§ 105-164.16. Returns and payment of taxes. - North Carolina Statutes

§ 105‑164.16.  Returnsand payment of taxes.

(a)        General. – Salesand use taxes are payable when a return is due. A return is due quarterly ormonthly as specified in this section. A return must be filed with the Secretaryon a form prescribed by the Secretary and in the manner required by theSecretary. A return must be signed by the taxpayer or the taxpayer's agent.

A sales tax return must statethe taxpayer's gross sales for the reporting period, the amount and type ofsales made in the period that are exempt from tax under G.S. 105‑164.13or are elsewhere excluded from tax, the amount of tax due, and any otherinformation required by the Secretary. A use tax return must state the purchaseprice of tangible personal property, digital property, or services that werepurchased or received during the reporting period and are subject to tax underG.S. 105‑164.6, the amount of tax due, and any other information requiredby the Secretary. Returns that do not contain the required information will notbe accepted. When an unacceptable return is submitted, the Secretary willrequire a corrected return to be filed.

(b)        Quarterly. – Ataxpayer who is consistently liable for less than one hundred dollars ($100.00)a month in State and local sales and use taxes must file a return and pay thetaxes due on a quarterly basis. A quarterly return covers a calendar quarterand is due by the last day of the month following the end of the quarter.

(b1)      Monthly. – Ataxpayer who is consistently liable for at least one hundred dollars ($100.00)but less than ten thousand dollars ($10,000) a month in State and local salesand use taxes must file a return and pay the taxes due on a monthly basis. Amonthly return is due by the 20th day of the month following the calendar monthcovered by the return.

(b2)      Prepayment. – Ataxpayer who is consistently liable for at least ten thousand dollars ($10,000)a month in State and local sales and use taxes must make a monthly prepaymentof the next month's tax liability. The prepayment is due on the date a monthlyreturn is due. The prepayment must equal at least sixty‑five percent(65%) of any of the following:

(1)        The amount of taxdue for the current month.

(2)        The amount of taxdue for the same month in the preceding year.

(3)        The average monthlyamount of tax due in the preceding calendar year.

(b3)      Category. – TheSecretary must monitor the amount of State and local sales and use taxes paidby a taxpayer or estimate the amount of taxes to be paid by a new taxpayer andmust direct each taxpayer to pay tax and file returns as required by thissection. In determining the amount of taxes due from a taxpayer, the Secretarymust consider the total amount due from all places of business owned oroperated by the same person as the amount due from that person. A taxpayer mustfile a return and pay tax in accordance with the Secretary's direction.

(c)        Repealed by SessionLaws 2001‑427, s. 6(a), effective January 1, 2002, and applicable totaxes levied on or after that date.

(d)        Use Tax on Out‑of‑StatePurchases. – Use tax payable by an individual who purchases tangible personalproperty other than a boat or an aircraft, digital property, or a serviceoutside the State for a nonbusiness purpose is due on an annual basis. For anindividual who is not required to file an individual income tax return underPart 2 of Article 4 of this Chapter, the annual reporting period ends on thelast day of the calendar year and a use tax return is due by the followingApril 15. For an individual who is required to file an individual income taxreturn, the annual reporting period ends on the last day of the individual'sincome tax year, and the use tax must be paid on the income tax return asprovided in G.S. 105‑269.14.

(e)        Simultaneous Stateand Local Changes. – When State and local sales and use tax rates change on thesame date because one increases and the other decreases but the combined ratedoes not change, sales and use taxes payable on the following periodic paymentsare reportable in accordance with the changed State and local rates:

(1)        Lease or rentalpayments billed after the effective date of the changes.

(2)        Installment salepayments received after the effective date of the changes by a taxpayer whoreports the installment sale on a cash basis.  (1957, c. 1340, s. 5; 1967, c. 1110, s. 6; 1973, c.476, s. 193; 1979, c. 801, s. 83; 1983 (Reg. Sess., 1984), c. 1097, s. 14;1985, c. 656, s. 26; 1985 (Reg. Sess., 1986), c. 1007; 1987, c. 557, s. 6; 1989(Reg. Sess., 1990), c. 945, s. 1; 1991, c. 690, s. 4; 1993, c. 450, s. 7; 1997‑77,s. 1; 1998‑121, s. 1; 1999‑341, s. 1; 2000‑120, s. 11; 2001‑347,s. 2.14; 2001‑414, s. 18; 2001‑427, s. 6(a); 2001‑430, s. 7;2002‑184, ss. 10, 11;  2003‑284, ss. 44.1, 45.8; 2003‑416, s.26; 2005‑276, s. 33.24; 2006‑162, s. 5(b); 2006‑33, s. 9;2007‑527, ss. 11, 12; 2008‑134, s. 11; 2009‑451, s. 27A.3(b),(c), (m).)