Chapter 17 NCAC 07B

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 October 1, 1993; October 1, 1991; August 1, 1988; Repealed Eff.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 October 1, 1991; August 1, 1988; Repealed Eff.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, INSTRUMENTS, AND EQUIPMENT Pursuant to G.S. 105-164.4, sales to physicians, dentists, hospitals, or other consumers of medical supplies, medical instruments, medical equipment, and laboratory equipment used to diagnose, prevent, treat, or cure …

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 August 1, 1988; Repealed Eff.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 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; Expired Eff. June 1, 2019 pursuant to G.S. 150B-21.3A.

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 pri…

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 February 1, 1976; Repealed Eff.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 History Note: Authority G.S. 105-164.4; 105-164.6; 105-164.13; 105-262; Article 39; Article 40; Article 42; A…

17 NCAC 07B .1602 REFUNDS TO NONPROFIT ENTITIES (a) Eligibility. -- A nonprofit entity listed in G.S. 105-164.14(b) may file Form E-585, Nonprofit and Governmental Entity Claim for Refund State, County and Transit Sales and Use Taxes, to obtain a refund of sales and use tax paid …

17 NCAC 07B .1605 CLUBS: ASSOCIATIONS: ETC. History Note: Authority G.S. 105-164.4; 105-262; Eff. February 1, 1976; Amended Eff. January 1, 1982; July 5, 1980; RRC objection January 31, 2024 and rule returned to agency on February 1, 2024.

SECTION .1700 - SALES TO OR BY THE STATE: COUNTIES: CITIES: AND OTHER POLITICAL SUBDIVISIONS 17 NCAC 07B .1701 GOVERNMENTAL SALES AND PURCHASES (a) Sales to and Purchases by Governmental Entities. -- With the exception of electricity, telecommunications service, and ancillary ser…

17 NCAC 07B .1702 REFUNDS TO COUNTIES, CITIES, AND OTHER GOVERNMENTAL ENTITIES (a) Eligibility. -- A governmental entity listed in G.S. 105-164.14(c) may file Form E-585, Nonprofit and Governmental Entity Claim for Refund for State, County and Transit Sales and Use Taxes, to obta…

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 eligible for annual refunds of sales and use tax paid on certain direct purchases. A governmental entity not listed in that subsection is not eligible for an annual…

17 NCAC 07B .1705 HOUSING AUTHORITIES Sales of items, as the term item is defined in G.S. 105-164.3, 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 statutory rates of …

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.

section .1800 – hospitals and similar institutions 17 NCAC 07B .1801 SALES TO AND PURCHASES BY HOSPITALS AND SIMILAR INSTITUTIONS (a) General. -- Hospitals and similar institutions are primarily engaged in rendering services and are the consumers of all items, as the term item is…

17 NCAC 07B .1802 REFUNDS TO HOSPITALS AND SIMILAR MEDICAL FACILITIES 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, …

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.

section .1900 - TIRE RECAPPERS AND RETREADERS: TIRE AND TUBE REPAIRS 17 NCAC 07B .1901 TIRE RECAPPING MATERIALS History Note: Authority G.S. 105-164.4; 105-164.6; 105-262; Eff. February 1, 1976; Repealed Eff. March 1, 2016.

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 consume…

17 NCAC 07B .1905 TIRE RETREADERS (a) Sales by Tire Retreaders: (1) Sales of Retreaded Tires. – Pursuant to G.S. 105-164.4, the sales price of a retreaded tire is subject to sales and use tax on the sales price of the retreaded tire, without any deduction for any trade-in credit …

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 scrap tire disposal tax established in G.S. 105-187.16 applies to the sale or purchase of new tires including new tires for motor vehicles, aircraft, construction equipment, maintenance and industrial equipment, and implements of …

SECTION .2000 - SALES AND GIFTS BY EMPLOYERS TO EMPLOYEES 17 NCAC 07B .2001 SALES TO EMPLOYEES (a) Pursuant to G.S. 105-164.4, an employer engaged in business in this State shall collect and remit the sales and use tax due on the retail sale of an item, as the term item is define…

