of the total dollar sales volume, they
shall be liable for tax accordingly; i.e., all retail sales of both types of
products shall be subject to the tax unless specific sales are statutorily
exempt from tax.
(f) When vendors who are not primarily retail merchants
make sales of farm products produced by them and products acquired by purchase,
separate records must be maintained of sales of products produced by them.
Records of purchased products, as well as sales thereof, must be kept and
maintained in a manner that can be accurately and conveniently checked by the
agents of the Secretary of Revenue; otherwise, all sales are subject to the
tax.
(g) Producers making taxable sales must register with the
Department of Revenue for the purpose of collecting and remitting the tax due
thereon.
(h) When nurserymen, greenhouse operators, florists or
other persons make taxable sales of shrubbery, young trees or similar items,
and as a part of the transaction transplant them to the land of the purchaser
for a lump sum or a flat rate, the entire amount of the transaction is subject
to the applicable statutory state and local sales or use tax unless such
vendors segregate on the invoice that portion of the charge which is for the
property sold and that portion of the charge which is for transplanting.
(i) For the purpose of the exemption afforded by G.S.
105-164.13(4b), nurserymen and greenhouse operators are considered to be
farmers; therefore, the fact that they may be selling tangible personal
property primarily as a retailer and not as a producer does not preclude their
purchases of tangible personal property for use from any exemption listed in
G.S. 105-164.13. 17 NCAC 07B .1101 provides additional information regarding exemptions.
History Note: Authority G.S. 105‑164.4;
105-164.4A; 105‑164.6; 105‑164.13; 105‑262; Article 39;
Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. June 1, 2006;July 1, 2000; October 1, 1993;
June 1, 1992; October 1, 1991;
March 1, 1987.
17 NCAC 07B .2802 FLORISTS' DELIVERY ASSOCIATIONS
The tax due on transactions conducted through a florists'
delivery association must be collected and remitted to the Department pursuant
to the following principles:
(1) All delivery and service charges associated with
taxable sales of flowers or other tangible personal property in North Carolina, whether delivered to the purchaser or to a person other than the purchaser,
are considered to be a part of the sales price and subject to the applicable
statutory state and local sales or use tax.
(2) Service or relay charges to purchasers for orders
accepted in North Carolina and forwarded to other florists through a florist
delivery association, regardless of whether the charges are separately stated
on the bill to the purchaser, constitute a part of the sales price and are
subject to the applicable statutory state and local sales or use tax.
(3) A North Carolina florist receiving orders from
other florists within or without North Carolina for delivery within or without North Carolina is not liable for any tax on the receipts derived from these transactions.
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. June 1, 2006; April 1, 1999; October 1,
1993; October 1, 1991; March 1, 1987.
section .2900 – vending machines
17 NCAC 07B .2901 SALES THROUGH VENDING MACHINES
(a) Requirement -- A person who sells tangible personal
property through a vending machine must register with the Department and remit
sales tax on the sales price of the property sold, unless the sale is exempt
from tax. The sale of an item in a vending machine for one cent is exempt from
tax.
(b) Sales Price -- The "sales price" of an item
sold in a vending machine differs depending on the item. For tobacco products
sold through vending machines, the sales price is 100% of the price at which
the item is sold in the vending machine. For all other items, the sales price
is 50% of the price at which the item is sold in the vending machine. A
vending machine retailer may calculate receipts from items sold, separate the
receipts from items that are taxable at 100% of their price from those that are
taxable at 50% of their price, and then divide the receipts by the appropriate
number to determine the amount of receipts on which sales tax is due.
History Note: Authority G.S. 105-164.3; 105‑164.4;
105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article
43; Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; July 1, 2000; October 1,
1993; June 1, 1992; July 1, 1989.
17 NCAC 07B .2902 SALES OF VENDING MACHINES
Sales of vending machines to any person for use are subject
to the applicable statutory state and local sales or use tax. The lease or
rental of vending machines to users are subject to the applicable statutory
state and local sales or use tax. Sales of vending machines to registered
merchants for leasing purposes or for the purpose of resale are not subject to
the tax when supported by properly executed Streamlined Sales Tax Agreement
Certificates of Exemption, Form E-595E.
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.
17 NCAC 07B .2903 EXCLUSION OF TAX FROM RECEIPTS
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976;
Amended Eff. March 1, 1993; July 1, 1989; August 1, 1988;
July 5, 1980;
Repealed Eff. July 1, 2000.
17 NCAC 07B .3001 TRADE‑INS
Sales or use tax must be computed and paid on the full gross
sales price of a new article without any deduction for any trade‑in
credit or allowance. The sale of a used article by the vendor who accepted it
in trade as a credit or part payment on the sale of a new article is also
subject to tax at the gross sales price.
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; June 1, 1995; October 1, 1993;
May 1, 1990; January 3, 1984.
17 NCAC 07B .3002 REPOSSESSIONS
Retailers shall not deduct from their gross taxable sales
the unpaid amounts on repossessed merchandise. However, where a retailer
repossesses an article of tangible personal property pursuant to either a
limited or full recourse endorsement by such retailer to a financing
institution and he resells such tangible personal property to recover the
unpaid sales price, such resale is not subject to sales tax provided the sales
tax was paid on the gross sales price of the initial sale. Otherwise, the sale
of any repossessed article is subject to the applicable statutory state and
local sales or use tax. The full gross sales price of any used article taken
in trade by the vendor as a credit or part payment of the sales price of such
nontaxable repossessed article is subject to the applicable statutory state and
local sales or use tax when sold at retail.
History Note: Authority G.S. 105‑164.13; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; May 1, 1990; January 3, 1984.
17 NCAC 07B .3003 RETURNED MERCHANDISE
If an article
sold is returned and the sale is rescinded by a refund of the entire amount
paid including tax, the vendor is entitled to obtain a refund of or credit for
the sales or use tax paid to the Department by reason of the initial sale of
such merchandise. The records of the taxpayer must clearly reflect and support
his claim for any such refund or credit.
History Note: Authority G.S. 105‑164.41; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .3004 SECONDHAND PROPERTY
(a) Tax Status -- The original stock in trade of a retailer
is not limited to newly manufactured articles. Therefore, the fact that
property is used or secondhand does not exempt it from sales or use tax.
Retail sales of secondhand property acquired by any means other than
repossession are subject to sales or use tax.
(b) Purchases -- When a vendor acquires property in any of
the following circumstances, the property is considered to have been purchased
and is therefore subject to tax:
(1) the vendor reacquires property that is
collateral for a nonrecourse endorsement given by the vendor to a financial
institution; or
(2) the vendor accepts secondhand or other
property in lieu of commissions.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; October 1, 1993; October 1,
1991; January 3, 1984.
17 NCAC 07B .3005 REPAIR PARTS FOR USED PROPERTY
Sales of repair parts to registered merchants for use in
reconditioning used property for sale to other registered merchants for resale
are exempt from tax when such parts are sold pursuant to a Streamlined Sales
and Use Tax Agreement Certificate of Exemption, Form E-595E.
History Note: Authority G.S. 105‑164.5; 105‑262;
Eff. February 1, 1976;
Amended Eff. May 1, 2009.
17 NCAC 07B .3006 PARTS FROM JUNKED AUTOS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980;
Repealed Eff. January 1, 1982.
17 NCAC 07B .3007 REPAIR PARTS FOR EXEMPT PROPERTY
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. May 1, 1990.
17 NCAC 07B .3008 TRADE‑UP: SALES OF USED ARTICLES
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .3009 TRANSFER OF REPOSSESSED ITEMS TO NEW
BUSINESS
A repossessed item that is in the inventory of a business
and would be exempt under G.S. 105-164.13(16) if sold by the business becomes
taxable when the business dissolves and transfers its inventory to a successor
business entity. This applies to all business reformulations except a merger
of two or more business entities in which the inventory is transferred to the
surviving business entity.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 2000; October 1, 1993; October 1,
1991; November 1, 1982.
17 NCAC 07B .3010 TRADE‑INS ON EXEMPT SALES
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991;
Repealed Eff. July 1, 2000.
17 NCAC 07B .3011 USED PROPERTY SOLD FOR REPAIR CHARGES
The retail sale of taxable tangible personal property that
is left with merchants for repair or storage and is sold to satisfy repair or
storage charges because the owners fail to reclaim it within a stipulated
period of time is subject to the applicable statutory state and local sales or
use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3012 TRADE: GRAIN FOR FLOUR
Bags of flour or corn meal given by a miller to a customer
in exchange for grain which is placed in the miller's inventory does not
constitute a taxable transaction. The charge by a miller to mill a customer's
own grain which is returned to the customer is not subject to sales tax. Grain
bartered for dissimilar merchandise is subject to the applicable statutory
state and local sales or use tax on the usual retail selling price of the
merchandise received for the grain.
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3013 USED PARTS FROM JUNKED PROPERTY
Retail sales of used parts that have been removed from
junked tangible personal property, including motor vehicles, by persons engaged
in the business of selling the parts are subject to the applicable sales tax.
When repossessed articles are dismantled and their parts are sold at retail,
the parts have lost their identity as repossessed articles and are subject to
tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. March 1, 1993;
Amended Eff. July 1, 2000.
SECTION .3100 ‑ RADIO AND TELEVISION STATIONS: MOTION
PICTURE THEATRES
17 NCAC 07B .3101 RADIO AND TELEVISION: ETC. RECEIPTS
Receipts of radio and television companies for the
broadcasting or telecasting of programs are not subject to sales or use tax. Receipts
of motion picture theatres derived from admission charges are not subject to
sales or use tax. Motion picture theatres making taxable sales of tangible
personal property through concession stands or otherwise must register with the
department and must collect and remit the applicable statutory state and local
sales or use tax on such sales.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3102 BROADCASTING EQUIPMENT
(a) Sales of broadcasting equipment and parts and
accessories thereto and towers to commercial radio or television companies
which operate under the regulation and supervision of the Federal
Communications Commission are exempt from sales and use tax. Taxable tangible
personal property purchased by the radio and television companies other than
towers, antennas and broadcasting equipment or parts and accessories thereto is
subject to the applicable statutory state and local sales or use tax.
(b) Sales to a cable service provider of broadcasting
equipment, parts, and accessories attached to the equipment are exempt from
sales and use tax. The term broadcasting equipment does not include cable.
Therefore, cable and other tangible personal property not considered
broadcasting equipment, parts, and accessories attached to the equipment are
subject to the applicable statutory state and local sales and use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105-164.13; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1991; December 1, 1984; March 1, 1984.
17 NCAC 07B .3103 RENTAL OF FILMS: RECORDINGS
Receipts derived from the lease or rental of motion picture
film or prerecorded videotape cassettes to theaters or similar businesses for
exhibition to the public and receipts derived from the lease or rental of such
film or prerecorded videotape cassettes to schools, churches, hospitals,
prisons and similar institutions and organizations for exhibition to students,
congregations, patients and inmates are exempt from sales or use tax. Receipts
derived from the lease or rental of motion picture film or prerecorded
videotape cassettes to businesses, individuals, organizations and other lessees
for any use other than for public exhibition are subject to the applicable
statutory state and local sales or use tax. Projection equipment, screens,
advertising matter and other tangible personal property which are leased,
rented or sold at retail for use in showing film, videotape cassettes, DVDs, or
any other prerecorded formats are subject to the applicable state and local
sales or use tax regardless of whether the film or videotape is privately or
publicly exhibited.
History Note: Authority G.S. 105-164.4; 105-164.13;
105-262; Article 39; Article 40; Article 42; Article 43; Article 44; Article
46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; April 1, 1997; October 1, 1993;
October 1, 1991; November 1, 1982;
January 1, 1982.
17 NCAC 07B .3104 BROADCASTING ACCESSORIES
Sales of slide or film projectors, screens, and photographic
supplies and equipment, including cameras, bulbs, film, blank videotape
cassettes, chemicals, paper, and other photographic developing equipment to television
companies operating under the regulation and supervision of the Federal
Communications Commission are subject to the one percent rate of tax with an
eighty dollar ($80.00) maximum tax per article when the items are used in
producing pictures and similar material used in the programming of the
television station. This Rule has no application to sales of the above items
to amateur photographers.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1998; June 1, 1992.
17 NCAC 07B .3105 SALES OF DEVELOPED FILM TO TELEVISION
STATIONS
The sale of developed film to commercial television stations
which operate under the regulation and supervision of the Federal
Communications Commission for use by them in broadcasting and telecasting
programs is exempt from sales and use tax.
History Note: Authority G.S. 105-164.13; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993.
17 NCAC 07B .3106 CABLE SERVICE PROVIDERS
(a) Sales of broadcasting equipment and parts and
accessories attached to the equipment to a cable service provider are exempt
from sales and use tax. Examples include towers and antenna. The term
"cable service provider," as used in this Rule, means a cable
television company that receives consideration from its subscribers and uses
broadcasting equipment and parts and accessories and a tower to receive and
prepare signals for transmission over their cable systems and also is regulated
and supervised by the Federal Communications Commission.
(b) The sale of developed movie film to cable service
providers which operate under the regulation and supervision of the Federal
Communications Commission for use by them in broadcasting and telecasting
programs is exempt from sales and use tax.
(c) Antenna cable, transmission cable, trunk, feeder and
drop cable, and tangible personal property purchased by cable service providers
other than towers, antennas and purchases of broadcasting equipment and parts
and accessories thereto are subject to the applicable statutory state and local
sales or use tax.
History Note: Authority G.S. 105-164.4; 105-164.6;
105-164.13;105-262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. March 1, 1984;
Amended Eff. August 1, 2009; April 1, 1997; October 1,
1993; October 1, 1991; August 1, 1986; December 1, 1984.
17 NCAC 07B .3107 MOTION PICTURE PRODUCTION FIRMS
(a) Sales to motion picture production firms of cameras,
film and props or building materials used in the construction of sets which are
used in the actual filming of movies for sale, lease or rental are exempt from
sales and use tax. The sale of chemicals and equipment used to develop and
edit film which is used to produce release prints is exempt from sales and use
tax.
(b) Sales of machinery and equipment and other property to
motion picture production firms for use in receiving tangible personal property
and other activities such as raw materials storage, finished goods storage,
distribution or administration is subject to the applicable statutory state and
local sales or use tax.
(c) The purchase of film by a movie production company
which becomes a component part of release prints that are actually produced and
sold, leased or rented to its customers are exempt from sales and use tax.
Also, chemicals which are used to develop release prints that are for sale,
lease or rental are exempt from tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; 105-164.13; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. June 1, 1992;
Amended Eff. October 1, 2009; October 1, 1993.
section .3200 - TELECOMMUNICATIONS AND TELEGRAPH COMPANIES
17 NCAC 07B .3201 TELECOMMUNICATIONS AND TELEGRAPH
COMPANIES
(a) Sales to telecommunications and telegraph companies
regularly engaged in providing telephone and telegraphic services to subscribers
on a commercial basis of central office equipment, switchboard and private
branch exchange equipment and prewritten computer programs used in providing
telecommunications service to subscribers are subject to the one percent sales
or use tax with a maximum tax of eighty dollars ($80.00) per article. For the
purpose of determining the items that may be properly included in the terms
central office equipment, switchboard equipment and private branch exchange
equipment, reference is made to Accounts 2124, 2211, 2212, 2215, 2220, 2231,
2232, 2311, and 2341 of Title 47‑‑Telecommunication Chapter 1, Part
32, Uniform System of Accounts For Telecommunications Companies, of the Federal
Communications Commission's rules and regulations as revised to January 1,
1988, which are hereby incorporated by reference. This Rule has no application
to future changes in the Federal Communications Commission's rules and
regulations until such changes are reviewed by the Secretary of Revenue to
determine the application of tax to the tangible personal property affected by
such changes. Copies of these Rules and Regulations may be obtained from the
Secretary's Office, Room 202, Federal Communications Commission, 1919 M Street,
N.W., Washington, D.C. 20554, at a fee of ten cents ($0.10) per page.
