17 NCAC 07B .3802          SALES OF TRADING STAMPS

Sales of trading stamps to a registered merchant, whether a trading stamp company or other retailer, are deemed to be sales for the purpose of resale and such sales are not subject to the tax.  When the retailer distributes the stamps to his customers in connection with retail sales of other property, the stamps are considered to be included in the price of the items purchased by such customers.  Sales to a trading stamp company of catalogues, stamp books, advertising matter or other tangible personal property furnished free to retail merchants or used by the trading stamp company to promote its stamp program are subject to the applicable statutory state and local sales or use tax.  Sales of such items to other retail merchants are also subject to said tax.


History Note:        Authority G.S. 105‑164.4; 105‑164.5; 105‑262; Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;

Eff. February 1, 1976;

Amended Eff. May 1, 2009; October 1, 1993; October 1, 1991.