17 NCAC 07B .0801          ADJUSTMENTS AND REPLACEMENTS

(a)  Whenever any taxable article is returned to the manufacturer for adjustment, replacement, or exchange under a guaranty as to its quality or service and pursuant thereto a new article is given free, or at a reduced price, the sales or use tax shall be computed on the actual amount, if any, paid to the manufacturer for the new article.

(b)  Dealers using tangible personal property to fulfill sales warranties or guaranty obligations to a customer without cost to the customer are not liable for the applicable statutory state and local sales or use tax on the dealer's cost price of all tangible personal property so used. 

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑262;

Article 39; Article 40; Article 42; Article 43; Article 44;

Eff. February 1, 1976;

Amended Eff. April 1, 2006; October 1, 1993; October 1, 1991.