(b) Accounts 2211, 2212, 2215, 2220, 2231 and 2232; Central
Office Equipment. These accounts include switchboards and other equipment,
instruments and apparatus necessary to the functions of central offices. Sales
to and purchases by the above‑referred to telecommunications and
telegraph companies of the items included in Central Office Equipment Accounts,
are subject to the one percent sales or use tax with a maximum tax of eighty
dollars ($80.00) per article, irrespective of whether the items are classified
in the Uniform System of Accounts as capital expenditures or as maintenance
expense. Examples of items contained in Central Office Equipment Accounts
2211, 2212, 2215, 2220, 2231 and 2232 and taxable at the general State rate
plus any applicable local rate are:
(1) aisle‑lighting equipment attached to
buildings;
(2) building alterations when tangible personal
property not properly termed central office equipment is affixed or attached to
or in any manner becomes a part of a building or structure;
(3) cable, other than that connecting central
office units to each other or to distributing frames;
(4) covers for transmission power apparatus;
(5) desks and tables unless equipped with
central office equipment when purchased;
(6) foundations for engines and other equipment
when part of building;
(7) loading coils used outside central office,
loud speaker equipment, operators' chairs;
(8) platforms, rolling ladders, tarpaulins,
ticket holders, toll ticket carriers;
(9) water stills for battery service; and
(10) tools and portable testing equipment
regardless of where used.
(c) Account 2124 ‑ General Purpose Computers. This
account includes any computer system used to test, diagnose, maintain and
control more than one type of telecommunications plant in addition to computers
which are used to perform general administrative information processing
activities. Equipment used for the testing, diagnosis, maintenance, or control
of more than one type of central office equipment is taxable at the one percent
rate subject to the eighty dollar ($80.00) maximum tax per article, whether
classified under the Uniform System of Accounts as capital expenditures or as
maintenance expense; however, all other equipment in this account is subject to
tax at the general State rate plus any applicable local rate.
(d) Account 2311 - Station Apparatus. This account
includes private branch exchange equipment in addition to station apparatus.
Equipment which is properly included in the term private branch exchange
equipment is taxable at the one percent rate subject to the eighty dollar
($80.00) maximum tax per article, whether classified by the Uniform System of
Accounts as capital expenditures or as maintenance expense; however, all other
equipment in this account is subject to tax at the general state rate plus any
applicable local rate. Examples of items that are contained in Account 2311
and are taxable at the general State rate are desk sets, hand sets, wall sets,
mobile telephone equipment, backboards, battery boxes, booths, coil collectors,
station wiring, protectors, arresters, ground rods, clamps, wire and similar
associated equipment.
(e) Account 2341 - Large Private Branch Exchange. This
account contains equipment and apparatus necessary to the operation of the
above named exchanges. The equipment and apparatus contained in this account
which are properly included in the term private branch exchange equipment are
subject to the one percent sales or use tax with a maximum tax of eighty
dollars ($80.00) per article, whether classified under the Uniform System of
Accounts as capital expenditures or as maintenance expense, but does not
include any tangible personal property which is station apparatus. Examples of
items that are included in Account 2341 and are taxable at the general State
rate are operators' chairs and equipment.
(f) Telecommunications Services. - G.S. 105-164.4(a)(4c)
and G.S. 105-164.4C govern the taxation of telecommunications services.
(g) Property Sale or Lease. - A telecommunications company
that sells or leases equipment or other tangible personal property is liable
for collecting and remitting applicable State and local sales and use taxes on
the receipts from the sales or leases. Tax due on the sale or lease of
property by a telecommunications company is payable in the same manner as tax
due on the sale or lease of property by any other retailer; it is due monthly,
quarterly, or semimonthly in accordance with G.S. 105-164.16.
History Note: Authority G.S. 105‑164.4; 105-164.4A;
105‑164.6; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2002; April 1, 1999; October 1,
1993; October 1, 1991; October 1, 1990; July 1, 1989.
17 NCAC 07B .3202 TELEPHONE COMPANY PROPERTY SUBJECT TO
GENERAL RATE
All sales to telephone and telegraph companies of tangible
personal property not properly included in the terms central office equipment,
switchboard equipment, private branch exchange equipment or prewritten computer
programs used in providing telephone services to their subscribers, as
explained in 17 NCAC 07B .3201 are subject to the general State tax and any
applicable local sales or use tax. This includes all canned or prewritten computer
programs to be used for administrative purposes unless specifically exempt by
statute; all equipment, materials, supplies and apparatus to be used for
distribution purposes; all building materials, supplies, fixtures and equipment
of every kind and description annexed to or in any manner becoming a part of a
building or structure; apparatus or equipment chargeable to other accounts
pursuant to the instructions set out in the notes appearing under Accounts
2124, 2211, 2212, 2215, 2220, 2231, 2232, 2311 and 2341 in Part 32, Uniform
System of Accounts For Telecommunications Companies, of the Federal
Communications Commission's telecommunication rules and regulations which are
hereby incorporated by reference including subsequent amendments and revisions.
Copies of these Rules and Regulations may be obtained from the Secretary's
Office, Room 202, Federal Communications Commission, 1919 M Street, N.W.,
Washington, D.C. 20554, at a fee of ten cents ($0.10) per page.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2002; October 1, 1993; October 1,
1991; March 1, 1984; January 1, 1982.
17 NCAC 07B .3203 TOLL OR PRIVATE TELECOMMUNICATIONS
SERVICES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. July 1, 1989;
Amended Eff. October 1, 1991; October 1, 1990;
Repealed Eff. October 1, 1993.
17 NCAC 07B .3204 CELLULAR TELECOMMUNICATIONS COMPANIES
(a) One %, eighty dollars ($80.00) Maximum Rate on
Purchases -- The preferential one percent, maximum eighty dollars ($80.00) per
article rate in G.S. 105-164.4A(3) applies to cellular telephone companies.
Sales to these companies of the following items are subject to this
preferential rate:
(1) Antennas;
(2) Antenna cable used in transmitting the
radio signals from the microwave antenna to the microwave transmitter or
receiver;
(3) Central office telecommunications
equipment;
(4) Microwave transmitters and receivers;
(5) Prewritten computer programs used in
providing telecommunications services to subscribers;
(6) Radio channel units;
(7) Switchboard or private branch exchange
equipment; and
(8) Towers to support antennas used to transmit
and receive signals of microwave radios used in providing telephonic quality
communications. For the purpose of applying the maximum tax, a tower is
considered to be a single article only when the complete tower is sold by the
same vendor.
(b) Rates on Services and Sales -- Cellular services are
subject to tax under G.S. 105-164.4C as mobile telecommunications services.
Sales or leases of radio telephone equipment to subscribers are subject to the
general State tax and any applicable local sales or use taxes.
History Note: Authority G.S. 105-164.4; 105-164.4A; 105‑164.6;
105‑262; 105‑264;
Eff. June 1, 1992;
Amended Eff. August 1, 2002; July 1, 2000; October 1,
1993.
SECTION .3300 ‑ ORTHOPEDIC APPLIANCES
17 NCAC 07B .3301 EXEMPT PROSTHETIC DEVICES
(a) Exemption. G.S. 105-164.13(12) exempts from sales and
use tax prosthetic devices as defined in G.S. 105-164.3(30b). The exemption
includes orthodontic materials that are purchased by an orthodontist for
assembly into an appliance to be worn by a patient. Prosthetic devices are
exempt regardless of whether they are sold on prescription.
(b) Specific Items. -- The Sales and Use Tax Technical
Bulletins contain a list of exempt prosthetic devices and a list of orthodontic
materials that are considered to be exempt prosthetic devices when they are
purchased by an orthodontist for assembly into an appliance. An item that is
not included in these lists may also be exempt.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; April 1, 1999; August 1,
1998; October 1, 1993; October 1, 1991; July 1, 1989; February 1, 1986.
17 NCAC 07B .3302 EXEMPT DURABLE MEDICAL EQUIPMENT
(a) Devices. -- G.S. 105-164.13(12) exempts from sales and
use tax durable medical equipment as defined under G.S. 105-164.3(8b) when sold
on prescription. The Sales and Use Tax Technical Bulletins contain a list of
items that are exempt from tax as durable medical equipment when sold on
prescription. An item not included in the list in the Bulletins may also be
exempt from tax when sold on prescription.
(b) Records. - A vendor who sells durable medical equipment
pursuant to a written prescription must keep sales records that segregate these
sales. The vendor must keep the original prescription for inspection by the
Secretary of Revenue or an agent of the Secretary.
History Note: Authority G.S. 105‑164.4;
105-164.6; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; April 1, 1999; August 1,
1998; October 1, 1993; June 1, 1992; October 1, 1991; February 1, 1986.
17 NCAC 07B .3303 APPLIANCES IMPLANTED IN PATIENTS
17 NCAC 07B .3304 PROTECTIVE HELMETS FOR PATIENTS
17 NCAC 07B .3305 HEARING AIDS
17 NCAC 07B .3306 INVALID WALKERS: WALKING CANES
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Repealed Eff. August 1, 1998.
SECTION .3400 ‑ MEMORIAL STONE AND MONUMENT DEALERS AND
MONUMENT MANUFACTURERS
17 NCAC 07B .3401 MEMORIAL STONE SALES
Sales of memorial stones, monuments and bronze grave markers
to users or consumers are subject to the applicable statutory state and local
sales or use tax. Where the seller of a memorial stone, monument or bronze
grave marker agrees to install such property upon a foundation, a segregation
must be made of materials used and installation charges involved, on an invoice
given to the customer at the time of the sale. The seller may deduct the
installation labor costs or services from the gross proceeds of the sale only
when a segregation of the billing is made to the customer; otherwise, the total
charge is taxable.
History Note: Authority G.S. 105-164.3 105-164.4;
105-262; Article 39; Article 40; Article 42; Article 43; Article 44; Article
46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; December 1, 1994; October 1,
1993; June 1, 1992; October 1, 1991.
17 NCAC 07B .3402 MONUMENT MANUFACTURERS: TOOLS AND
SUPPLIES
Sales to monument manufacturers of stencils, abrasives and
cutting tools and equipment used by such manufacturers in the cutting, shaping,
and polishing process and the solvents used to remove the stencils from the
monuments are exempt from sales and use tax. Monument dealers who do not cut,
shape, polish and otherwise process monuments are not classified as
manufacturers and sales of stencils and other supplies to monument dealers for
use in lettering or polishing monuments which they sell are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105-164.4; 105-164.6;
105-164.13;105-262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3403 SUPPLIES TO INSTALL MEMORIAL
STONES/MONUMENTS/BRONZE GRAVE MARKERS
Purchases of sand, cement, lumber and other tangible
personal property by monument dealers for use in installing memorial stones,
monuments, or bronze grave markers are subject to the applicable statutory
state and local sales or use tax. Charges by dealers to their customers for
installation of such property are exempt from tax when such charges are
separately stated from the charge for the memorial stones, monuments or bronze
grave markers.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; December 1, 1994; October 1,
1993; October 1, 1991.
17 NCAC 07B .3404 BRONZE GRAVE MARKERS
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1976;
Repealed Eff. December 1, 1994.
SECTION .3500 ‑ MACHINISTS: FOUNDRYMEN: AND PATTERN
MAKERS
17 NCAC 07B .3501 MACHINISTS: FOUNDRYMEN: PATTERN
MAKERS
(a) Sales to users or consumers of dies, castings,
patterns, tools, machinery and any other tangible personal property made by machinists,
foundrymen or pattern makers, and parts and other tangible personal property
fabricated and sold for use or consumption on or with such items of tangible
personal property, are subject to the applicable statutory state and local
sales or use tax unless exempt from the tax under the provisions of Paragraph
(b) of this Rule.
(b) The following sales of any such property are exempt
from tax:
(1) For use or consumption by the holder of a
standard commercial fishing license issued under G.S. 113-168.2 for principal
use in commercial fishing operations; the holder of a shellfish license issued
under G.S. 113-169.2 for principal use in commercial shellfishing operations;
and the operator of a for-hire boat, as defined in G.S. 113-174, for principal
use in the commercial use of the boat.
(2) For use or consumption by or on ocean-going
vessels plying the high seas in interstate or foreign commerce in transporting
freight or passengers for hire exclusively.
(c) The tax due shall be computed at the applicable rate on
the full selling price of such property, including charges for any services
that go into the fabrication, manufacture or delivery thereof.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-164.13;
105-262; 105-264; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; June 1,
1992; October 1, 1991; January 1, 1982.
17 NCAC 07B .3502 MOLDS: DIES: MILL MACHINERY
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991; October 1, 1988;
Repealed Eff. October 1, 1993.
17 NCAC 07B .3503 MOLDS: DIES: FOR RESALE
Sales of molds, patterns or dies to manufacturers for resale
to their customers are exempt from tax and classified as wholesale sales when
such sales are supported by completed Streamlined Sales and Use Tax Agreement
Certificates of Exemption, Form E-595E. Manufacturers are considered to be
purchasing such items for resale only when title thereto and the right of
possession thereof will pass to their customers and the manufacturer‑vendors'
books, records and invoices show that such items are actually sold to their
customers.
History Note: Authority G.S. 105‑164.5; 105‑262;
Eff. February 1, 1976;
Amended Eff. May 1, 2009.
17 NCAC 07B .3504 MOLDS: DIES: RETAINED BY SELLER
Manufacturers making sales of molds, patterns or dies to
users or consumers in this state shall register with the Department of Revenue
for the purpose of collecting and remitting the tax due on such sales. If
manufacturers make retail sales of molds, patterns or dies to manufacturer-customers
within and without this state, with the right of possession and title thereto
passing to such customers, the manufacturer-customers are exempt from sales and
use tax when the manufacturers selling the molds, patterns or dies retain them
in their possession within this state for use in manufacturing tangible
personal property for sale to such customers. Out-of-state manufacturers
making retail sales of molds, patterns or dies to customers within this state
are not required to collect and remit North Carolina sales or use taxes on such
sales when the out-of-state manufacturers retain the molds, patterns or dies in
their possession for their use outside this state in manufacturing tangible
personal property for sale to such customers.
History Note: Authority G.S. 105-164.4; 105-164.6;
105-164.13; 105-262; Article 39; Article 40; Article 42; Article 43; Article
44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993.
17 NCAC 07B .3505 MOLDS: DIES: NONMANUFACTURERS' USE
Manufacturers making retail sales of molds, patterns or dies
to nonmanufacturing users or consumers within and without this state, with
right of possession and title thereto passing to such customers, are liable for
collecting and remitting the applicable statutory state and local sales or use
tax on such sales, when the manufacturers selling the molds, patterns or dies
retain them in their possession within this state for use in manufacturing
tangible personal property for sale to such customers.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1, 1991;
October 1, 1988.
17 NCAC 07B .3506 MOLDS: DIES: RECORD KEEPING
Manufacturers making retail sales of molds, patterns or
dies, with the right of possession and title thereto passing to their
customers, must separately state the charges therefor from any charges for
other tangible personal property sold to such customers in their books and
records and on the sales invoices given to the customers at the time of the
sale.
History Note: Authority G.S. 105-164.22; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009.
SECTION .3600 ‑ FUNERAL EXPENSES
17 NCAC 07B .3601 FUNERAL EXPENSES
(a) The gross receipts from services rendered by funeral
directors, morticians, or undertakers are not subject to sales and use tax.
Other charges for services rendered in connection with funerals that are not
subject to sales and use tax include charges for burial permit fees, stone
deposits to guarantee the erection of a stone, ambulance service, cemetery
lots, grave opening fees, death certificates, and those services performed by beauticians
and barbers. Sales of taxable tangible personal property are subject to the
applicable statutory state and local sales and use tax. Examples of taxable
tangible personal property are coffins, caskets, vaults, memorial stones,
monuments, grave markers, and similar property. The charge for installation of
taxable tangible personal property, such as the installation of a memorial
stone or monument, is exempt from sales and use tax if the charge is separately
stated on the purchaser's invoice and in the seller's records. The charges for
taxable tangible personal property must be separately stated from the charges
for services rendered in order for the service to be exempt.
(b) Sales to funeral directors, morticians and undertakers
of graveside equipment, embalming fluid, cosmetics, disinfectants, chairs,
flower racks, casket trucks and other supplies or equipment for use in
conducting their businesses are subject to the applicable statutory state and
local sales or use tax.
