Chapter 17 NCAC 07B

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 July 5, 1980; Repealed Eff.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 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;…

17 NCAC 07B .3702 SALES OF LUBRICANTS 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; Expired …

17 NCAC 07B .3703 car wash businesses 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 May 1, 2009; October 1, 1993; October 1, 1991; Repealed Eff. Se…

SECTION .3800 - PROMOTIONAL ITEMS: GIFTS 17 NCAC 07B .3801 PROMOTIONAL ITEMS AND GIFTS (a) Purchases by a person of items, as the term item is defined in G.S. 105-164.3, for use by the person as promotional items or gifts are not purchases for resale and are subject to sales or u…

17 NCAC 07B .3804 GIFT CERTIFICATES AND GIFT CARDS Charges for gift certificates or gift cards are not subject to sales and use tax, pursuant to G.S. 105-164.4, at the time of initial sale for the gift certificate or gift card. When the holder of a gift certificate or gift card r…

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…

17 NCAC 07B .3907 dEPOSITS FOR REUSABLE CONTAINERS (a) Pursuant to G.S. 105-164.13(47), deposits charged by a retailer or wholesale merchant for a beverage container that is returnable to the retailer or wholesale merchant for reuse when the amount charged is refundable or credit…

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 February 1, 1976; Repealed Eff.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 wholesa…

17 NCAC 07B .3910 RETURNABLE CONTAINERS Pursuant to G.S. 105-164.13(23), when a person sells tangible personal property in returnable containers without charging for the use of the containers for a specified time but, at the expiration of the specified time, the containers enter …

17 NCAC 07B .3911 Gift Wrapping 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; Repealed Eff. September 1, 2018.

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 .4005 DEFOLIANTS: INHIBITORS: ETC. History Note: Authority G.S. 105-164.13; 105-262; Eff. February 1, 1976; Repealed Eff. October 1, 1993.

SECTION .4100 - ARTISTS: ART DEALERS: PHOTOGRAPHERS: ETC. 17 NCAC 07B .4101 OBJECTS OF ART 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; Oc…

17 NCAC 07B .4102 SALES OF PHOTOGRAPHS AND VIDEOS (a) Photographs. -- The sales price of photographs, whether the photographs are transferred electronically or as tangible personal property, are subject to the sales and use tax, pursuant to G.S. 105-164.4. The sales price of phot…

17 NCAC 07B .4103 Photo Tinting 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; Repealed Eff. September 1, 2018.

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. …

17 NCAC 07B .4105 PHOTO SUPPLIES AND MATERIALS (a) Sales of items, as the term item is defined in G.S. 105-164.3, such as frames, films, storage media, and other articles by photographers, photo finishers, videographers, or others are retail sales subject to sales and use tax, pu…

17 NCAC 07B .4106 PHOTOENGRAVINGS: ELECTROTYPES: ETC. (a) Pursuant to G.S. 105-164.13(5), purchases by commercial printers and publishers of an item, as the term item is defined in G.S. 105-164.3, including photoengravings, electrotypes and lithographs used in the "production" ph…

17 NCAC 07B .4109 BLUEPRINTS SOLD TO ARCHITECTS For purposes of G.S. 105-164.13, sales of blueprints, photographs and other items, as the term item is defined in G.S. 105-164.3, to an architectural or engineering firm are sales for use or consumption and not for resale, and are s…

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. Hi…

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 qualifying agency or instrumentality thereof, are not subject to the sales and use tax, pursuant to G.S. 105-164.…

17 NCAC 07B .4202 EXEMPT SALES TO THE UNITED STATES GOVERNMENT (a) Retailer Records. -- A retailer that makes sales directly to the United States Government, or a qualifying agency or instrumentality thereof, shall retain copies of any Certificates of Exemption, Form E-595E, purc…

17 NCAC 07B .4203 CONTRACTORS FOR THE FEDERAL GOVERNMENT Sales of items, as the term item is defined in G.S. 105-164.3, to a contractor are exempt from sale and use tax pursuant to G.S. 105-164.13(17), when a contract between the United States Government, or its agencies and inst…

17 NCAC 07B .4204 GOVERNMENT AGRICULTURAL OFFICES History Note: Authority G.S. 105-164.13; 105-262; Eff. February 1, 1976; Repealed Eff. January 1, 2024.

17 NCAC 07B .4205 FEDERAL CREDIT UNIONS AND THE FARM CREDIT SYSTEM (a) Federal Credit Unions. -- Sales to, or purchases by, 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, pursuant to G.…

17 NCAC 07B .4206 FED SAVINGS/LOAN ASSOC, NATL AND STATE BANKS, CREDIT UNIONS For purposes of G.S. 105-164.13(17), sales which a state would be without power to tax under the Constitution or laws of the United States or under the Constitution of this State do not include the foll…

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.…

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 exem…

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 fu…

17 NCAC 07B .4210 NATIVE AMERICAN INDIAN COUNTRY (a) Sales by Merchants on the Eastern Band of Cherokee Indian (EBCI) Reservation: (1) Pursuant to G.S. 105-164.13(25), sales of items, as the term item is defined in G.S. 105-164.3, by merchants on the EBCI Reservation are exempt f…

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). Taxes listed in 17 NCAC 07B .1602(f) are not eligible for refund …

17 NCAC 07B .4302 REFUNDS TO RAILROAD COMPANIES (a) In General. -- Railroad companies, when applying for refunds pursuant to G.S. 105-164.14(a), shall comply with application frequency and form requirements set out in 17 NCAC 07B .4301. (b) Railcars Not Owned by Refund Applicant …

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…

SECTION .4400 - LEASE OR RENTAL 17 NCAC 07B .4401 LEASE RECEIPTS (a) Rate of Tax. – Pursuant to G.S. 105-164.4, the gross receipts derived from the lease or rental of tangible personal property are subject to the sales or use tax at the same rates, including any maximum tax, that…

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; …

17 NCAC 07B .4403 MAINTENANCE OF LEASED PROPERTY (a) Purchases of tangible personal property used to repair or maintain tangible personal property held for lease or rent are wholesales sales pursuant to G.S. 105-164.3(281) provided that the purchased property becomes part of the …

17 NCAC 07B .4404 EQUIPMENT FURNISHED WITH OPERATOR (a) A transaction that provides equipment or other tangible personal property with an operator for a fixed or indeterminate period of time, is not a lease or rental, as defined in G.S. 105-164.3(121), but is rendering a service …

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 tha…

17 NCAC 07B .4406 INSURANCE ON LEASED PROPERTY (a) Insurance Obtained by Lessor. -- The gross receipts derived from the lease or rental of tangible personal property for storage, use, or consumption within this State are subject to sales and use tax, pursuant to G.S. 105-164.4. T…

17 NCAC 07B .4407 leases for out of state use History Note: Authority G.S. 105-164.4; 105-262; Eff. February 1, 1976; Amended Eff. October 1, 1993; July 5, 1980; Repealed Eff. April 1, 2016.

17 NCAC 07B .4408 LEASES: OUT OF STATE NEGOTIATIONS 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; Expired Eff. June 1, 2019 pursuant to G.S. 150B-21.3A.

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 …

17 NCAC 07B .4411 EXTENSION OF LEASES SUBJECT TO A MAXIMUM TAX When a maximum tax, pursuant to G.S. 105-164.4 105-164.6, or 105-164.27A would apply to the sale of tangible personal property and the tangible person property is leased for a definite stipulated period of time, the l…

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…