§ 105-164.6. Complementary use tax. - North Carolina Statutes

§ 105‑164.6. Complementary use tax.

(a)        Tax. – An excisetax at the applicable rate set in G.S. 105‑164.4 is imposed on theproducts listed below. The applicable rate is the rate and maximum tax, if any,that would apply to the sale of the product. A product is subject to tax underthis section only if it is subject to tax under G.S. 105‑164.4.

(1)        Tangible personalproperty or digital property purchased inside or outside this State forstorage, use, or consumption in this State. This subdivision includes propertythat becomes part of a building or another structure.

(2)        Tangible personalproperty or digital property leased or rented inside or outside this State forstorage, use, or consumption in this State.

(3)        Services sourced tothis State.

(b)        Liability. – Thetax imposed by this section is payable by the person who purchases, leases, orrents tangible personal property or digital property or who purchases aservice. If the property purchased becomes a part of a building or otherstructure in the State and the purchaser is a contractor or subcontractor, thecontractor, the subcontractor, and the owner of the building are jointly andseverally liable for the tax. The liability of a contractor, a subcontractor,or an owner who did not purchase the property is satisfied by receipt of anaffidavit from the purchaser certifying that the tax has been paid.

(c)        Credit. – A creditis allowed against the tax imposed by this section for the following:

(1)        The amount of salesor use tax paid on the item to this State. Payment of sales or use tax to thisState on an item by a retailer extinguishes the liability of a purchaser forthe tax imposed under this section.

(2)        The amount of salesor use tax paid on the item to another state. If the amount of tax paid to theother state is less than the amount of tax imposed by this section, thedifference is payable to this State. The credit allowed by this subdivisiondoes not apply to tax paid to a state that does not grant a similar credit forsales or use taxes paid in North Carolina.

(d),(e)  Repealed by SessionLaws 2005‑276, s. 33.8, effective October 1, 2005.

(f)         Registration. – Beforea person may engage in business in this State selling or delivering tangiblepersonal property, digital property, or a service for storage, use, orconsumption in this State, the person must obtain a certificate of registrationfrom the Department. To obtain a certificate of registration, a person mustregister with the Department.

The holder of the certificateof registration must pay the tax levied under this Article. A certificate ofregistration is valid unless it is revoked for failure to comply with theprovisions of this Article or becomes void. A certificate issued to a retailerbecomes void if, for a period of 18 months, the retailer files no returns orfiles returns showing no sales.

(g)        Repealed by SessionLaws 1995, c. 7, s. 1.  (1957, c. 1340, s. 5; 1959, c. 1259, s. 5; 1961, c. 826, s. 2; 1967,c. 1110, s. 6; 1973, c. 476, s. 193; 1979, c. 17, s. 2; c. 48, ss. 3, 4; c.179, s. 3; c. 527, s. 2; 1979, 2nd Sess., c. 1100, s. 1; c. 1175; 1981, cc. 18,65; 1983, c. 713, s. 90; 1983 (Reg. Sess., 1984), c. 1065, s. 3; 1989, c. 692,s. 3.4; 1991, c. 689, s. 312; c. 690, s. 3; 1995, c. 7, s. 1; c. 17, s. 7; 1998‑121,s. 4; 1999‑438, s. 1.1; 2001‑414, s. 15; 2003‑416, ss. 17,24(a); 2005‑276, s. 33.8; 2006‑162, s. 6; 2009‑451, s.27A.3(h).)