(c) Charges for cremation are not subject to sales and use
tax. Sales of urns and similar tangible personal property are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-164.13;
105-262; Article 39; Article 40; Article 42; Article 43; Article 44; Article
46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; June 1,
1992; October 1, 1991; February 1, 1987.
17 NCAC 07B .3602 CREMATION CHARGES
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. February 1, 1986;
Repealed Eff. October 1, 1993.
17 NCAC 07B .3603 DEATH BENEFIT PAYMENTS
History Note: Authority G.S. 105-164.13; 105-262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980;
Repealed Eff. August 1, 2009.
SECTION .3700 ‑ LUBRICANTS: OILS AND GREASES
17 NCAC 07B .3701 LUBRICATING SERVICE
Chassis lubricants or greases, equipment and other tangible
personal property used in lubricating motor vehicles are subject to the
applicable statutory state and local sales or use tax when sold to service
stations, garage operators and other persons engaged in the business of
lubricating motor vehicles. Charges by the above businesses for services
rendered in lubricating motor vehicles are not subject to tax provided such
businesses maintain records which separately reflect the charges for
lubricating motor vehicles and the charges for any sales of tangible personal
property.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3702 SALES OF LUBRICANTS
Sales of motor oils, transmission or differential oils or
greases, or other similar oils and greases by lubricating stations, service
stations, garage operators, and similar businesses to users or consumers are subject
to the applicable statutory state and local sales or use tax, unless an
exemption applies. The sale of a lubricant to a manufacturer for use in
lubricating production machinery is exempt from sales and use tax. A business
that sells taxable oil or grease must collect and remit the applicable tax to
the Department.
History Note: Authority G.S. 105-164.4; 105-164.13; 105-262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; April 1, 1999; October 1,
1993; October 1, 1991.
17 NCAC 07B .3703 CAR WASH BUSINESSES
The gross receipts from washing cars by persons operating a
car wash business are exempt from tax. Such persons are liable for payment of
the applicable statutory state and local sales or use tax on tangible personal
property which they purchase for use in the operation of such businesses. If
car wash operators make sales of tangible personal property through vending
machines or otherwise, they are liable for collecting and remitting tax
thereon.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
SECTION .3800 ‑ PREMIUMS: GIFTS AND TRADING STAMPS
17 NCAC 07B .3801 PREMIUMS AND GIFTS
Sales to a retailer of tangible personal property for use by
the retailer as premiums or gifts are subject to the applicable statutory state
and local sales or use tax and the purchaser shall remit the tax on the
purchases to his suppliers. If the suppliers are located outside this state
and do not collect the North Carolina sales or use tax on the purchases, the
purchaser shall remit such tax directly to the Department. If the property
purchased is of the character customarily sold by the retailer, he may purchase
the same without payment of the tax if he furnishes his supplier with a
Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form E-595E.
In this case, the retailer must remit to the Department the tax on all taxable
articles withdrawn from stock and used as premiums or gifts. The provisions of
this Rule do not apply to any purchases of property to be used in redeeming
trading stamps or other media.
History Note: Authority G.S. 105-164.4; 105-164.6;
105-262; Article 39; Article 40; Article 42; Article 43; Article 44; Article
46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3802 SALES OF TRADING STAMPS
Sales of trading stamps to a registered merchant, whether a
trading stamp company or other retailer, are deemed to be sales for the purpose
of resale and such sales are not subject to the tax. When the retailer distributes
the stamps to his customers in connection with retail sales of other property,
the stamps are considered to be included in the price of the items purchased by
such customers. Sales to a trading stamp company of catalogues, stamp books,
advertising matter or other tangible personal property furnished free to retail
merchants or used by the trading stamp company to promote its stamp program are
subject to the applicable statutory state and local sales or use tax. Sales of
such items to other retail merchants are also subject to said tax.
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1, 1991.
17 NCAC 07B .3803 REDEMPTION OF TRADING STAMPS
(a) Trading stamp companies which redeem trading stamps are
deemed to be engaged in the business of selling tangible personal property at
retail for a consideration. The companies must register with the Department
and collect and remit the applicable statutory state and local sales or use tax
due on all the sales. The tax shall be computed on the redemption value of the
stamps, stamp book, or other media which the trading stamp company accepts for
the premium.
(b) A trading stamp company or other vendor which sells
goods and trading stamps to a retailer who will himself redeem the stamps shall
secure a Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form
E-595E, from the retailer since, in such instances, the trading stamp company
or other vendor is deemed to be selling tangible personal property for the
purpose of resale. The retailer is liable for the applicable statutory state
and local sales tax on the redemption value of the stamps, stamp book or other
media which he accepts for any premium.
(c) If a trading stamp company or other merchant has
questions relative to any transaction or operation involving the use of trading
stamps, premiums or gifts, the trading stamp company or other merchant may
submit all pertinent facts relating thereto to the Department for a ruling as
to its tax status.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .3804 GIFT CERTIFICATES
Charges by vendors for gift certificates which can be
exchanged for merchandise are not subject to sales tax. When the holder of
such gift certificates exchanges the certificate for merchandise, the
transaction is subject to the applicable statutory state and local sales or use
tax. The basis for the tax is the sales price of the property.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
SECTION .3900 ‑ CONTAINERS: WRAPPING: PACKING AND
SHIPPING MATERIALS
17 NCAC 07B .3901 CONTAINERS: WRAPPING: PACKING AND
SHIPPING MATERIALS
(a) Sales to manufacturers, producers, wholesalers, and
retailers of wrapping paper, labels, bags, cartons, and the other items
specified in G.S. 105‑164.13(23)a. are not subject to tax if they are
used for packaging, shipping, or delivering tangible personal property sold at
wholesale or retail and they constitute a part of the sale of the property and
are delivered with the property to the customer. Except for the items
described in Paragraph (b) of this Rule, this exemption does not apply to items
that are used solely for delivery purposes and do not become a part of the sale
of tangible personal property.
(b) Sales of containers, such as barrels and drums, that
are used to package tangible personal property for delivery to the customer and
are returned to the owner for reuse are not subject to tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1998; October 1, 1993; October 1,
1991; April 1, 1986; May 11, 1979.
17 NCAC 07B .3902 HOGSHEADS: CARDBOARD CONTAINERS: ETC.
Sales of wooden hogsheads, cardboard containers and
strapping to operators of prizeries for use in moving tobacco from the prizery
to the redrying plant are subject to the applicable statutory state and local
sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .3903 PACKAGING MATERIALS: WAREHOUSEMEN AND
MOVERS
Sales of packaging and packing materials to warehousemen and
movers for use in the performance of storage and moving services are subject to
the applicable statutory state and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .3904 MARKING MACHINES
Sales of marking machines to retailers and wholesalers for
use in imprinting price, size, or other information on tickets, tags, etc., are
subject to the applicable statutory state and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .3905 ICE HANDLING SUPPLIES
Sales of ice picks, ice tongs, tarpaulins and reusable
canvas bags to merchants for use in the delivery of ice to customers, but which
do not become a part of the sale, are subject to the applicable statutory state
and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .3906 EGG CARTONS
Sales of egg
cartons to persons engaged in the business of selling eggs are exempt from tax
when such cartons become a part of the sale of the eggs to the customer.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .3907 REUSABLE CONTAINERS
(a) Deposits charged by vendors for reusable containers,
other than those described in G.S. 105-164.13(47) and (48) are subject to sales
or use tax when the purchasers of the property contained therein can, during the
period the containers are in their possession, exercise such control over the
containers as is ordinarily associated with ownership. Such amounts are a part
of the sales price even though designated as a deposit for the containers.
(b) When the vendors retain title to such containers and
the vendors retain the right to control the use which vendee makes of the
containers, the containers are not considered to be a part of the sale of the
property. In such cases, amounts charged to the customers as security for the
return of the containers are not subject to sales or use tax if such charges
are shown separately from the sales price of the property on the customers'
invoices. If such amounts are not separately stated, the total charge is
subject to the tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105-164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2002; January 1, 1982; July 5,
1980.
17 NCAC 07B .3908 FOOD STORAGE SUPPLIES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. July 5, 1980.
17 NCAC 07B .3909 DRUMS FOR PACKAGING PRODUCTS
Sales of drums
to manufacturers, producers, wholesalers, and retailers are exempt from tax
under G.S. 105‑164.13(23) when such drums are used for packaging,
shipment, or delivery of tangible personal property which is sold at wholesale
or retail and when such drums constitute a part of the sale of such tangible
personal property and are delivered with it to the customer. Sales of paint to
manufacturers, producers, wholesalers, and retailers for use in painting such
drums are also exempt from tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .3910 RETURNABLE CONTAINERS
When a vendor sells tangible personal property in returnable
containers without a charge being made for the use of the containers for a
specified time but, at the expiration of the specified time, the containers enter
a demurrage period and a penalty charge is made as an inducement for the return
of the containers, the charges are incidental to the sale of the property and
are not subject to the tax. If a container is used by the owner of the
container or another person to enclose tangible personal property for delivery
to a purchaser of the property and is required to be returned to its owner for
reuse, it is exempt from tax in accordance with G.S. 105-164.13(23)b.
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1998.
17 NCAC 07B .3911 GIFT WRAPPING
(a) When a
vendor gift wraps an item which he sells, the paper, ribbon, and bow become a
part of the sale of the item notwithstanding that the wrapping of the item may
take place at the point of delivery thereof to the vendee or at one of the
vendor's wrapping stations or that the vendor may make a charge for gift
wrapping the item. If a separate charge is made for wrapping, it is deemed to
be for services performed in wrapping the item rather than a separate sale of wrapping
material, and no sales or use tax will be due on the wrapping charge.
(b) In a case
where an organization, as a means of raising funds, offers to wrap gift items
which were purchased from others, the organization is considered to be
performing a wrapping service; and its purchases of paper, ribbon, and bows for
use in the performance of the service are taxable. Under these circumstances,
no tax is due on the service charges.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; 105‑264;
Eff. January 3, 1984;
Amended Eff. November 1, 1994; October 1, 1993.
SECTION .4000 ‑ FERTILIZER: SEEDS: FEED AND INSECTICIDES
17 NCAC 07B .4001 FERTILIZER: LIME AND LAND PLASTER
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .4002 FERTILIZER AND SEEDS
(a) Sales of seeds to farmers for agricultural purposes are
exempt from sales and use tax. The term "seeds" means seeds in their
generally accepted sense and includes flower seed, sets, tubers, roots, tobacco
plants, tomato plants, pepper plants, eggplants, potato plants, and other small
plants that are raised in beds or hothouses for transplanting. The term
"seeds" does not include potted plants, trees, shrubs, cut flowers,
and other larger plants.
(b) Sales of the following to farmers are exempt from sales
and use tax:
(1) Commercial fertilizer;
(2) Lime;
(3) Land plaster;
(4) Plastic mulch;
(5) Plant bed covers;
(6) Potting soil; and
(7) Baler twine.
(c) The term "agricultural," as used in this
Rule, means cultivating the soil for the production of crops for sale in the
regular course of business; the production of animals for sale in the regular
course of business; or the holding and management of animals for the production
of animal products for sale in the regular course of business. It includes
beekeepers, dairy operators, poultry farmers, egg producers, livestock farmers,
nurserymen, greenhouse operators, orchardmen and other persons engaged in the
commercial production of plants and animals as described in this Rule for sale
in the regular course of business. It does not include someone who merely
cultivates the soil for the ornamental effects nor does it include home
gardening or commercial activities other than the types described in this Rule.
History Note: Authority G.S. 105-164.13; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; June 1, 2006; August 1,
2003; August 1, 1996; April 1, 1986; February 1, 1986.
17 NCAC 07B .4003 FEED, REMEDIES, VACCINES, MEDICATIONS,
AND LITTER MATERIAL FOR ANIMALS
Sales of remedies, vaccines, medications, litter materials,
and feed for animals, including cattle, horses, mules, sheep, chickens,
turkeys, bees, and fish, held or produced for commercial purposes are exempt
from sales or use tax. The terms "remedies" and
"medications" mean all medicines in the generally accepted sense of
the term and also include tonics for internal use, vitamins, ointments, liniments,
antiseptics, anesthetics, and other medicinal substances having preventive and
curative properties in the prevention, treatment, or cure of disease in
animals. The term "feed" includes dietary supplements, such as
minerals, oyster shells, salt, bone meal, and other similar preparations or
compounds, to be fed directly or to be mixed with feed for animals for normal
growth, maintenance, lactation, or reproduction, but does not include sand or
grit. The exemption does not include equipment or devices used to administer,
release, or otherwise dispense remedies, vaccines, medications, litter
material, or feed. Retail sales of sand or grit for use in the production of
animals are subject to the general rate of state tax and any applicable local
sales or use tax. Retail sales of remedies, vaccines, medications, litter
materials, and feed for pets, such as birds, cats, and dogs, are subject to the
general rate of state tax and any applicable local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2003; August 1, 1998; October 1,
1993; October 1, 1991; May 1, 1990; May 11, 1979.
17 NCAC 07B .4004 INSECTICIDES AND SIMILAR PRODUCTS
(a) Sales of rodenticides, insecticides, herbicides,
fungicides and pesticides, as herein defined, for use in the commercial
production of animals or plants are not subject to the sales or use tax. The
exemption for these items does not include equipment or devices used to
administer or otherwise dispense the items. For the purpose of this the
following definitions apply:
(1) Insecticide means any substance or mixture
of substances intended for preventing, destroying, repelling, or mitigating any
insects.
(2) Fungicide means any substance or mixture of
substances intended for preventing, destroying, repelling, or mitigating any
fungi or plant disease.
(3) Herbicide means any substance or mixture of
substances intended for preventing, destroying, repelling, or mitigating any
weed.
(4) Rodenticide means any substance or mixture
of substances intended for preventing, destroying, repelling, or mitigating
rodents.
(5) Pesticide means any substance used to kill
rats, mites, insects, fungi and bacteria.
(b) Herbicides are exempt only when used as weed killers
for the commercial production of plants. The other items herein defined are
exempt only when purchased for the commercial production of plants or to spray,
dust, dip, fumigate or otherwise protect animals held or produced for
commercial purposes or their quarters against insects, diseases or rodents.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2003; August 1, 1996.
17 NCAC 07B .4005 DEFOLIANTS: INHIBITORS: ETC.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Repealed Eff. October 1, 1993.
17 NCAC 07B .4006 HOUSEHOLD INSECTICIDES: ETC.
Sales of rodenticides, insecticides, herbicides, fungicides
and pesticides for household purposes are subject to the applicable statutory
state and local sales or use tax. Sales of insecticides for use on lawns and
golf courses are subject to the applicable statutory state and local sales or
use tax. Sales of insecticides and herbicides to contractors for use in
performing contracts to clear highway rights‑of‑way are subject to
the applicable statutory state and local sales or use tax.
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. June 1, 2006; October 1, 1993; October 1,
1991; December 1, 1982.
17 NCAC 07B .4007 PROCESSED MANURE
Sales of processed poultry manure, cow manure, and other
manure to farmers for agricultural use as a fertilizer are not subject to tax.
Occasional or isolated sales by farmers of manure generated in their farming operations
are exempt from tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2003; January 1, 1982.
17 NCAC 07B .4008 BREAD USED FOR FEED
Bulk sales of bread for use as feed for animals held or
produced for commercial purposes are exempt from tax. Bakeries or stores
making such sales shall show on the sales invoices that the bread is being sold
as feed and shall reflect the name and address of the purchaser. If records
are not kept supporting sales of this type, such sales will be considered
taxable.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996.
17 NCAC 07B .4009 RIDING STABLES
A riding stable is considered a commercial enterprise. Feed
for horses owned by or boarded at a riding stable is therefore exempt from
sales and use tax. Charges by riding stables for riding privileges are also
exempt from the tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1998.
17 NCAC 07B .4010 INSECTICIDES FOR LAWNS
17 NCAC 07B .4011 INSECTICIDES SOLD TO CONTRACTORS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980;
Repealed Eff. December 1, 1982.
SECTION .4100 ‑ ARTISTS: ART DEALERS: PHOTOGRAPHERS:
ETC.
