SECTION .1700 ‑ SALES TO OR BY THE STATE: COUNTIES: CITIES: AND OTHER POLITICAL SUBDIVISIONS

 

17 NCAC 07B .1701          GOVERNMENTAL SALES AND PURCHASES

(a)  General. -- With the exception of electricity and telecommunication and ancillary service, sales to State agencies are exempt from State and local sales or use taxes pursuant to G.S. 105-164.13(52), and from the privilege tax pursuant to Article 5F of Chapter 105 of the General Statutes.  The items must be purchased by the State agency for its own use pursuant to a valid purchase order issued by the agency that contains its exemption number and a description of the property purchased, or the items must be paid for with a State-issued check, electronic deposit, credit card, procurement card, or credit account of the agency.  For all purchases other than by an agency-issued purchase order, the agency must provide to or have on file with the retailer the agency's exemption number.  The exemption does not apply to sales of tangible personal property to contractors for use in the performance of contracts with State agencies or to sales of tangible personal property to employees of State agencies.  Sales to counties, cities, and other political subdivisions are subject to the applicable State and local tax.

(b)  A governmental unit that sells tangible personal property at retail is considered to be a retailer.  The reporting, payment, and other requirements that apply to a nongovernmental entity apply to a governmental entity unless a law exempts the governmental entity from the requirement.

(c)  DOT. -- Sales to the Department of Transportation are exempt from State and local sales and use tax.  This exemption does not apply to sales of tangible personal property to contractors for use in the performance of contracts with the Department of Transportation nor to sales of tangible personal property to employees of the Department of Transportation.

 

History Note:        Authority G.S. 105-164.3; 105‑164.4; 105‑164.6; 105-164.13; 105-187.52; 105‑262; Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;

Eff. February 1, 1976;

Amended Eff. October 1, 2009; August 1, 1998; August 1, 1996; October 1, 1993; October 1, 1991; May 1, 1990; February 1, 1987.