17 NCAC 07B .3803          REDEMPTION OF TRADING STAMPS

(a)  Trading stamp companies which redeem trading stamps are deemed to be engaged in the business of selling tangible personal property at retail for a consideration.  The companies must register with the Department and collect and remit the applicable statutory state and local sales or use tax due on all the sales.  The tax shall be computed on the redemption value of the stamps, stamp book, or other media which the trading stamp company accepts for the premium.

(b)  A trading stamp company or other vendor which sells goods and trading stamps to a retailer who will himself redeem the stamps shall secure a Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form E-595E, from the retailer since, in such instances, the trading stamp company or other vendor is deemed to be selling tangible personal property for the purpose of resale.  The retailer is liable for the applicable statutory state and local sales tax on the redemption value of the stamps, stamp book or other media which he accepts for any premium.

(c)  If a trading stamp company or other merchant has questions relative to any transaction or operation involving the use of trading stamps, premiums or gifts, the trading stamp company or other merchant may submit all pertinent facts relating thereto to the Department for a ruling as to its tax status.

 

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

Eff. February 1, 1976;

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