17 NCAC 07B .4101 OBJECTS OF ART
Retail sales of objects of art and art supplies are subject
to the applicable statutory state and local sales or use tax except those sales
that are exempt under G.S. 105-164.13.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article
43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4102 SALES OF PHOTOGRAPHS
The sale of photographs, including all charges for
developing or printing, is subject to the applicable statutory state and local
sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4103 PHOTO TINTING
The tinting or coloring of photographs delivered to a
photographer or photo finisher by a customer constitutes a service and the
receipts therefrom are not taxable. Sales to photographers and photo finishers
of materials to be used by them in performing such services are subject to the applicable
statutory state and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4104 BLUEPRINTS
Sales of photostatic copies or blueprints by a photostat or
blueprint producer or others to consumers or users are subject to the applicable
statutory state and local sales or use tax to be computed on the gross
receipts.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4105 PHOTO SUPPLIES AND MATERIALS
Sales of frames, films and other articles by photographers,
photo finishers or others to users or consumers are subject to the applicable
statutory state and local sales or use tax. Gross receipts from sales of
photographs by commercial or portrait photographers or others are subject to
the applicable statutory state and local sales or use tax; however, sales to
commercial or portrait photographers of materials which become an ingredient or
component part of the finished picture are not subject to the tax. Mounts,
frames, and paper become an ingredient or component part of the finished
picture and the sales of such materials to commercial or portrait photographers
are not subject to the tax. Materials such as films, chemicals, proof paper,
cameras, trays, and similar items that are used in the manufacture or
fabrication of such pictures are exempt from the sales and use tax and subject
to the privilege tax under the provisions of G.S. 105-187.51 when such
materials are purchased by commercial or portrait photographers.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-187.50;
105-187.51; 105-187.52; 105-262; Article 39; Article 40; Article 42; Article
43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4106 PHOTOENGRAVINGS: ELECTROTYPES: ETC.
Purchases by commercial printers of photoengravings,
electrotypes and lithographs, when the same are not for resale, but which the
purchaser uses in printing tangible personal property for sale are exempt from
the sales and use tax and subject to the privilege tax under the provisions of
G.S. 105-187.51. Sales of photoengravings, electrotypes and lithographs and
all other printing equipment and supplies, including paper and ink, to consumer
or captive printers are subject to the applicable statutory state and local
sales or use tax.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-187.50;
105-187.51; 105-187.52; 105-262; Article 39; Article 40; Article 42; Article
43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4107 SALES OF MOVIE FILM
The sale of developed movie film to users or consumers is
subject to the applicable statutory state and local sales or use tax unless exempt
by Statute.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-164.13(5e);
105-262; Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; October 1, 1993; October
1, 1991; July 5, 1980.
17 NCAC 07B .4108 NEGATIVE DEVELOPING
Charges by photo finishers for developing customers' film
into negatives which are returned to such customers only on the exposed film
furnished by the customer to the photo finisher are not subject to sales or use
tax.
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976;
Amended Eff. January 1, 1982; July 5, 1980.
17 NCAC 07B .4109 BLUEPRINTS SOLD TO ARCHITECTS
Sales of blueprints, photographs and other tangible personal
property to an architectural or engineering firm for use or consumption and not
for resale are subject to the applicable statutory state and local sales or use
tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4110 BLUEPRINTS SOLD BY ARCHITECTS
Architects are liable for sales tax on blueprints or plans
when they reproduce plans or drawings and sell them. No tax is due when plans
and specifications are instruments of service and title thereto remains with
the architects.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
SECTION .4200 ‑ SALES TO THE UNITED STATES GOVERNMENT OR
AGENCIES THEREOF
17 NCAC 07B .4201 IN GENERAL
(a) Sales made directly to the United States
Government, or any agency thereof, are not subject to the sales or use tax. In
order to be a sale to the United States Government, the government or agency
involved must make the purchase of the property, obtain title to the property
before or at the time it is delivered, and pay directly to the vendor the
purchase price of such property or use a government bankcard to pay the vendor
the purchase price of such property.
(b) Nontaxable federal agencies include the
United States Postal Service, Departments of Defense, Army, Navy and Air Force,
United States hospitals, federal reserve banks, federal land banks, federal
housing projects, federal housing authorities, or any other department or
departments of the federal government whose activities are directly under
federal control and whose purchases are paid for from the federal treasury.
(c) Sales made to Army, Navy and Air Force
Activities Funds, post exchanges, officers' mess funds, noncommissioned
officers funds and other voluntary unincorporated organizations of Army, Navy,
Marine Corps, Air Force, or Coast Guard personnel authorized by regulations issued
by the Departments of Defense, Army, Navy or Air Force are likewise exempt from
sales and use tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1988.
17 NCAC 07B .4202 EXEMPT SALES TO THE UNITED STATES
GOVERNMENT
(a) Purchase Requisitions: A vendor making sales directly
to the United States Government, or any agency or instrumentality thereof, that
issues purchase requisitions or affidavits must obtain and keep copies of such
purchase requisitions or affidavits signed by the purchasing officer stating
that such sales are being made directly to the United States Government or an
agency or instrumentality thereof. Copies of such purchase requisitions or
affidavits must be retained by the vendor in his files for three years
following the date of sale and must be available for inspection by the
Secretary of Revenue or her agents upon request.
(b) United States Government Credit Card Program – GSA Smartpay:
Card designs may be viewed on the following Internet website:
http://www.gsa-smartpay.org/gsa-howidentify.html.
(1) Fleet Cards: All Federal Government fleet
cards are centrally billed. This means that all charges are billed directly to
and paid directly by the Federal Government and are exempt from the general
rate of State tax and any applicable local sales and use tax.
(2) Purchase Cards: All Federal Government
purchase cards are centrally billed. This means that all charges are billed directly
to and paid directly by the Federal Government and are exempt from the general
rate of State tax and any applicable local sales and use tax.
(3) Travel Cards: Federal Government travel
cards may be centrally billed or individually billed. Individually billed
charges are billed to and paid by the Federal employee who is then reimbursed
by the Federal Government. These charges are subject to the general rate of
State tax and any applicable local sales and use tax. Centrally billed charges
are billed directly to and paid directly by the Federal Government and are
exempt from to the general rate of State tax and any applicable local sales and
use tax.
(4) Integrated Cards: Federal Government
integrated cards include fleet, travel, purchase transactions or any
combination thereof and offer the Federal Government a single card for all of
its purchases. This card is in use only at the Department of the Interior.
All fleet and purchase type transactions on an integrated card are centrally
billed, and travel type transactions may be centrally billed or individually
billed. Centrally billed charges are billed directly to and paid directly by
the Federal Government and are exempt from the general rate of State tax and
any applicable local sales and use tax. Individually billed charges are billed
to and paid by the Federal employee and then reimbursed by the Federal
Government. These charges are subject to the general rate of State tax and any
applicable local sales and use tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; April 1, 1997; January 1,
1995; October 1, 1993; October 1, 1991; August 1, 1988.
17 NCAC 07B .4203 CONTRACTORS FOR THE FEDERAL GOVERNMENT
Sales of tangible personal property to contractors for use
in performing contracts with the United States Government or its agencies and
instrumentalities are subject to the applicable statutory state and local sales
or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4204 GOVERNMENT AGRICULTURAL OFFICES
County agricultural stabilization and
conservation offices are agencies or instrumentalities of the federal
government and are exempt from payment of sales and use taxes on their
purchases of tangible personal property for use in carrying on their work.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4205 FEDERAL CREDIT UNIONS AND THE FARM
CREDIT SYSTEM
(a) Federal Credit Unions: Sales of tangible personal
property to federal credit unions organized under the Federal Credit Union Act,
12 U.S.C. §§ 1751 et seq., are exempt from North Carolina sales and use tax. See
12 U.S.C. § 1768.
(b) The Farm Credit System: The Farm Credit System, 12
U.S.C §§ 2001 et seq., includes the Farm Credit Banks, the Federal land bank
associations, the production credit associations, the banks for cooperatives,
and such other institutions as may be made part of the System, all of which are
chartered by and subject to the regulation of the Farm Credit Administration.
(1) Sales of tangible personal property to Farm
Credit Banks and Federal land banks are exempt from North Carolina sales and
use tax. See 12 U.S.C. §§ 2023 and 2098.
(2) Sales of tangible personal property to
production credit associations and banks for cooperatives for use or
consumption are subject to the applicable statutory state and local sales or
use tax. See 12 U.S.C. §§ 2077 and 2134.
History Note: Authority G.S. 105‑164.13; 105-262;
105‑264; Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; November 1, 1995; January
1, 1995; January 3, 1984.
17 NCAC 07B .4206 FED SAVINGS/LOAN ASSOC, NATL BANKS/ST
BANKS/ST CHARTERED CREDIT UNIONS
(a) Sales of tangible personal property to federal savings
and loan associations and national banks for use or consumption are subject to
the applicable statutory state and local sales or use tax. See 12 U.S.C. §
1464(h) and 548.
(b) Sales of tangible personal property to state banks and
state chartered credit unions for use or consumption are subject to the
applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-262; 105‑264; Article 39; Article 40; Article 42; Article 43; Article
44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; January 1, 1995; October
1, 1993; October 1, 1991.
17 NCAC 07B .4207 RESERVE OFFICERS' UNIFORMS
Sales of uniforms, other than sales directly to the United
States Government, for use in reserve officers training programs are subject to
the applicable statutory state and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991.
17 NCAC 07B .4208 POSTAL EMPLOYEES' ASSOCIATIONS
A post office employees' association is not
construed to be an instrumentality of the United States and sales by such
organizations are subject to tax. Neither the situs of the sale nor the status
of the vendor would make them exempt from the North Carolina sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980.
17 NCAC 07B .4209 BUSINESSES IN FEDERAL AREAS
The fact that a business is located in a
federal area does not in itself exempt said business from collecting and
remitting sales tax. Title 4 of the U.S. Code, Section 105, provides that a
state which levies sales taxes shall have full jurisdiction and the power to
levy and collect sales taxes in any federal area within such state to the same
extent and with the same effect as though such area was not a federal area with
certain exemptions provided in Title 4, U.S. Code, Section 107, for sales by
the United States Government or its instrumentalities.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4210 CHEROKEE INDIAN RESERVATION
Sales of tangible personal property by
merchants on the Cherokee Indian Reservation are exempt from sales and use
taxes when such merchants are authorized to do business on the Reservation and
are paying the tribal gross receipts levy to the Tribal Council. The above
exemption from the tax is applicable to all sales by merchants on the
Reservation without regard to the status of the purchaser.
Sales of tangible personal property by in‑state
vendors or out‑of‑state vendors to the Eastern Band of Cherokee
Indians or to individual Indians of the band are exempt from sales and use
taxes when delivery of the property occurs on the Reservation. Sales of
tangible personal property by in‑state or out‑of‑state
vendors to the Eastern Band of Cherokee Indians, to individual Indians of the
band, to contractors or anyone else representing Indians are subject to sales
or use taxes when delivery thereof occurs outside the Reservation even though
such property may be incorporated into improvements on the Reservation.
Contractors are users or consumers of all
tangible personal property which they purchase within or without this State for
use in the performance of contracts. Contractors are liable for remitting the
applicable sales or use tax on all tangible personal property purchased within
or without this State when delivery occurs off the Reservation even though the
contractors may use it or incorporate it in improvements on the Reservation.
Property purchased by and delivered to a contractor on a Reservation to be
incorporated in an improvement to real property is not subject to sales or use
tax. Property purchased by and delivered to contractors on a reservation for
use in performing a contract (but where the property is not incorporated in an
improvement) is subject to sales or use tax unless sold by merchants on the
Cherokee Indian Reservation who are authorized to do business there and who pay
the tribal levy on the transaction which property is, therefore, exempt under
G.S. 105‑164.13(25).
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. January 1, 1982.
section .4300 – refunds to interstate carriers
17 NCAC 07B .4301 REFUNDS TO INTERSTATE CARRIERS
(a) Scope -- This Rule explains the sales and use tax
refund allowed to interstate carriers under G.S. 105-164.14(a) The refund
authorized by that statute does not apply to taxes listed in 17 NCAC 07B
.1602(d).
(b) Eligible Items – Sales and use taxes paid on railway
cars and locomotives are eligible for refund. In addition, the following items
are considered to be fuel, a lubricant, a repair part, or an accessory.
Therefore, sales and use taxes paid on purchases of the following items are
eligible for refund under G.S. 105-164.14(a):
(1) antennas;
(2) antifreeze;
(3) bedding for motor vehicle sleeping
compartments;
(4) charts for tachographs;
(5) decals for motor vehicles;
(6) emergency flares and reflectors;
(7) fire extinguishers;
(8) freon or nitrogen used in refrigerating and
cooling motor vehicles;
(9) furniture pads;
(10) lifeboats and oxygen masks;
(11) load jacks and chains;
(12) mobile CB radios;
(13) motor vehicle seat cushions;
(14) paints for decals;
(15) polyethylene liners (used to waterproof
trailers);
(16) pouches for registration cards and permits;
(17) radios;
(18) ramp equipment (aircraft steps used to
embark or disembark aircraft);
(19) ropes and chains to tie down cargo (adapted
for use on motor vehicles; otherwise not allowed);
(20) signs (metal signs attached to trucks);
(21) tarpaulins;
(22) tire chains;
(23) tire and tubes;
(24) welding rods for repair of motor vehicles;
(25) windshield solvents; or
(26) zipped covers for grills.
(c) Items not Eligible -- The following items are not
considered to be fuel, a lubricant, a repair part, or an accessory. Therefore,
sales and use taxes paid on purchases of the following items are not eligible
for refund under G.S. 105-164.14(a):
(1) drivers' gloves;
(2) drivers' uniforms;
(3) food trays (airplanes);
(4) fork lift tires and parts;
(5) gauges for testing equipment;
(6) hand trucks;
(7) license and inspection fees;
(8) pallets;
(9) pillows (airplanes);
(10) repair labor;
(11) road service charges;
(12) security seals;
(13) sixty percent on recapped tires where forty
percent of the combined price is taxed (17 NCAC 07B .1901);
(14) tire volume discounts;
(15) tools, shop supplies;
(16) trip logs; or
(17) wax and washing supplies.
(d) Other Items -- The lists in this Rule do not include
every item that is or is not subject to refund. Upon request, the Sales and Use
Tax Division shall determine if an item not included in either list is subject
to refund.
(e) Amount of Refund -- G.S. 105-164.14(a) sets out the
formula for computing the amount of a refund. Under the formula, an interstate
carrier receives a refund for a percentage of the tax paid on eligible items.
History Note: Authority G.S. 105‑164.14; 105‑262;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; July 1, 2000; August 1,
1998; August 1, 1996; October 1, 1993; July 1, 1990; February 1, 1987; March 1,
1984.
17 NCAC 07B .4302 REFUNDS TO RAILROAD COMPANIES
The repair of cars of a foreign line operated by an
applicant shall be included in total purchases by the applicant for refund
regardless of the fact that the operating company may bill the owner for
repairs performed on such cars. Repairs to the applicant's cars operating on
foreign lines shall be excluded since such cars are not being operated by the
applicant for refund, regardless of the fact that the foreign company may bill
the applicant for repair parts used to maintain the applicant's cars when in
operation over foreign lines. Because there is no record kept of the miles
that the applicant's railroad cars may travel over foreign lines, the applicant
for refund shall exclude lubricants, repair parts and accessories for which the
applicant is billed by the operating company when its cars are traveling over
foreign lines; however, the car miles that foreign cars travel over the lines
of the applicant for refund shall be taken into consideration in establishing
the number of miles of operation in this state and the total number of miles of
operation within and without this state for the calendar quarter. Locomotives
are not ordinarily interchanged in the same manner as railroad cars; however,
if locomotives are operated in the same manner as railroad cars, the provisions
of this Rule will also be applicable to the operation of locomotives.
History Note: Authority G.S. 105‑164.14; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993.
17 NCAC 07B .4303 APPLICATION
An interstate carrier must file Form E-581 to obtain a
refund under G.S. 105-164.14(a). A refund period is a calendar quarter. A
claim for refund covers sales and use taxes paid during a quarter. A claim for
refund is due within 60 days after the end of a quarter. The Department shall
not accept a claim for refund filed later than three years after its due date.