17 NCAC 07B .2002 GIFTS AND WAGES TO AN EMPLOYEE OR OTHER PERSON Pursuant to G.S. 105-164.4, an employer shall pay the sales or use tax due on the purchase of an item, as the term item is defined in G.S. 105-164.3, that is provided to an employee or other person as a gift or as c…

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, PIPED NATURAL GAS, AND OTHER FUEL (a) Gross Receipts. -- For purposes of this Rule, "gross…

17 NCAC 07B .2102 SAWDUST USED AS FUEL History Note: Authority G.S. 105-164.13; 105-262; Eff. February 1, 1976; Amended Eff. August 1, 2009; Repealed Eff. January 1, 2024.

17 NCAC 07B .2105 AVIATION FUEL The gross receipts derived from the retail sale of aviation gasoline and jet fuel are subject to the combined general rate of sales and use tax, pursuant to G.S. 105-164.4(a)(15). For purposes of this Rule, gross receipts include any federal excise…

section .2200 - FOOD AND FOOD PRODUCTS FOR HUMAN CONSUMPTION 17 NCAC 07B .2201 FOOD AND FOOD PRODUCTS (a) Retail sales and purchases of food and food products not included in Paragraph (b) of this Rule are subject to the two percent local food rate of sales and use tax, imposed b…

17 NCAC 07B .2202 DISPOSABLE LUNCHROOM SUPPLIES 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; Expired Eff. June…

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. 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; RRC objection January 31, 20…

17 NCAC 07B .2205 CATERING (a) Catering is the retail sale of food, prepared food, beverages, and other tangible personal property or services at a location designated by the customer or another person. A person engaged in the catering business, including a personal chef that pro…

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 …

17 NCAC 07B .2208 Fraterity and Sorority Meals 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; Repealed Eff. April 1, 2016.

17 NCAC 07B .2209 SCHOOL STORES' SALES History Note: Authority G.S. 105-164.4; 105-164.6; 105-262; Eff. February 1, 1976; Amended Eff. October 1, 1993; Repealed Eff. January 1, 2024.

17 NCAC 07B .2210 SUMMER CAMPS AND SIMILAR CAMPS (a) For purposes of this Rule, a summer camp is a program primarily providing children and adolescents recreational, athletic, or educational facilities and programming for a limited period of time during the summer vacation period…

17 NCAC 07B .2211 Cover Charge History Note: Authority G.S. 105-164.4; 105-164.6; 105-262; Eff. February 1, 1976; Amended Eff. October 1, 1993; Repealed Eff. April 1, 2016.

17 NCAC 07B .2212 SALES OF FISH AND OTHER SEAFOODS (a) A person making retail sales of fish or other seafood shall collect and remit sales and use tax on the sales price of the fish or other seafood unless exempt under Paragraph (b) of this Rule. The rates of sales and use tax on…

17 NCAC 07B .2213 SERVICE CHARGES IMPOSED ON FOOD, BEVERAGES, OR PREPARED FOOD (a) Service Charges Up To 20 Percent. -- A service charge imposed by a retailer for the service of food, beverages, or prepared food, is considered a tip and not subject to sales and use tax pursuant t…

SECTION .2300 - SALES TO OUT-OF-STATE MERCHANTS FOR RESALE 17 NCAC 07B .2301 IN GENERAL 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; Repealed Eff. January 1, 2024.

17 NCAC 07B .2302 INTERSTATE SALE History Note: Authority G.S. 105-164.13; 105-262; Eff. February 1, 1976; Amended Eff. April 1, 2006; February 1, 1988; Expired Eff. June 1, 2019 pursuant to G.S. 150B-21.3A.

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.

section .2400 - veterinarians 17 NCAC 07B .2401 SALES OF MEDICAL SUPPLIES AND EQUIPMENT TO VETERINARIANS (a) Veterinarians are the consumer of items, as the term item is defined in G.S. 105-164.3, that they use in rendering professional services. Retail sales to veterinarians of …

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 …

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 No…

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…

17 NCAC 07B .2503 SECONDHAND FURNITURE Except as provided in 17 NCAC 07B .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 warehou…