§ 143-59.1. Contracts with certain foreign vendors. - North Carolina Statutes

§ 143‑59.1.  Contracts with certain foreignvendors.

(a)        Ineligible Vendors. – The Secretary of Administration andother entities to which this Article applies shall not contract for goods orservices with either of the following:

(1)        A vendor if the vendor or an affiliate of the vendor meetsone or more of the conditions of G.S. 105‑164.8(b) but refuses to collectthe use tax levied under Article 5 of Chapter 105 of the General Statutes onits sales delivered to North Carolina. The Secretary of Revenue shall providethe Secretary of Administration periodically with a list of vendors to whichthis section applies.

(2)        A vendor if the vendor or an affiliate of the vendorincorporates or reincorporates in a tax haven country after December 31, 2001,but the United States is the principal market for the public trading of thestock of the corporation incorporated in the tax haven country.

(b)        Vendor Certification. – The Secretary of Administrationshall require each vendor submitting a bid or contract to certify that thevendor is not an ineligible vendor as set forth in subsection (a) of thissection. Any person who submits a certification required by this subsectionknown to be false shall be guilty of a Class I felony.

(c)        Definitions. – The following definitions apply in thissection:

(1)        Affiliate. – As defined in G.S. 105‑163.010.

(2)        Tax haven country. – Means each of the following: Barbados,Bermuda, British Virgin Islands, Cayman Islands, Commonwealth of the Bahamas,Gibraltar, Isle of Man, the Principality of Monaco, and the Republic of theSeychelles. (1999‑341, s. 7;2002‑189, s. 6; 2003‑413, s. 28.)