A claim for refund shall include only taxes paid for the calendar quarter
covered by the claim. An amended claim for refund shall be filed to correct an
understatement of a refund claimed for a prior quarter. An amended claim for
refund must be filed to correct an overstatement of a refund made for a prior
quarter.
History Note: Authority G.S. 105‑164.14; 105‑262;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; July 1, 2000; October 1,
1993; November 3, 1978.
SECTION .4400 ‑ LEASE OR RENTAL
17 NCAC 07B .4401 LEASE RECEIPTS
The gross receipts or gross proceeds derived from or the
total amount agreed to be paid for the lease or rental, within North Carolina,
of all kinds and types of tangible personal property not specifically exempt by
statute are subject to the sales or use tax at the same rate which is
applicable to the retail sale of such property. The tax shall be computed and
paid on such gross receipts, gross proceeds, or rental payable without any deduction
whatsoever for any expense incident to the conduct of business. The tax is due
and payable at the time the lessor bills the lessee for the rent whether such
billing is for the lump sum rental or on a monthly or other periodic basis.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4402 ROYALTIES
Royalties paid, or agreed to be paid, either on a lump sum
or production basis, for tangible personal property used in this state are
rentals subject to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .4403 MAINTENANCE OF LEASED PROPERTY
(a) Sales of tangible personal property to registered
lessors or retailers for the purpose of lease or rental exclusively are
wholesale sales and not subject to tax provided completed and executed certificates
of resale are furnished to the vendors of such property. Sales of lubricants,
repair parts and accessories to such lessors or retailers who use them to
repair, recondition or maintain such leased or rented personal property are
also wholesale sales when completed and executed certificates of resale are
provided to vendors of this type property. Lessors are responsible for payment
of any applicable statutory state and local tax on the cost price of such items
if they are used for a purpose other than repairing or maintaining leased or
rented property or if they are resold as such. Any tax due thereon is to be
paid to the Secretary of Revenue on the lessors' or retailers' sales and use
tax returns.
(b) When the lessee purchases lubricants and repair parts
to maintain tangible personal property being leased or rented, the lessee is
liable for payment of the applicable statutory state and local sales or use tax
on the cost price of such purchases to the vendors or to the Secretary of
Revenue. If a separate maintenance agreement for a fixed fee where no separate
charge is made for parts and labor is executed by the lessor and lessee whereby
the lessor or the lessee agrees, for a consideration separate from the lease
payments, to maintain property being leased or rented, purchases of repair
parts and lubricants by either party are subject to the tax payable by the
purchaser thereof as described in this Rule.
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑164.6; 105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; June 1, 1992;
October 1, 1991; March 1, 1984.
17 NCAC 07B .4404 EQUIPMENT FURNISHED WITH OPERATOR
If the owner of tangible personal property furnishes an
operator or crew to operate such property, such owner is not deemed to be
renting or leasing the property but is rendering a service and the receipts
therefrom are not subject to the sales or use tax. Persons purchasing repair
parts, lubricants and other tangible personal property for use in rendering
such service are liable for payment of sales or use tax at the applicable rate
on the purchase price.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4405 LEASE WITH OPTION TO PURCHASE
Sales or use tax is due on the gross receipts derived from
or the total amount agreed to be paid for the lease or rental of tangible
personal property under a lease agreement with an option to purchase. If the
agreement provides that the lessee will pay a stipulated amount at the time the
option is exercised less a credit for a portion or all of the lease payments,
the tax is due on the amount actually paid. For example, when the option is
exercised, if the purchase price of the tangible personal property is seven
hundred dollars ($700.00) and the credit allowed for lease payments under the
agreement is two hundred dollars ($200.00) on which the tax has been paid,
additional tax is due on the five hundred dollars ($500.00) at the time the
option is exercised.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4406 INSURANCE ON LEASED PROPERTY
The gross proceeds derived from or amounts agreed to be paid
for the lease or rental of all kinds and types of tangible personal property
for storage, use or consumption within this state are subject to the applicable
statutory state and local sales or use taxes. The tax shall be computed on the
gross receipts, gross proceeds or rental payable without any deduction
whatsoever for any insurance charges paid to insure the property of the lessor
or to insure the lessor against liability for damages to the property or person
of others. When the lessee purchases insurance on his own property or to
insure himself against liability for damages to the property or person of
others, insurance premiums paid by such lessee directly to the insurer or to
the lessor as agent for transmittal to the insurer are exempt from tax. If the
lessee pays such insurance premiums directly to the lessor as agent for
transmittal to the insurer, such amounts are exempt from tax provided they are
separately stated from the charges for the lease or rental of tangible personal
property in the lessor's records and on the invoice given to the lessee;
otherwise, the total amount charged by the lessor is subject to the tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991; July 5, 1980.
17 NCAC 07B .4407 LEASES FOR OUT OF STATE USE
If a lessee leases tangible personal property from a North
Carolina lessor for the original purpose of using it outside this state and if
the property is, in fact, used outside this state, the initial lease payment
will be subject to the North Carolina sales tax if the property is delivered to
the lessee in this state and immediately thereafter taken outside this state
for use. In such cases, the lessor's records shall clearly reflect the nature
of the transaction. If the property is returned to North Carolina, the
receipts from use in North Carolina are taxable. If the face amount of the
lease is paid in a lump sum, the face amount is subject to the North Carolina
sales tax.
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; July 5, 1980.
17 NCAC 07B .4408 LEASES: OUT OF STATE NEGOTIATIONS
Lessors of motor vehicles may elect to pay the highway use
tax to the Commissioner of Motor Vehicles when applying for a certificate of
title for a motor vehicle purchased for lease or rental or they may collect and
remit to the Secretary of Revenue the alternate gross receipts tax on the lease
or rental receipts derived therefrom. G.S. 105-187.1 through G.S. 105-187.11
contains the provisions of the highway use tax and alternate gross receipts tax
rates on motor vehicles. To make the election to collect and remit the tax on
rental receipts, the lessor shall complete a Form MVR 608 provided by the
Division of Motor Vehicles at the time of applying for a certificate of title.
Once made, an election is irrevocable for that motor vehicle. If North
Carolina Lessors lease motor vehicles to out‑of‑state lessees to be
located, domiciled or assigned in this state for use in interstate operations,
the lessors shall remit the highway use tax to the Commissioner of Motor
Vehicles when applying for a certificate of title for the vehicles or collect
and remit the alternate gross receipts tax on the lease or rental receipts
notwithstanding that the lease may be negotiated outside North Carolina or that
the vehicles are delivered to the lessees at a point outside this state or are
registered outside this state. If North Carolina lessors lease motor vehicles
to out‑of‑state lessees for use exclusively in a state other than
North Carolina and deliver the vehicles to the lessees at a point outside this
state, the lessor is not liable for the highway use tax on the vehicle or the
alternate gross receipts tax on the lease receipts.
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105-187.5; 105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 1996; May 1, 1994; October 1,
1993; July 5, 1980.
17 NCAC 07B .4409 LEASED PROPERTY: MAINTENANCE
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980;
Repealed Eff. January 1, 1982.
17 NCAC 07B .4410 ASSIGNMENT OF LEASE
(a) Assignment of a Lease Contract and Creation of a
Security Interest in the Leased Property. Where upon a recourse basis a lessor
assigns a lease contract and gives a security interest in the leased property
which is designated as such but retains title to such property, the lessor
remains liable for collecting and remitting tax on the lease receipts
notwithstanding that the lessor does not receive rental payments directly from
the lessee. However, if the assignee enforces the security agreement and
acquires title to the leased property, he becomes the lessor of such property
and liable for collecting and remitting tax on the receipts from its lease or
rental.
(b) Assignment of a Lease Contract Together With its Right,
Title and Interest in the Leased Property For Security Purposes. Where for
security purposes and upon a recourse basis, a lessor assigns a lease contract
together with its right, title and interest in the leased property, but the
property will revert to the lessor at the expiration of the lease, the lessor
remains liable for the collecting and remitting tax on the lease receipts
notwithstanding that the lessor does not receive rental payments directly from
the lessee.
(c) Assignment of a Lease Contract and All Right, Title and
Interest in the Leased Property. When a lessor assigns a lease contract
together with all right, title and interest in the leased property, the
assignment is not for security purposes and the assignor does not retain any
ownership rights in the contract or the property. The assignee has no recourse
against the assignor. The assignee must be registered for sales and use tax
purposes with this state and is liable to collect and remit the tax on the
remaining lease receipts. The assignor shall obtain a valid certificate of
resale from the assignee bearing the assignee's North Carolina sales and use
tax registration number.
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; February 1, 1987.
17 NCAC 07B .4411 EXTENSION OF LEASES
When tangible personal property, the sale of which is
subject to a maximum tax, is leased for a definite stipulated period of time,
the lease payments during the lease period are subject to the maximum tax. If
the original lease contains provisions for extension either by notification or
by failure to notify the lessor of termination, the extended term of the lease
is part of the original lease and the maximum tax would apply to the entire
lease including any extension under the terms of the original lease. If,
however, the original lease does not contain provisions for extension at the
option of the lessee, whether by action or nonaction, but a new lease agreement
is subsequently entered into granting an extension or a new lease, there would
be a second lease which would not have the benefit of sales tax payments made
by reason of the first lease with respect to the maximum tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4412 SALE OF LEASED PROPERTY
When tangible personal property which has been leased is
sold at retail, the sale is subject to the applicable retail rate of tax
without regard to any tax which has been collected and remitted to the
Department on receipts from the lease or rental of the property.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4413 CONDITIONAL SALES CONTRACT
A conditional sales contract is an agreement that requires
the following:
(1) The transfer of title under a security
agreement or deferred payment plan upon completion of the required payments; or
(2) The transfer of title upon completion of
required payments and payment of an option price that does not exceed one
hundred dollars ($100.00) or one percent of the total required payments.
Any applicable statutory state and local sales and use tax
for a conditional sales contract is due upon delivery of the tangible personal
property to the purchaser.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993.
17 NCAC 07B .4414 GOLF DRIVING RANGE FEES
Charges by golf driving ranges for the use of the range are
not subject to sales or use taxes. In such cases, the person who pays the
charge is generally entitled to the use of a golf club, basket of balls and the
driving range; thus, there is no sale or rental of tangible personal property.
Sales or rentals of tangible personal property by such businesses are subject
to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .4415 SKATING RINK FEES
Charges for the use of a skating rink or bowling alley are
not subject to sales or use taxes; however, if such businesses rent tangible
personal property, such as skates and shoes, charges for same are subject to
sales tax. Sales of tangible personal property by such businesses are subject
to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44; Article
46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .4416 HIGHWAY USE TAX AND ALTERNATE GROSS
RECEIPTS TAX
History Note: Authority G.S. 105‑187.3; 105‑187.4;
105‑187.5; 105‑187.6; 105‑187.8; 105‑187.9; 105‑187.11;
105‑262;
Eff. October 1, 1991;
Amended Eff. June 1, 1992;
Repealed Eff. October 1, 1993.
SECTION .4500 ‑ LAUNDRIES: DRY CLEANING PLANTS:
LAUNDERETTES: LINEN RENTALS: AND SOLICITORS FOR SUCH BUSINESSES
17 NCAC 07B .4501 RECEIPTS OF LAUNDRIES: ETC.
(a) The gross receipts derived from the following are
subject to the applicable statutory state and local sales or use tax:
(1) services rendered by pressing clubs,
cleaning plants, hat blocking establishments, dry cleaning plants, laundries,
including wet or damp wash laundries and businesses known as launderettes and
launderalls, and all similar type businesses;
(2) the rental of clean linen, towels, wearing
apparel and similar items;
(3) soliciting cleaning, pressing, hat blocking
and laundry or linen rental business;
(4) rug cleaning services performed by persons
operating rug cleaning plants or performed by any of the businesses named in
this Rule when the rug cleaning service is performed at the plant. Receipts
from rug cleaning services performed at the customer's location by any of the
businesses included in this Rule are not subject to sales and use tax;
(5) charges for laundering or dry cleaning
linen, towels, wearing apparel and similar items owned by lessors which is held
for lease or rental.
Retail sales of detergents, bleaches and other taxable items
of tangible personal property through vending machines are subject to the applicable
statutory state and local sales or use tax. With the exception of tobacco
products, the receipts are taxed on 50 percent of the total amount for which
the property is sold in the vending machine.
(b) Charges by the businesses named in Paragraph (a) of
this Rule for alterations or storage of garments are not a part of the gross
receipts subject to tax when the charges are separately stated on their
invoices and in their records. When the charges are not separately stated, the
total charge is subject to the applicable statutory state and local sales or
use tax.
(c) Sales to the businesses named in Paragraph (a) of this
Rule, other than lessors, of thread, buttons, zippers, pockets and other
similar tangible personal property for use or consumption in making repairs or
alternations to garments being laundered, cleaned or pressed are subject to the
applicable statutory state and local sales or use tax. Sales to lessors of the
items for use or consumption in making repairs or alterations to garments held
for lease or rental which are being laundered, cleaned or pressed are exempt
from sales or use tax.
(d) When in addition to the services named in Paragraph (a)
of this Rule, the businesses make retail sales of tangible personal property
for which a separate charge is made, the sales are subject to the applicable
statutory state and local sales tax. Any charge for labor or services rendered
in applying or installing the property are not subject to tax provided the
charges are segregated from the charge for the tangible personal property sold
on the invoice given to the customer at the time of the sale and in the
vendor's records; otherwise, the total amount is subject to tax.
(e) Retailers of the services named in Paragraph (a) of
this Rule are liable for the applicable statutory state and local sales or use
tax on the gross receipts derived from their services; however, the tax does
not apply to gross receipts from the services performed for resale by retailers
that pay the tax on their receipts from the services.
History Note: Authority G.S. 105-164.4; 105-262;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; April 1, 1997; October 1,
1993; June 1, 1992; October 1, 1991; August 1, 1988.
17 NCAC 07B .4502 FUEL FOR LAUNDRIES: ETC.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991; February 1, 1986; May 1,
1985;
Repealed Eff. October 1, 1993.
17 NCAC 07B .4503 EQUIPMENT AND SUPPLIES FOR LAUNDRIES:
ETC.
(a) Sales to laundries, dry cleaning plants and similar
businesses of machinery used in the direct performance of the laundering or the
pressing and cleaning service and parts and accessories thereto are exempt from
sales and use tax. The following items are exempt when sold to the
herein-named businesses:
(1) washing machines, water heaters, water
softener tanks, central control collection systems, pressing machines, marking
machines, packaging machines, folding machines and similar cleaning machines;
(2) hydraulic fluids used in laundry and dry
cleaning machinery;
(3) boiler compounds used in boilers furnishing
water or steam to the laundering, pressing or cleaning machinery;
(4) steam hose leading directly from the boiler
to the laundering and dry cleaning machinery;
(5) press pads and covers for laundering and
dry cleaning machinery;
(6) baskets, hampers, casters, or other
containers used between the laundering and cleaning processes to transport or
contain garments being laundered or cleaned;
(7) carbon and carbon filters used for
reprocessing cleaning compounds;
(8) lint rolls and refills therefore;
(9) conveyors used to transport garments along
the laundering, cleaning, and pressing line during the process but not
conveyors used before the laundering, cleaning, and pressing process begins or
after it has been completed;
(10) boiler room machinery, including valves,
fittings and water pumps; and
(11) transformers located on or adjacent to motors
which power machinery used in the direct performance of laundering and cleaning
services.
