section .1600 – sales to or by hospitals: educational: charitable or religious institutions: etc.: and refunds thereto
17 NCAC 07B .1601 SALES TO OR BY NONPROFIT ENTITIES
(a) Sales To Nonprofits -- Sales of taxable tangible personal property to a nonprofit entity for use or consumption by that entity are subject to sales or use tax. Nonprofit entities include hospitals not operated for profit, educational institutions not operated for profit, churches, and civic groups such as chambers of commerce, fraternities, sororities, and scout clubs. Sales of building materials, supplies, fixtures, and equipment to contractors for use in the performance of contracts with a nonprofit entity are also subject to sales or use tax. A nonprofit entity must pay sales tax charged on its purchases and is liable for use tax on its purchases when no sales tax is collected. A nonprofit entity that owes use tax must file a return in accordance with 17 NCAC 7B .0104.
(b) Sales By Nonprofits. - Sales by nonprofit entities are subject to sales or use tax unless a specific exemption applies to the sale. A nonprofit entity that makes taxable retail sales must register with the Department and file sales and use tax returns. A nonprofit entity that is registered with the Department may execute a Streamlined Sales Tax Agreement Certificate of Exemption, form E-595E. The certificate shall not be used for items the nonprofit entity intends to use or consume.
History Note: Authority G.S. 105‑164.4; 105‑164.6; 105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; July 1, 2000; October 1, 1993; October 1, 1991; January 1, 1982; July 5, 1980.