17 NCAC 07B .3004          SECONDHAND PROPERTY

(a)  Tax Status -- The original stock in trade of a retailer is not limited to newly manufactured articles.  Therefore, the fact that property is used or secondhand does not exempt it from sales or use tax.  Retail sales of secondhand property acquired by any means other than repossession are subject to sales or use tax.

(b)  Purchases -- When a vendor acquires property in any of the following circumstances, the property is considered to have been purchased and is therefore subject to tax:

(1)           the vendor reacquires property that is collateral for a nonrecourse endorsement given by the vendor to a financial institution; or

(2)           the vendor accepts secondhand or other property in lieu of commissions.


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

Eff. February 1, 1976;

Amended Eff. July 1, 2000; October 1, 1993; October 1, 1991; January 3, 1984.