(b) The following items are not classified as laundering,
pressing or dry cleaning machinery or parts and accessories thereto and are,
therefore, subject to the applicable statutory state and local sales or use tax
when sold to the herein-named businesses:
(1) coin operated musical devices, amusement
devices, coin changers, vending machines and repair or replacement parts for
such machines;
(2) baskets, hampers, casters, or containers
used for general purposes such as to pick up soiled garments or deliver clean
garments;
(3) smoke stacks, including the steel ladders
attached thereto;
(4) wiring used in the general wiring system
and the transformers used in connection therewith;
(5) sewing machines used in repairing or
altering the customers' property and the replacement or repair parts to such
machines;
(6) tailoring supplies such as buttons, threads
and zippers for use in repairing or altering garments for which no charge is
made to the customer;
(7) letterheads, monthly reports, envelopes and
other office supplies;
(8) protective clothing for employees such as
rubber gloves, aprons, protective shoes, etc. whether paid for by the employer
or the employee;
(9) steam hose or pipe used in the general
heating system;
(10) janitorial supplies;
(11) office furniture, fixtures and equipment,
including cash registers;
(12) uniforms for employees;
(13) advertising materials;
(14) structural or building materials, supplies, fixtures
and equipment which shall become a part of or be annexed to any building or
structure being erected, altered or repaired;
(15) equipment used in the storage process to
revitalize furs;
(16) conveyors used before or after the
laundering, pressing and cleaning process to transport garments but not those
used to move the garments along the laundering, pressing and cleaning line;
(17) lubricants used in laundering, pressing, or
cleaning machines.
(18) transformers used in connection with general
wiring and power supply; and
(19) water softener chemicals.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993; October 1,
1991; January 1, 1982.
17 NCAC 07B .4504 LAUNDRY SUPPLIES
Mesh bags and tickets which accompany the
garment through the laundering and cleaning process for identification purposes
are exempt from sales and use tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993.
17 NCAC 07B .4505 MISCELLANEOUS LAUNDRY EQUIPMENT
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
17 NCAC 07B .4506 GARMENT REPAIRS AND STORAGE
Charges by commercial laundries and dry cleaners for
repairs, alterations and storage of garments are not subject to sales tax when
such charges are separately stated on the invoice given to the customer and in
the vendor's records. Sales of buttons, thread, zippers, and cloth for pockets
and similar items to such businesses for use or consumption in repairing,
altering or storing the customers' property are subject to the applicable
statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .4507 RUG REINSTALLATION CHARGES
The charge for reinstalling a rug after it has
been cleaned is not subject to the tax provided that the charge for
reinstallation and the charge for cleaning are separately stated on an invoice
given by the cleaning plant to its customers.
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4508 LAUNDRY BUSINESS: INTERSTATE
When a North Carolina dry cleaning firm performs cleaning
services within this state, the place where the garments are delivered is the
determining factor in sourcing the sale for sales and use tax purposes. If the
solicitor delivers the garments in North Carolina, the applicable statutory
state and local sales or use tax is due. If the garments are delivered outside
North Carolina, this state's tax is not due notwithstanding whether the
service is performed in this State. When a nonresident cleaning plant sends an
employee into this state to pick up garments which are cleaned at the plant's
location in another state and delivered to the customer in this state, the
charge to the North Carolina customer is subject to the applicable statutory
state and local sales and use tax. When a nonresident solicitor comes into
this state to solicit cleaning business on his own behalf which he will have
cleaned by a nonresident cleaning plant, the solicitor is liable for collecting
and remitting the tax on the gross receipts derived from soliciting such
business in this state.
History Note: Authority G.S. 105-164.4; 105-262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993.
17 NCAC 07B .4509 UNIFORM RENTALS
Uniform rental businesses are not soliciting laundry or
cleaning but are soliciting rental business for themselves. The total charge
to such businesses by commercial laundries and dry cleaners for laundering or
dry cleaning articles of tangible personal property which are to be leased or
rented are subject to the applicable statutory state and local sales or use
tax.
History Note: Authority G.S. 105‑164.4; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .4510 INDEPENDENT CLEANING SOLICITORS
An independent operator that owns his truck and solicits
business but engages a laundry, dry cleaning, or hat blocking firm or similar
type business to perform the laundering, cleaning, or other service is liable
for collecting and remitting the applicable statutory state and local sales or
use tax on his gross receipts. If the solicitor is not registered with the
Department of Revenue for remitting the tax on his gross receipts, the firm
performing the laundering, cleaning or similar type services shall collect and
remit the tax on the total charge for the services performed for the
independent operator without any deduction of any allowance to the solicitor.
The firm performing the service shall secure from the solicitor a Streamlined
Sales and Use Tax Agreement Certificate of Exemption, Form E-595E, which shall
be accepted as evidence that the solicitor is registered for payment of the tax
and as authority for not charging tax on the gross receipts from the service
performed for the solicitor.
History Note: Authority G.S. 105-164.4; 105-164.5; 105-262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993.
17 NCAC 07B .4511 DYEING OF GARMENTS
When North Carolina laundries or dry cleaning plants accept
dyeing jobs which they ship to out‑of‑state dyers for dyeing, the North Carolina laundries or dry cleaning plants are liable for collecting and remitting the
applicable statutory state and local sales or use tax on the charges to their
customers for the dyeing work.
History Note: Authority G.S. 105‑164.4; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993.
17 NCAC 07B .4512 EXCLUSION OF TAX FROM RECEIPTS
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 5, 1980;
Repealed Eff. August 1, 1988.
17 NCAC 07B .4513 INDUCEMENTS TO CLEANING SERVICES
When silver dollars are given to customers by
dry cleaning establishments or other vendors as an inducement to business, the
tax is due on the total amount charged to the customer for the cleaning service
or tangible personal property without regard to credit for the amount of the
inducement.
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4514 CLEANING MACHINERY REPAIRS
Sales of welding rods to commercial laundries and dry
cleaning operators for use in repairing machinery used directly in the
laundering or dry cleaning service are exempt from sales and use tax. Sales of
oxygen and acetylene to such operators for use in repairing machinery are
subject to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105-164.4; 105-164.6; 105-262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. August 1, 2009; October 1, 1993.
17 NCAC 07B .4515 FUEL FOR CLEANING PLANTS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. February 1, 1986; May 1, 1985;
Repealed Eff. April 1, 1986.
SECTION .4600 ‑ MOTOR VEHICLES AND BOATS
17 NCAC 07B .4601 SALES AND PURCHASES OF AUTOMOBILES AND
OTHER MOTOR VEHICLES
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑164.6; 105‑164.13; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991; July 1, 1990; February 1,
1988; March 1, 1987;
Repealed Eff. October 1, 1993.
17 NCAC 07B .4602 BOATS, BOAT TRAILERS, AND ACCESSORIES
A retail sale of a boat with a boat trailer is considered to
be the sale of two separate articles. The retail sale of the boat trailer, a
motor vehicle within the meaning of the statute, is subject to the three
percent highway use tax. The retail sale of the boat is subject to the three
percent rate of tax with a maximum tax of one thousand five hundred dollars
($1,500.00) applicable to the sale of any boat except for those sales exempt
from tax under the provisions of G.S. 105‑164.13(9). The tax shall be
computed on the gross sales price of the boat, including charges for the boat
motor, fenders, boat and motor controls, compasses, windshields, horns, lights,
or any other parts or accessories, all of which must be attached thereto at the
time of delivery to the purchaser, labor for installing such parts and
accessories, freight or any other charge for preparing the boat for sale. Life
jackets, life rings, cushions, flares, fire extinguishers and rope are
considered to be safety equipment rather than accessories to the boat and sales
of such items at retail are subject to the general State tax and any applicable
local sales or use tax notwithstanding they are sold with the boat. Parts and
accessories, including boat motors, fenders, boat and motor controls, lights,
windshields, horns and other above‑named items sold separately from the
sale of a boat are also subject to the general State tax and any applicable
local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. August 1, 2002; October 1, 1993; October 1,
1991; July 1, 1990; January 3, 1984.
17 NCAC 07B .4603 MOTOR VEHICLE SERVICE BUSINESSES
(a) Persons engaged in the business of repairing
automobiles and other motor vehicles are liable for collecting and remitting
the applicable statutory state and local sales or use tax on the sales price of
any parts, accessories or other tangible personal property which they furnish
in connection with repairing their customers' vehicles. Charges for labor to
install the parts, accessories and similar property are not subject to tax if
such charges are separately stated on the customers' invoices and in the
vendor's records; otherwise, the total charges are subject to the tax.
(b) Sales of repair parts, accessories and other tangible
personal property to automotive repair shops for resale in connection with
repairing their customers' vehicles are not subject to tax when supported by a
Streamlined Sales Tax Agreement Certificate of Exemption, Form E-595E.
(c) Sales of tools, equipment and supplies to automotive
repair shops for use in conducting their business are subject to the applicable
statutory state and local sales or use tax and vendors making such sales are
required to collect and remit same. Certificates of exemption are not
applicable to sales of this nature. If, in addition to repairing motor
vehicles, a repair shop actually makes sales of tools, equipment, supplies, and
similar items to its customers, such repair shop may purchase such items under
a certificate of exemption. Vendors selling tools, equipment, supplies and
similar items to a repair shop, or similar business which does not ordinarily
and customarily engage in reselling such articles at retail shall require from
such vendee a certificate of exemption with each order for such articles. Such
vendee is then liable for collecting and remitting the applicable statutory
state and local sales or use tax on its sales of tools, equipment, supplies and
similar items.
(d) The total charge for all tangible personal property,
including windshields, window glass, seat covers, floor mats, head liners,
runners, channels, pig rings, felt, tacks, screws, thread, tape, windlass, welt
cord, and similar items installed in or upon motor vehicles or other articles
by persons selling and installing such property are subject to the applicable
statutory state and local sales or use tax. The charge for labor performed or
other services rendered in installing the same are also subject to the applicable
statutory state and local sales or use tax unless such charges are separately
stated on the customer's invoice and in the vendor's records. All tax due
hereunder must be collected and remitted to the department by the person
selling and performing such installation service. Sales of tangible personal
property for resale in connection with glass repair and reupholstery jobs are
not subject to tax when supported by properly executed certificates of exemption;
however, any tools, supplies or other property sold for use in performing such
work are subject to the applicable statutory state and local sales or use tax.
(e) Persons engaged in the business of painting or
refinishing motor vehicles are the users or consumers of tangible personal
property which they purchase for use in the performance of such services. Sales
to such businesses of paint, primer, sandpaper and belts, masking tape, putty
and other finishing or refinishing materials, including those named in
Paragraph (f) of this Rule, tools, supplies and any other tangible personal
property for use in body repair, painting or refinishing work are subject to
the applicable statutory state and local sales or use tax. If, in addition to
such body repair, painting or refinishing work, said businesses purchase
tangible personal property such as automobile fenders, doors, windshields or
other parts or accessories, and sell the same to their customers, such
businesses are liable for collecting and remitting the tax on such sales
irrespective of whether the sales are made in connection with repair or
refinishing jobs.
(f) Sales of soap, wax, polish, glaze, undercoating,
scotchguard, finish protectants and other related materials to motor vehicle
dealers and other businesses that use such materials to wash, wax, and/or apply
a protective coating to automobiles are subject to the applicable statutory
state and local sales or use tax thereon.
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.5; 105‑164.6; 105‑262; Article 39; Article 40;
Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; October 1, 1993; June 1,
1992; October 1, 1991.
17 NCAC 07B .4604 SPECIAL EQUIPMENT‑ACCESSORIES:
MOTOR VEHICLES
Persons selling pulling devices, hole digging devices,
aerial working devices or other such special accessories at retail which they
mount upon a motor vehicle chassis or body belonging to others must collect and
remit the applicable statutory state and local sales or use tax thereon. Any
charges for labor or services rendered in installing or applying such items are
not subject to tax provided such charges are segregated from the charge for the
tangible personal property sold on the invoice given to the customer at the
time of sale and in the vendor's records; otherwise the total amount is subject
to tax.
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. September 1, 2006; October 1, 1993; June 1,
1992; October 1, 1991; July 1, 1990.
17 NCAC 07B .4605 MOTOR VEHICLES TRADED IN
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. February 8, 1981;
Repealed Eff. January 1, 1982.
17 NCAC 07B .4606 MOTOR VEHICLES USED BY DEALERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 1990; March 1, 1984;
Repealed Eff. October 1, 1993.
17 NCAC 07B .4607 MOTOR VEHICLE KITS
17 NCAC 07B .4608 MOTOR VEHICLES: MILITARY PERSONNEL
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. January 3, 1984; July 5, 1980;
Repealed Eff. October 1, 1990.
17 NCAC 07B .4609 FIRE TRUCKS AND EQUIPMENT
Retail sales of axes, brooms, buckets, shovels, ropes,
general purpose tools, gas masks, first aid kits, blankets, portable pumps,
portable fire extinguishers and like articles are considered to be other fire
fighting equipment rather than accessories to the fire truck, and sales of such
items at retail are subject to the applicable statutory state and local sales
or use tax without any maximum tax applicable thereto notwithstanding such
sales are made to the above type customers or that the items are sold with fire
trucks. Privately owned fire trucks or vehicles on which fire fighting equipment
has been mounted that are used only for fire fighting purposes are classified
as special mobile equipment, and sales thereof are subject to the applicable
statutory state and local sales or use tax. Sales of repair parts to
municipalities, counties, rural fire protection districts, and industrial users
for use in repairing fire trucks are subject to the applicable statutory state
and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991; July 1, 1990; January 3, 1984.
17 NCAC 07B .4610 MOTOR VEHICLES: SALES BY FEDERAL
GOVERNMENT
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. July 1, 1990.
17 NCAC 07B .4611 PARTS FROM JUNKED MOTOR VEHICLES
Persons, firms, or corporations engaged in the business of
making retail sales of used parts from junked motor vehicles are liable for
collecting and remitting the applicable rate of tax on such sales. When traded‑in
or repossessed articles are dismantled and the parts therefrom are sold at
retail by such businesses, the parts lose their identity as traded‑in or
repossessed articles and are subject to the tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; March 1, 1993; July 5,
1980.
17 NCAC 07B .4612 MOTOR VEHICLE SELLING EXPENSES
17 NCAC 07B .4613 MOTOR VEHICLE LESSORS
History Note: Authority G.S. 105‑164.3; 105‑164.4;
105‑164.6; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1990; July 1, 1990;
Repealed Eff. October 1, 1993.
17 NCAC 07B .4614 PICKUP CAMPERS: TRAILERS
Retail sales of camper trailers which are designed to run on
the streets and highways and which are pulled by a self‑propelled vehicle
are classified as sales of motor vehicles and exempt from sales tax. Retail sales
of such camper trailers are subject to the highway use tax. Retail sales of
slide‑in pickup camper units are subject to the applicable statutory
state and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991; October 1, 1990; July 1, 1990.
17 NCAC 07B .4615 MANUFACTURED HOMES
(a) The tax is to be computed on the gross sales price of
the manufactured home without any deduction whatever on account of any trade‑in
credit or allowance. The gross sales price of the manufactured home includes
any parts or accessories installed thereon at the time of the sale and delivery
to the customer, labor for installing such parts or accessories, freight, or
any other charges for preparing the manufactured home for sale. Parts or
accessories sold separately from the sale of a manufactured home are subject to
the applicable statutory state and local sales or use tax; however, charges for
labor to install such parts or accessories are not subject to tax when
separately stated on the customer's invoice and in the vendor's records.
(b) Any furniture, appliances or accessories placed in a
manufactured home by the manufacturer or the dealer and which are a part of the
sale and delivery of the manufactured home to a customer are included in the
gross sales price of the manufactured home, subject to the two percent rate of
tax with a maximum tax of three hundred dollars ($300.00) applicable to the
sale. Anchor bolts, tie‑downs, skirting, steps, and central or window
air‑conditioning units that are to be attached to a manufactured home and
that are a part of the sale of a manufactured home at the time of delivery to
the customer or at the time of installation by a dealer for his customer are
included in the sales price subject to the two percent rate of tax with a
maximum tax of three hundred dollars ($300.00) applicable to the sale of each manufactured
home.
(c) Any charge made by a vendor to a customer for running
gear upon which a manufactured home is delivered is a part of the gross sales
price of such manufactured home subject to the two percent rate of tax, with a
maximum tax of three hundred dollars ($300.00), notwithstanding that such
charge may be separately stated from the charge for the manufactured home on
the invoice given to the customer at the time of the sale. The return of
running gear to a dealer for credit or refund of such charge does not alter the
rate of tax applicable to the sale, and the customer is not entitled to a
credit or refund of the tax paid on the charge for the running gear returned or
sold to the dealer.
