Chapter 17 NCAC 07B

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; Octob…

17 NCAC 07B .0104 REGISTRATION AND RETURNS (a) Certificate of Registration: (1) Before a person engages in business as a retailer, wholesale merchant, or facilitator liable for sales or use tax, the person shall obtain a Certificate of Registration from the Department. A Certific…

17 NCAC 07B .0105 MEASURE OF TAX DUE 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; Expired Eff. June 1, 2019 pursuant to G.S. 150B-21.3A.

17 NCAC 07B .0106 CERTIFICATES OF EXEMPTION: SALES FOR RESALE (a) For a person to purchase an item, as the term item is defined in G.S. 105-164.3, for resale exempt from sales and use tax pursuant to G.S. 105-164.13(5), the person shall provide each seller the information require…

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 February 1, 1976; Repealed Eff.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 and Bargaining Discounts. -- A trade discount is a reduction in the price a seller charges that is extended to a particular purchaser or group of purchasers without reservation at the time the sale is being negotiated…

17 NCAC 07B .0109 APPLICATION OF TAX TO FISH BAIT 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; Expired Eff. June 1, 20…

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 February 1, 1976; Repealed Eff.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. 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; Expired Eff. June 1, 2…

17 NCAC 07B .0112 OCCASIONAL and ISOLATED SALES (a) An occasional and isolated sale occurs when the seller sells an item, as the term item is defined in G.S. 105-164.3, that is not of, or similar to, the type of item that the seller is engaged in the business of selling. For exam…

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. …

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 For purposes of G.S. 105-164.13, purchases of scientific or research equipment, or an attachment or repair part for scientific or research equipment, for use in performing research services are purchased for use, not resale. History Note: Autho…

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 A business entity having divisions, both inside and outside of North Carolina, is liable for remitting the rates of sales and use tax on any purchases of items, as the term item is defined in G.S. 105-164.3, for use in North …

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 busi…

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 …

17 NCAC 07B .0121 BANKRUPT'S LIABILITY 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; Repealed Eff. January 1, 2024.

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 …

17 NCAC 07B .0123 COMMERCIAL FISHERMEN – CERTIFICATE OF EXEMPTION 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; E…

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 .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 .0800 – adjustments: replacements: alterations and installation sales 17 NCAC 07B .0801 MANUFACTURER'S WARRANTY AND DEALER'S WARRANTY; ADJUSTMENTS AND REPLACEMENTS (a) Manufacturer's Warranty: (1) Exempt Purchases. -- Purchases by a manufacturer of a replacement item, a r…

17 NCAC 07B .0804 FABRICATED ARTICLES History Note: Authority G.S. 105-164.4; 105-164.6; 105-262; Eff. February 1, 1976; Expired Eff. June 1, 2019 pursuant to G.S. 150B-21.3A.

section .0900 – advertising and advertising agencies: public relations firms 17 NCAC 07B .0901 ADVERTISING AND ADVERTISING AGENCIES (a) Professional Services to Produce Advertising. -- Advertising agencies are engaged in the business of rendering professional services when they p…

17 NCAC 07B .0902 ADVERTISING ARTISTS (a) Sales by Advertising Artists. -- Advertising artists are retailers when they produce, cause to be produced, fabricate, purchase, or otherwise acquire items, as the term item is defined in G.S. 105-164.3, that they sell at retail for any u…

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) Rendering Professional Services. -- For purposes of G.S. 105-164.4, charges by a public relations firm to plan and conduct a public relations program that requires it to conduct research, opinion polls and surveys, compile data, perfor…

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 supplie…

SECTION .1100 - QUALIFYING AND CONDITIONAL FARMERS 17 NCAC 07B .1101 FARM MACHINERY: EQUIPMENT: SERVICES (a) Sales of items, as the term item is defined in G.S. 105-164.3, to farmers or other persons are exempt from tax when all of the following requirements are met: (1) the farm…

17 NCAC 07B .1102 EXPERIMENTAL FARMS History Note: Authority G.S. 105-164.4; 105-164.6; 105-262; Eff. February 1, 1976; Expired Eff. June 1, 2019 pursuant to G.S. 150B-21.3A.

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 .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 .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 ta…

17 NCAC 07B .1123 CERTAIN SALES TO COMMERCIAL ANIMAL FARMERS 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; Rep…

section .1200 – HOTELS: MOTELS: TOURIST CAMPS AND TOURIST CABINS 17 NCAC 07B .1201 TAxability of gross receipts 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, …

17 NCAC 07B .1202 SUPPLIES AND EQUIPMENT FOR AN ACCOMMODATION For purposes of G.S. 105-164.13, a hotel, motel, inn, tourist camp, tourist cabin, or other accommodation provider making purchases of supplies, equipment, or fixtures including linens, bedding, bathroom supplies, clea…

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 (a) To qualify for the exemption from sales or use tax on out-of-State deliveries set out in G.S. 105-164.13(33a), a retailer who delivers items, as the term item is defined in G.S. 105-164.3, …

17 NCAC 07B .1302 IN-STATE DELIVERIES Pursuant to G.S. 105-164.4, the sales price of items, as the term item is defined in G.S. 105-164.3, sold at retail that are delivered to a purchaser or the purchaser's agent in this State are subject to sales and use tax. Tax is due even if …

17 NCAC 07B .1303 GIFTS TO DONEES (a) A donee is a person that receives an item, as the term item is defined in G.S. 105-164.3, from a purchaser without charge. Pursuant to G.S. 105-164.4, retailers making sales of items sourced to this State shall collect and remit the sales and…

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 pr…

17 NCAC 07B .1305 FOREIGN COMMERCE: PURCHASES FOR EXPORT (a) Tangible personal property purchased for export and exempt from sales or use tax pursuant to G.S. 105-164.13(33) will lose its exemption if: (1) the purchaser of the tangible personal property fails to submit Form E-599…

section .1400 – sales of medicines: drugs and medical supplies 17 NCAC 07B .1401 prescription drugs 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; Repealed Eff. April 1, 2016.