(a)  One %, eighty dollars ($80.00) Maximum Rate on Purchases -- The preferential one percent, maximum eighty dollars ($80.00) per article rate in G.S. 105-164.4A(3) applies to cellular telephone companies.  Sales to these companies of the following items are subject to this preferential rate:

(1)           Antennas;

(2)           Antenna cable used in transmitting the radio signals from the microwave antenna to the microwave transmitter or receiver;

(3)           Central office telecommunications equipment;

(4)           Microwave transmitters and receivers;

(5)           Prewritten computer programs used in providing telecommunications services to subscribers;

(6)           Radio channel units;

(7)           Switchboard or private branch exchange equipment; and

(8)           Towers to support antennas used to transmit and receive signals of microwave radios used in providing telephonic quality communications.  For the purpose of applying the maximum tax, a tower is considered to be a single article only when the complete tower is sold by the same vendor.

(b)  Rates on Services and Sales -- Cellular services are subject to tax under G.S. 105-164.4C as mobile telecommunications services.  Sales or leases of radio telephone equipment to subscribers are subject to the general State tax and any applicable local sales or use taxes.


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

Eff. June 1, 1992;

Amended Eff. August 1, 2002; July 1, 2000; October 1, 1993.