(d) Any sale of furniture, appliances and other accessories
to a customer by a dealer after the sale of the manufactured home has been
consummated is subject to the applicable statutory state and local sales or use
tax. Cement blocks which are used to prepare or build the foundation for or to
level a manufactured home, the sewer pipe used to connect a manufactured home
to the septic or sewer system, and wedges used for leveling a manufactured home
do not come within the definition of accessories attached at the time of
delivery and, therefore, purchases of these items by dealers or other users or
consumers in this state to be used in the installation of a manufactured home
are subject to the applicable statutory state and local sales or use tax.
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. September 1, 2006; October 1, 1993; October
1, 1991; July 1, 1990; January 3, 1984.
17 NCAC 07B .4616 DOUBLE‑WIDE MOBILE HOMES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. January 3, 1984; July 5, 1980; March 24,
1978;
Repealed Eff. July 1, 1990.
17 NCAC 07B .4617 MOBILE CLASSROOM, OFFICE AND STORAGE
TRAILERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 1990; January 3, 1984; July 5, 1980;
March 24, 1978;
Repealed Eff. October 1, 1993.
17 NCAC 07B .4618 MOTOR VEHICLE SUPPLIES
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1991;
Repealed Eff. June 1, 1992.
17 NCAC 07B .4619 HIGHWAY USE TAX
History Note: Authority G.S. 105‑187.3; 105‑187.4;
105‑187.5; 105‑187.6; 105‑187.8;
105‑187.9; 105‑262;
Eff. October 1, 1990;
Amended Eff. June 1, 1992; October 1, 1991;
Repealed Eff. October 1, 1993.
SECTION .4700 ‑ PRINTERS AND NEWSPAPER OR MAGAZINE
PUBLISHERS
17 NCAC 07B .4701 COMMERCIAL PRINTERS AND PUBLISHERS
(a) All retail sales of tangible personal property by
commercial printers or publishers are subject to the applicable statutory state
and local sales or use tax unless the sales are subject to a lesser rate of tax
under the provisions of G.S. 105‑164.4(a) or are exempt under the
provisions of G.S. 105‑164.13. The following transactions are also
exempt from sales or use tax:
(1) charges for advertising space in
newspapers, magazines and other publications;
(2) charges made by printers for imprinting or
binding books or forms or other similar items which are owned by their
customers;
(3) Printed material which is sold by a
retailer to a purchaser within or without this state when the printed material
is delivered by the printer directly to a mailing house or to a common carrier
or to the United States Postal Service for delivery to a mailing house in this
state which will preaddress and presort the material and deliver it to a common
carrier or to the United States Postal Service for delivery to recipients
outside this state designated by the purchaser.
(A) Sales of printed material by a retailer located
within or without this state which is delivered directly to the purchaser in
this state for the original purpose of preparing and delivering the printed
material to the United States Postal Service or a common carrier for delivery
to prospective customers or other recipients outside this state are exempt from
sales and use tax provided the purpose is consummated. A purchaser of the
printed material for preparation and delivery to prospective customers and
other recipients outside this state must furnish the vendor a written statement
certifying that the printed material is being purchased for use in a mailing
program which is in place at the time of purchase; otherwise, the vendor must
collect and remit the tax on the sales. Sales of printed materials to a user
or consumer in this state to be placed in the purchaser's inventory for use as
needed are subject to sales or use taxes notwithstanding that all or a portion
of the printed material may be delivered to the United States Postal Service or
a common carrier for delivery to prospective customers or other recipients
outside this state.
(B) A retailer who sells printed material delivered to a
common carrier or the United States Postal Service for delivery to the
purchaser at a point within this state who prepares the material to be mailed
to prospective customers or other recipients without charge and transports the
material outside this state to be delivered to the United States Postal Service
or a common carrier or to a mailing house outside this state for delivery to
designated recipients is liable for sales or use tax except as provided in this
Rule.
(b) Retail sales of advertising circulars, catalogues,
booklets, pamphlets, forms, tickets, letterheads, envelopes and similar items
and retail sales of books, magazines, periodicals, newspapers and other
publications are subject to the applicable statutory state and local sales or
use tax unless the sales are exempt from tax under the provisions of G.S. 105‑164.13.
When publications, other than magazines, are sold by subscription, the tax
accrues at the time the subscription is accepted.
(c) Sales to commercial printers and publishers of
machinery and equipment and parts therefor and accessories thereto for use
directly in the production of newspapers, magazines and other printed matter
for sale are exempt from sales tax. Included herein are custom made plates and
dies when title thereto does not pass to the printers' customers. Sales to
commercial printers and publishers of tangible personal property such as wood
and metal which is used to fabricate plates and dies for use in the production
of printed matter for sale are exempt from sales tax when title to the plates
and dies does not pass to the printers' customers. Sales to commercial
printers and publishers of machinery, equipment, film, and similar items of
tangible personal property for use or consumption directly in the production of
the plates and dies are also exempt from sales tax. It is a printing trade
practice that title to lithographic and gravure plates and dies is retained by
the printer or publisher. Unless it is otherwise agreed in writing, the items
purchased by the printer or publisher are exempt from sales tax.
(d) Sales to commercial printers of custom made plates and
dies for resale are exempt from sales or use tax when supported by Streamlined
Sales and Use Tax Agreement Certificates of Exemption, Form E-595E. Sales to
commercial printers of tangible personal property as wood and metal which
becomes a component part of printing plates produced by the printers for sale
to customers are likewise exempt from sales or use tax when supported by
certificates of exemption. However, sales to commercial printers of machinery,
equipment, film, and similar items of tangible personal property which do not
enter into or become a component part of the plates and dies but are used or
consumed by the printer in the direct production of the plates and dies are
exempt from sales tax. When, at the request of the customer, commercial
printers purchase custom made printing plates and dies for use in the direct
production of the printed matter or when they purchase wood and metal which
becomes a component part of printing plates and dies fabricated by the printer
for use in the direct production of printed matter and title to the plates and
dies passes to the printers' customers, the items may be purchased for resale.
The printer is liable for collecting and remitting the applicable statutory
state and local sales or use tax on the total retail sales price of the plates
and dies including charges for tangible personal property and art work or any
other services that go into the manufacture or delivery thereof. In such
cases, the printer's sales invoices and records must show that the plates and
dies are actually sold to the customer; otherwise, the items are deemed to have
been used by the printer, and the cost price of same is exempt from sales tax.
(e) Sales to commercial printers and publishers of tangible
personal property which is not resold as such or which does not become an
ingredient or component part of the tangible personal property which they
produce for sale or which is not production machinery or parts therefor and
accessories thereto are subject to the applicable statutory state and local
sales or use tax.
(f) The provisions of Paragraph (d) of this Rule have no
application to sales of printing equipment and supplies to firms which operate
print shops for the production of printed matter for their own use and not for
sale. Purchases of printing equipment and supplies by such firms are subject
to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.5;
105‑164.6; 105‑164.13; 105‑262; 105‑264; Article 39;
Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; April 1, 2001; October 1,
1993; June 1, 1992; October 1, 1991; February 1, 1988.
17 NCAC 07B .4702 PRINTING OF CONTAINERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. April 1, 2006.
17 NCAC 07B .4703 PRINTING CHARGES
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976;
Repealed Eff. January 3, 1984.
17 NCAC 07B .4704 PLATES FOR PRINTING CONTAINERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. November 1, 1982.
17 NCAC 07B .4705 PRINTING SURFACE SUPPLIES
17 NCAC 07B .4706 OFFSET PRINTING EQUIPMENT
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; October 1, 1991;
Repealed Eff. April 1, 2006.
17 NCAC 07B .4707 PRINTING CHEMICALS
Sales of chemicals to commercial printers or publishers
which enter into or become an ingredient or component part of printed matter
which such purchasers sell are exempt from sales and use tax. Chemicals used
by commercial printers and publishers for sanitation purposes are subject to
the applicable statutory state and local sales or use tax.
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; July 5, 1980.
17 NCAC 07B .4708 POSTAGE CHARGES BY PRINTERS
When a printer purchases postal cards or stamped envelopes
and prints and sells them to customers for use, the printer is liable for
collecting and remitting the applicable statutory state and local sales or use
tax on the charge to the customer; except the postage charges on the printed
cards or envelopes are exempt from tax when separately stated on the customer's
invoice.
History Note: Authority G.S. 105‑164.3; 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; July 5, 1980.
17 NCAC 07B .4709 BOOKBINDING SUPPLIES: PRINTERS
Sales of padding cement, stripping tape and stitching wire
used to bind or join forms, booklets, etc., printed by commercial printers for
sale are exempt from tax as an ingredient or component part of the manufactured
products.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .4710 BOOKBINDERS
(a) Persons engaged in the business of binding books,
magazines, or other printed matter belonging to other persons are rendering
services, and the receipts therefrom are not subject to sales or use tax.
Sales of cloth, leather, cardboard, glue, thread or other such items of
tangible personal property to bookbinders for use in performing such services
are subject to the applicable statutory state and local sales or use tax.
(b) Sales of cloth, leather, cardboard, glue, thread or
other such items of tangible personal property to registered bookbinders for
use in binding their own books, magazines or other printed matter for sale or
for use in making loose‑leaf or detachable binders for sale are wholesale
sales and are exempt from tax when supported by properly completed Streamlined
Sales Tax Agreement Certificates of Exemption, Form E-595E. Such bookbinders
must collect and remit the applicable statutory state and local sales or use
tax on their retail sales of tangible personal property.
History Note: Authority G.S. 105‑164.4; 105‑164.5;
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.
17 NCAC 07B .4711 GAS SOLD TO PRINTERS
17 NCAC 07B .4712 METAL FOR MAKING TYPE
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; May 1, 1985;
Repealed Eff. April 1, 2006.
17 NCAC 07B .4713 TYPEWRITERS SOLD TO PRINTERS
Typewriters used for administrative purposes are subject to
the applicable statutory state and local sales or use tax.
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.
17 NCAC 07B .4714 MOUNTING TAPE SOLD TO PRINTERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. April 1, 2006.
17 NCAC 07B .4715 NEWSPAPER PUBLISHERS: MACHINERY
Sales of machines to newspaper publishing companies for use
in printing their customers' addresses are subject to the applicable statutory
state and local sales or use tax without any maximum tax applicable thereto.
Sales of addressograph plates to commercial printers for use in the mailing and
shipping process are subject to the applicable statutory state and local sales
or use tax.
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.
17 NCAC 07B .4716 TYPESETTING
Charges made by typesetters for setting type for users, are
charges for services rendered and receipts therefrom are exempt from tax.
Typesetters are liable for remitting the applicable statutory state and local
sales or use tax on purchases of metal or other tangible personal property for
use in performing such services. Charges by typesetters to commercial printers
for reproduction proofs used in the production of printed matter are not
subject to the tax. Purchases of proof paper and ink by typesetters for use in
the production of proofs for sale are subject to the applicable statutory state
and local sales or use tax.
History Note: Authority G.S. 105‑164.3; 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; October 1, 1990.
17 NCAC 07B .4717 PHOTOGRAPHS: NEWSPAPERS
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. April 1, 2006.
17 NCAC 07B .4718 REPRODUCTION PROOFS
Sales of reproduction proofs to commercial printers to be
used to produce negatives which are then used to produce plates for the
printing of tangible personal property for sale are exempt from tax.
History Note: Authority G.S. 105‑164.3; 105‑262;
Eff. February 1, 1976.
SECTION .4800 ‑ BASIS OF REPORTING
17 NCAC 07B .4801 VENDOR'S RECORDS
Every vendor must keep adequate and complete records as
required by G.S. 105‑164.31 to determine the amount of sales and use tax
for which he may be liable. Vendors having both cash and credit sales may
elect to report their tax liability on either the cash or accrual basis of
accounting provided their records are kept in such a manner that they can
determine their tax liability correctly on the basis used. If a taxpayer
wishes to change from one basis of reporting to another, he must apply to the
Secretary of Revenue for permission to make such change.
History Note: Authority G.S. 105‑164.22; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993.
17 NCAC 07B .4802 ACCRUAL BASIS
When a vendor elects to report and pay tax on the accrual
basis he must keep records which disclose a separate accounting of taxable and
nontaxable sales. The vendor must pay tax on the total sales price of all
taxable tangible personal property sold during the month covered by the return,
whether or not such sales are cash, credit, installment or conditional sales
and whether or not the vendor retains the installment and conditional sales
contracts or sells or assigns them to others and without regard to any finance
reserve withheld on finance paper sold or assigned to others. Finance charges,
service charges or interest from credit extended under conditional sales
contracts providing for deferred payment of the purchase price are not subject
to tax if such charges are separately stated on the invoices given to the
customers at the time of sale and in the vendor's records of sales. If, in
reporting on the accrual basis, accounts of purchasers representing taxable
sales on which the tax has been paid are found to be worthless and actually
charged off for income tax purposes, the amount charged off representing
taxable sales may at corresponding periods be deducted from gross sales
provided the vendor maintains records disclosing separately that portion of bad
accounts representing taxable sales and that portion representing nontaxable
sales. Accounts charged off as bad debts must be added to gross sales if
afterwards collected.
History Note: Authority G.S. 105‑164.3; 105‑164.22;
105.262;
Eff. February 1, 1976.
17 NCAC 07B .4803 CASH BASIS
(a) When a vendor having both taxable and nontaxable sales
elects to report and pay tax on the cash basis, the vendor must keep records
which disclose a separate accounting of taxable and nontaxable sales and
receipts on sales. Such vendor must pay tax on the total sales price of all
taxable tangible personal property sold for cash during the month covered by
the return and on that portion of the sales price collected or constructively
received during such month on taxable tangible personal property sold on
credit, installment or other deferred payment sales contracts without any
arbitrary allocation for finance charges, service charges or interest charges.
Finance charges, service charges and interest charges for credit extended under
conditional sales contracts providing for deferred payment of the purchase
price are not subject to the tax if such charges are separately stated on the
invoices given to the customers at the time of sale and in the vendor's records
of sales and collections. If, on conditional, installment or other deferred
payment sales, the vendor sells or assigns the finance paper, he is deemed to
have received the full balance of the consideration for the sale of tangible
personal property and is liable for remitting tax on the total sales price of
such property at the close of the month during which the paper was assigned or
sold including any finance reserve withheld on the finance paper. If such
vendor sells his accounts receivable he is liable for payment of tax on the
outstanding taxable balance of such accounts at the time they are sold
notwithstanding that the accounts may be sold at a discount to the purchaser.
(b) When persons filing their sales tax reports on the cash
basis of accounting sell their accounts receivable, they are liable for payment
of sales tax on their taxable accounts receivable balance outstanding at the
time they sell such accounts. When a corporation is formed to succeed a
proprietorship or partnership and the accounts receivable are sold to the
corporation, the proprietorship or partnership is liable for remitting the
sales tax due on its outstanding taxable accounts receivable balance at the
time the accounts are sold.
History Note: Authority G.S. 105‑164.3; 105‑164.22;
105‑262;
Eff. February 1, 1976.
section .4900 – transportation charges
17 NCAC 07B .4901 SHIPMENTS FROM OUTSIDE NORTH CAROLINA
17 NCAC 07B .4902 SHIPMENTS FROM WITHIN NORTH CAROLINA
History Note: Authority G.S. 105‑164.12; 105‑262;
Eff. February 1, 1976.
Amended Eff. August 1, 1996; October 1, 1993; October 1,
1991;
Repealed Eff. August 1, 2002.
SECTION .5000 ‑ EYEGLASSES AND OTHER OPHTHALMIC AIDS AND
SUPPLIES: OCULISTS: OPTOMETRISTS AND OPTICIANS
17 NCAC 07B .5001 PRESCRIPTION EYEGLASSES
Sales of eyeglasses ground on prescription of physicians,
oculists or optometrists, including frames as an integral part thereof, are not
subject to the tax.
History Note: Authority G.S. 105‑164.13; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .5002 EYEGLASS FRAMES
(a) Eyeglass frames sold in connection with the repair or
replacement of eyeglasses ground on prescription of physicians, oculists, or
optometrists are not subject to the tax.
