§ 105-164.4B. Sourcing principles. - North Carolina Statutes

§ 105‑164.4B.  Sourcingprinciples.

(a)        General Principles.– The following principles apply in determining where to source the sale of aproduct. These principles apply regardless of the nature of the product.

(1)        Over‑the‑counter.– When a purchaser receives a product at a business location of the seller, thesale is sourced to that business location.

(2)        Delivery tospecified address. – When a purchaser receives a product at a locationspecified by the purchaser and the location is not a business location of theseller, the sale is sourced to the location where the purchaser receives theproduct.

(3)        Delivery addressunknown. – When a seller of a product does not know the address where a productis received, the sale is sourced to the first address or location listed inthis subdivision that is known to the seller:

a.         The business or homeaddress of the purchaser.

b.         The billing addressof the purchaser or, if the product is prepaid wireless calling service, thelocation associated with the mobile telephone number.

c.         The address fromwhich tangible personal property was shipped or from which a service wasprovided.

(b)        Periodic RentalPayments. – When a lease or rental agreement requires recurring periodicpayments, the payments are sourced as follows:

(1)        For leased or rentedproperty, the first payment is sourced in accordance with the principles setout in subsection (a) of this section and each subsequent payment is sourced tothe primary location of the leased or rented property for the period covered bythe payment. This subdivision applies to all property except a motor vehicle,an aircraft, transportation equipment, and a utility company railway car.

(2)        For leased or rentedproperty that is a motor vehicle or an aircraft but is not transportation equipment,all payments are sourced to the primary location of the leased or rentedproperty for the period covered by the payment.

(3)        For leased or rentedproperty that is transportation equipment, all payments are sourced inaccordance with the principles set out in subsection (a) of this section.

(4)        For a railway carthat is leased or rented by a utility company and would be transportationequipment if it were used in interstate commerce, all payments are sourced inaccordance with the principles set out in subsection (a) of this section.

(c)        TransportationEquipment Defined. – As used in the section, the term "transportationequipment" means any of the following used to carry persons or property ininterstate commerce: a locomotive, a railway car, a commercial motor vehicle asdefined in G.S. 20‑4.01, or an aircraft. The term includes a containerdesigned for use on the equipment and a component part of the equipment.

(d)        Exceptions. – Thissection does not apply to the following:

(1)        Telecommunications services.– Telecommunications services are sourced in accordance with G.S. 105‑164.4C.

(2)        Direct mail. – Directmail that meets one of the following descriptions is sourced to the locationwhere the property is delivered, and direct mail that does not meet one ofthese descriptions is sourced to the location from which the direct mail wasshipped:

a.         Direct mailpurchased pursuant to a direct pay permit.

b.         When the purchaserprovides the seller with information to show the jurisdictions to which thedirect mail is to be delivered.

(3)        Florist wire sale. –A florist wire sale is sourced to the business location of the florist thattakes an order for the sale. A "florist wire sale" is a sale in whicha retail florist takes a customer's order and transmits the order to anotherretail florist to be filled and delivered.  (2001‑347, s. 2.9; 2002‑16, s. 5; 2003‑284,s. 45.3; 2004‑170, s. 20; 2006‑33, s. 3; 2006‑66, s.24.13(a); 2008‑187, s. 42; 2009‑445, s. 12.)