§ 105-467. Scope of sales tax. - North Carolina Statutes

§ 105‑467.  Scope ofsales tax.

(a)        Sales Tax. – Thesales tax that may be imposed under this Article is limited to a tax at therate of one percent (1%) of the transactions listed in this subsection. Thesales tax authorized by this Article does not apply to sales that are taxableby the State under G.S. 105‑164.4 but are not specifically included inthis subsection.

(1)        The sales price oftangible personal property subject to the general rate of sales tax imposed bythe State under G.S. 105‑164.4(a)(1) and (a)(4b).

(2)        The gross receiptsderived from the lease or rental of tangible personal property when the leaseor rental of the property is subject to the general rate of sales tax imposedby the State under G.S. 105‑164.4(a)(2).

(3)        The gross receiptsderived from the rental of any room or other accommodations subject to thegeneral rate of sales tax imposed by the State under G.S. 105‑164.4(a)(3).

(4)        The gross receiptsderived from services rendered by laundries, dry cleaners, and other businessessubject to the general rate of sales tax imposed by the State under G.S. 105‑164.4(a)(4).

(5)        The sales price offood that is not otherwise exempt from tax pursuant to G.S. 105‑164.13but is exempt from the State sales and use tax pursuant to G.S. 105‑164.13B.

(5a)      The sales price of abundled transaction that includes food subject to tax under subdivision (5) ofthis subsection, if the price of the food exceeds ten percent (10%) of theprice of the bundle. A retailer must determine the price of food in a bundledtransaction in accordance with G.S. 105‑164.4D.

(5b)      The sales price ofbread, rolls, and buns that are sold at a bakery thrift store and are exemptfrom State tax under G.S.105‑164.13(27a).

(6)        The sales price ofprepaid telephone calling service taxed as tangible personal property underG.S. 105‑164.4(a)(4d).

(7)        The gross receiptsderived from providing satellite digital audio radio service subject to thegeneral rate of tax under G.S. 105‑164.4(a)(6a).

(b)        Exemptions andRefunds. – The State exemptions and exclusions contained in G.S. 105‑164.13,the State sales and use tax holidays contained in G.S. 105‑164.13C andG.S. 105‑164.13D, and the State refund provisions contained in G.S. 105‑164.14apply to the local sales and use tax authorized to be levied and imposed underthis Article. Except as provided in this subsection, a taxing county may notallow an exemption, exclusion, or refund that is not allowed under the Statesales and use tax. A local school administrative unit and a joint agencycreated by interlocal agreement among local school administrative unitspursuant to G.S. 160A‑462 to jointly purchase food service‑relatedmaterials, supplies, and equipment on their behalf is allowed an annual refundof sales and use taxes paid by it under this Article on direct purchases oftangible personal property and services, other than electricity,telecommunications service, and ancillary service. Sales and use tax liabilityindirectly incurred by the entity on building materials, supplies, fixtures,and equipment that become a part of or annexed to any building or structurethat is owned or leased by the entity and is being erected, altered, orrepaired for use by the entity is considered a sales or use tax liabilityincurred on direct purchases by the entity for the purpose of this subsection.A request for a refund shall be in writing and shall include any informationand documentation required by the Secretary. A request for a refund is duewithin six months after the end of the entity's fiscal year. Refunds appliedfor more than three years after the due date are barred.

(c)        Sourcing. – Thelocal sales tax authorized to be imposed and levied under this Article appliesto taxable transactions by retailers whose place of business is located withinthe taxing county. The sourcing principles in G.S. 105‑164.4B apply indetermining whether the local sales tax applies to a transaction.  (1971, c. 77, s. 2; 1983(Reg. Sess., 1984), c. 1097, s. 9; 1987, c. 557, s. 7; c. 832, s. 4; 1989, c.692, s. 3.7; 1991, c. 689, s. 316; 1996, 2nd Ex. Sess., c. 13, s. 1.3; 1998‑98,s. 30.1; 1998‑171, s. 9; 2001‑347, s. 2.15; 2001‑414, s. 29;2001‑424, s. 34.16(b); 2001‑430, s. 13; 2001‑487, s. 67(e);2002‑16, s. 12; 2002‑159, s. 61; 2005‑276, s. 33.23; 2006‑66,s. 7.20(a); 2006‑162, s. 32; 2007‑244, s. 6; 2007‑368, s. 2;2008‑107, s. 28.12(c).)