(b) Sales of eyeglass frames, cases, optical merchandise
and optical supplies by optical supply houses and opticians to registered
merchants, including oculists and optometrists, for resale are not subject to
the tax.
History Note: Authority G.S. 105‑164.5; 105‑164.13;
105‑262;
Eff. February 1, 1976.
17 NCAC 07B .5003 OPHTHALMIC INSTRUMENTS
Sales of ophthalmic instruments and supplies to physicians,
oculists, optometrists and other users are subject to the applicable statutory
state and local sales or use tax.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. May 1, 2009; October 1, 1993; October 1,
1991.
17 NCAC 07B .5004 TAXABLE OPTICAL SUPPLIES
All sales to users or consumers of eyeglass frames not for
use in connection with eyeglasses ground on prescription, sunglasses not ground
on prescription, solutions for cleaning eyeglasses, telescopes, binoculars,
opera glasses, and similar items, by whomsoever made, are subject to the applicable
statutory state and local sales or use tax. In addition, the retail sale of
nose pads, temples and any other repair parts for eyeglass frames are subject
to the tax without regard to whether the repair parts are sold to be used on
frames with prescription lens. All persons, including opticians, optometrists,
and oculists, making such sales shall register as retail merchants and collect
and remit the tax due thereon.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1991.
SECTION .5100 ‑ LEASED DEPARTMENTS AND TRANSIENT SELLERS
17 NCAC 07B .5101 LEASED DEPARTMENTS
Where a store or other business has leased certain of its
departments to other persons who make therein retail sales of tangible personal
property, the lessee of each such leased department shall register with the
North Carolina Department of Revenue and shall also, unless the Secretary has
in writing agreed otherwise, file separate sales and use tax returns monthly.
If the lessor keeps the books for the lessee and makes collections on account
of the lessee's sales, the lessor may, as agent for the lessee, file the
required separate monthly returns for each such lessee and pay to the
Department the taxes due. However, the lessee shall not be relieved of his tax
liability if the lessor fails to make the proper returns or fails to remit to
the Department all taxes due by reason of the business conducted by the lessee.
History Note: Authority G.S. 105‑164.16; 105‑262;
Eff. February 1, 1976.
17 NCAC 07B .5102 TRANSIENT SELLERS
Persons engaged in business selling tangible personal
property, whether through stores, from private residences, from trucks and
wagons, by house‑to‑house canvass, or in any other manner
whatsoever, are required to register with the Department and collect and remit
the applicable state and local sales or use tax. Producers are deemed to be
selling in their capacity as producers when making sales on foot or from trucks
or wagons.
History Note: Authority G.S. 105‑164.4; 105‑164.13;
105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; March 1, 1993; October 1,
1991.
SECTION .5200 ‑ BABY CHICKS AND POULTS
17 NCAC 07B .5201 CHICKS: EGGS: EXEMPTION
The following sales are exempt from tax:
(1) sales of baby chicks and poults to poultry farmers,
egg producers and hatcheries for commercial poultry or egg production;
(2) sales of eggs to be used in hatching baby chicks
and poults which will be sold or used for commercial poultry or egg production;
(3) all sales of eggs, baby chicks and poults for
resale, irrespective of by whom sold;
(4) sales of eggs, baby chicks and poults by egg
producers and poultry farmers when such sales are made by them in their
capacity as producers; Generally, hatcheries do not qualify as producers of
farm products within the provisions of G.S. 105‑164.13(4b). Hatchery
sales which are not exempt under Subparagraphs (1), (2) or (3) of this Rule are
subject to the applicable statutory state and local sales or use tax.
History Note: Authority G.S. 105-164.4; 105‑164.13;
105‑262; Article 39; Article 40; Article 42; Article 43;
Article 44;
Eff. February 1, 1976;
Amended Eff. June 1, 2006; October 1, 1993; October 1,
1991.
17 NCAC 07B .5202 CHICKS: EGGS: TAXABLE
All sales of eggs, baby chicks and poults which do not
qualify for exemption under one or more of the provisions above set forth in 17
NCAC 07B .5201 are subject to the applicable statutory state and local sales or
use tax.
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. June 1, 2006; October 1, 1993; October 1,
1991.
SECTION .5300 ‑ CERTIFICATE OF AUTHORITY: BOND
REQUIREMENTS
17 NCAC 07B .5301 CERTIFICATE OF AUTHORITY
The direct pay certificate authorized by G.S. 105-164.27
replaces the certificate of authority. Form E-595A is an application for a
direct pay certificate. The Secretary will issue a direct pay certificate to
all taxpayers who have a certificate of authority as of December 31, 2000. A
taxpayer with a certificate of authority as of that date does not need to apply
for a direct pay certificate.
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105-164.27; 105‑262;
Eff. February 1, 1976;
Amended Eff. April 1, 2001; October 1, 1993; February 1,
1987; January 1, 1982.
17 NCAC 07B .5302 PROPER USE OF CERTIFICATE OF AUTHORITY
History Note: Authority G.S. 105‑64.4; 105‑164.6;
105‑262;
Eff. February 1, 1976;
Repealed Eff. January 1, 1982.
SECTION .5400 ‑ FORMS USED FOR SALES AND USE TAX
PURPOSES
17 NCAC 07B .5401 MONTHLY SALES AND USE TAX REPORT FORM:
E‑500
17 NCAC 07B .5402 QUARTERLY SALES AND USE TAX REPORT
FORM: E‑500B
17 NCAC 07B .5403 SALES AND USE TAX CHART: E‑502:
THREE PERCENT
17 NCAC 07B .5404 SALES AND USE TAX CHART: E‑502A:
FOUR PERCENT
17 NCAC 07B .5405 REG. APPLICATION: SALES/USE TAX AND/OR
INC TAX WITHHOLDING FORM AS/RP1
17 NCAC 07B .5406 NOTICE OF PROPOSED TAX ASSESSMENT
FORM: DOR 20
History Note: Authority G.S. 105-164.4; 105-164.5;
105-164.6; 105‑164.15; 105‑164.16; 105‑164.29; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 1994; October 1, 1993; October 1,
1990; July 1, 1990; January 1, 1982;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5407 PROPOSED ASSESSMENT OF WHOLESALE
LICENSE FEE FORM: E‑510B
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. February 1, 1976;
Repealed Eff. October 1, 1990.
17 NCAC 07B .5408 APPLICATION FOR RENEWAL OF WHOLESALE
LICENSE FORM: E‑514
17 NCAC 07B .5409 NOTICE OF DELINQUENT TAX REPORT FORM:
E‑515
17 NCAC 07B .5410 EXTENSION OF TIME FOR FILING SALES AND
USE TAX REPORT FORM: E‑517
17 NCAC 07B .5411 CERTIFICATE OF OVERPAYMENT FOR 90 DAYS
FORM: E‑525
17 NCAC 07B .5412 CERTIFICATE OF OVERPAYMENT FORM: E‑525B
History Note: Authority G.S. 105‑164.5; 105‑164.15;
105‑164.19; 105‑164.29; 105‑262;
Eff. February 1, 1976;
Amended Eff. July 1, 1994; October 1, 1993; October 1,
1990; January 1, 1982;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5413 NOTICE OF PENALTY ASSESSMENT FORM: E‑529
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. February 1, 1976;
Repealed Eff. October 1, 1990.
17 NCAC 07B .5414 RECEIPT FOR SALES TAX PAID FORM: E‑532
17 NCAC 07B .5415 MERCHANTS CERTIFICATE OF REGISTRATION
FORM: E‑533
17 NCAC 07B .5416 SCHEDULE OF COUNTY SALES AND USE TAXES
FORM: E‑536
17 NCAC 07B .5417 CERTIFICATE OF AUTHORITY FORM: E‑537
17 NCAC 07B .5418 BOND FORM: E‑537A
17 NCAC 07B .5419 NUMERICAL AND ALPHABETICAL LIST OF
COUNTIES IN N.C. FORM: E‑540
17 NCAC 07B .5420 ANALYSIS OF TAX BY LEASED DEPARTMENT
FORM: E‑541
17 NCAC 07B .5421 ANALYSIS OF STATE SALES AND USE TAX BY
CITY FORM: E‑543
17 NCAC 07B .5422 SALES REPORT FOR FAIR CONCESSIONS
FORM: E‑557
17 NCAC 07B .5423 LIST OF POST OFFICES IN TAXING
COUNTIES FORM: E‑562
17 NCAC 07B .5424 NOTICE OF AMENDED ASSESSMENT FORM: E‑567A
History Note: Authority G.S. 105-164.4; 105-164.6; 105‑164.15;
105‑164.6; 105‑164.16; 105‑164.29; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; November 1, 1982;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5425 NONRESIDENT MERCHANTS REGISTRATION
APPLICATION FORM: E‑572
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. February 1, 1976;
Repealed Eff. August 1, 1988.
17 NCAC 07B .5426 NONRESIDENT MERCHANTS REGISTRATION
CERTIFICATE FORM: E‑573
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. February 1, 1976;
Repealed Eff. August 1, 1988.
17 NCAC 07B .5427 NONRESIDENT MERCHANTS CERTIFICATE OF
RESALE FORM: E‑574
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. February 1, 1976;
Repealed Eff. August 1, 1988.
17 NCAC 07B .5428 MANUFACTURERS CERTIFICATE FORM: E‑575
17 NCAC 07B .5429 INTERSTATE CARRIER CLAIM FOR REFUND
FORM: E‑581
17 NCAC 07B .5430 CLAIM FOR REFUND OF TAXES FORM:
CHURCHES: ETC.: E‑585
17 NCAC 07B .5431 CLAIM FOR REFUND OF TAXES FORM:
GENERAL REFUND: E‑588
17 NCAC 07B .5432 AFFIDAVIT FORM: E‑589
17 NCAC 07B .5433 CERTIFICATE OF RESALE FORM: E‑590
History Note: Authority G.S. 105‑164.14; 105‑164.15;
105‑164.28; 105‑262;
Eff. February 1, 1976;
Amended Eff. October 1, 1993; March 1, 1993; October 1,
1991; August 1, 1988;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5434 COMMERCIAL FISHERMAN'S CERTIFICATE
FORM: E‑558
History Note: Authority G.S. 105‑164.13; 105‑164.15;
105‑262; 105‑264; 113‑154; 113‑155;
Eff. September 30, 1977;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5435 CONTRACTOR'S AND SUBCONTRACTOR'S
CERTIFICATE FORM: E‑580.
History Note: Authority G.S. 105‑164.13; 105‑164.15;
105‑262; 105‑264; 113‑154; 113‑155;
Eff. September 30, 1977;
Amended Eff. October 1, 1993; March 15, 1980;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5436 FARMER'S CERTIFICATE FORM: E‑599
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.15; 105‑262; 105‑264;
Eff. September 30, 1977;
Repealed Eff. April 1, 1995.
17 NCAC 07B .5437 VETERINARIAN'S CERTIFICATE FORM: E‑567
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.13; 105‑164.15; 105‑262; 105‑264;
Eff. March 15, 1980;
Repealed Eff. April 1, 1995.
17 NCAC 07B .5438 LOGGING AND PULPWOOD CERTIFICATE FORM:
E‑526
History Note: Authority G.S. 105‑164.4; 105‑164.6;
105‑164.15; 105‑262; 105‑264;
Eff. March 15, 1980;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5439 MOTOR VEHICLE EXEMPTION FORM: E‑599B
History Note: Authority G.S. 105‑164.13; 105‑164.15;
105‑262; 105‑264;
Eff. March 15, 1980;
Amended Eff. July 1, 1990;
Repealed Eff. October 1, 1993.
17 NCAC 07B .5440 PURCHASER'S AFFIDAVIT OF EXPORT FORM:
E‑599C
History Note: Authority G.S. 105‑164.13; 105‑164.15;
105‑262; 105‑264;
Eff. March 15, 1980;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5441 AFFIDAVIT FOR USE TAX FORM: E‑589A
(MECKLENBURG COUNTY)
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. January 1, 1982;
Repealed Eff. October 1, 1990.
17 NCAC 07B .5442 REQUEST FOR SALES/USE TAX CREDIT BY
VENDEE FORM: E‑599M
History Note: Authority G.S. 105‑164.15; 105‑262;
105‑264;
Eff. November 1, 1982;
Amended Eff. October 1, 1993;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5443 SALES AND USE TAX CHART: E‑502C:
SIX PERCENT
History Note: Authority G.S. 105‑164.15; 105‑262;
Eff. January 3, 1984;
Amended Eff. October 1, 1991; August 1, 1988;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5444 SEMIMONTHLY SALES AND USE TAX REPORT
FORM: E‑500D
History Note: Authority G.S. 105‑164.4; 105‑164.16(b);
105‑262;
Eff. February 1, 1986;
Amended Eff. October 1, 1993; October 1, 1990;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5445 COMMERCIAL LIVESTOCK/POULTRY FARMERS'
CERT. FORM: E‑599S
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. February 1, 1987;
Amended Eff. October 1, 1993;
Repealed Eff. May 1, 1995.
17 NCAC 07B .5446 CERTIFICATE OF EXEMPTION FORM: E‑599T
History Note: Authority G.S. 105‑164.4; 105‑262;
Eff. March 1, 1987;
Repealed Eff. October 1, 1993.
17 NCAC 07B .5447 MOTOR VEHICLE LEASE AND RENTAL REPORT
FORM: E‑500F
17 NCAC 07B .5448 SCRAP TIRE DISPOSAL TAX REPORT FORM: E‑500G
History Note: Authority G.S. 105‑164.15; 105‑187.5;
105‑262; 130A‑309.54;
Eff. July 1, 1990;
Amended Eff. October 1, 1993; October 1, 1991;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5449 MONTHLY SALES AND USE TAX REPORT FORM:
E‑500C
17 NCAC 07B .5450 NOTICE FOR TAXPAYERS FILING THIRTEEN
REPORTS A YEAR FORM: E‑517A
17 NCAC 07B .5451 NOTICE FOR TAXPAYERS FILING TWENTY‑SIX
REPORTS/YEAR FORM: E‑517B
17 NCAC 07B .5452 EXTENSION OF TIME FOR FILING SALES AND
USE TAX REPORT FORM: E‑517C
17 NCAC 07B .5453 SPECIAL SALES AND USE TAX REMITTANCE
FORM: E‑503
17 NCAC 07B .5454 NOTICE OF TAX DUE FORM: DOR 31
17 NCAC 07B .5455 NOTICE OF TAX DUE FORM: DOR 31A
17 NCAC 07B .5456 NOTICE TO NEWLY REGISTERED WHOLESALE
MERCHANTS FORM: E‑552
17 NCAC 07B .5457 NOTICE TO ALL TAXPAYERS FORM: E‑505AC
17 NCAC 07B .5458 UTILITIES AND MUNICIPALITIES SALES TAX
REPORT FORM: E‑500E
History Note: Authority G.S. 105‑164.4(a)(4a);
105‑164.4(a)(4c); 105‑164.15; 105‑164.16; 105‑164.19;
105‑262;
Eff. October 1, 1990;
Amended Eff. October 1, 1993; June 1, 1992;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5459 CLAIM FOR REFUND OF COUNTY SALES AND
USE TAXES FORM: E‑585E
History Note: Authority G.S. 105‑164.14; 105‑164.15;
105‑262; 105‑264;
Eff. October 1, 1991;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5460 USE TAX REPORT FORM: E‑554
History Note: Authority G.S. 105‑164.3; 105‑164.6;
105‑164.8; 105‑262;
Eff. June 1, 1992;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5461 CLAIM FOR REFUND OF STATE AND COUNTY
SALES/USE TAXES FORM: E‑585C
History Note: Authority G.S. 105‑164.14; 105‑164.15;
105‑262;
Eff. October 1, 1993;
Repealed Eff. April 1, 1999.
17 NCAC 07B .5462 RESERVED FOR FUTURE CODIFICATION
17 NCAC 07B .5463 CLAIM FOR REFUND OF WHITE GOODS
DISPOSAL TAX FORM: E‑585W
History Note: Authority G.S. 105‑164.14; 105‑164.15;
105‑187.23; 105‑262;
Eff. July 1, 1994;
Repealed Eff. April 1, 1999.
