17 NCAC 07B .2702          SALES TO DENTAL LABORATORIES

(a)  Sales to dental laboratories of tangible personal property which becomes a component part of false teeth, dentures or artificial restoration of teeth being fabricated by such laboratories are not subject to sales or use tax.

(b)  Sales to dental laboratories of machinery and equipment, and accessories thereto for use directly in the fabricating of false teeth are subject to the one percent rate of sales or use tax with a maximum tax of eighty dollars ($80.00) per article.  Sales to contractors and subcontractors purchasing such machinery and equipment or parts and accessories thereto for use by them in the performance of contracts with dental laboratories and sales to subcontractors of such machinery and equipment or parts and accessories thereto for use by them in the performance of contracts encompassed in such contracts with dental laboratories are taxable at the one percent rate of sales or use tax, subject to a maximum tax of eighty dollars ($80.00) per article where applicable when the machinery and equipment or parts and accessories thereto are used by such dental laboratories directly in the fabricating of false teeth.  Contractors and subcontractors may obtain Contractor's and Subcontractor's Certificate, Form E‑580, from the Office Services Division, Taxpayer Assistance Section, North Carolina Department of Revenue, to be executed by them and furnished to their vendors in connection with such purchases as the vendor's authority to apply the one percent rate of tax thereto.

(c)  Sales to dental laboratories of tangible personal property which does not become a component part of false teeth, or which is not used directly in the fabricating of the false teeth are subject to the four percent state and any applicable local sales or use tax.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑164.13; 105‑262; 105‑264;

Eff. February 1, 1976;

Amended Eff. October 1, 1993; June 1, 1992; October 1, 1991; January 1, 1982.