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.