17 NCAC 07B .1123          CERTAIN SALES TO COMMERCIAL ANIMAL FARMERS

For the purpose of this Rule, the word "animal" means swine, cattle, horses, mules, sheep, chickens, turkeys, fish, and other similar domestic animals held or produced for commercial purposes.  The word "commercial" means held or produced for income or profit and does not include the production of animals for one's personal use or consumption and not for sale.  Commercial animal farmers, contractors performing contracts with commercial animal farmers, and subcontractors performing contracts with general contractors who contract with commercial animal farmers may obtain a Streamlined Sales Tax Agreement Certificate of Exemption, Form E-595E, from the North Carolina Department of Revenue, to be executed by them and furnished to their vendors to establish the vendors' authority to exempt purchases by them from sales and use taxes.  If a Form E-595E is properly executed, a vendor is relieved of liability for any additional tax found to be due with reference to a sale for which the vendor did not charge sales tax in reliance on the fully completed certificate.  By executing a fully completed certificate, the purchaser assumes liability for any sales tax subsequently determined to be due.  The vendor is not protected in this manner without the certificate.  Vendors that do not choose to use the Form E-595E must maintain other written evidence adequate to support the conclusion that a sale is exempt from tax in accordance with the provisions of G.S. 105‑164.13(4c).

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105-164.13; 105‑262;

Eff. February 1, 1976;

Amended Eff. June 1, 2006; August 1, 1998; August 1, 1996; May 1, 1995; October 1, 1993;

June 1, 1992; February 1, 1988.