17 NCAC 07B .3804          GIFT CERTIFICATES

Charges by vendors for gift certificates which can be exchanged for merchandise are not subject to sales tax.  When the holder of such gift certificates exchanges the certificate for merchandise, the transaction is subject to the applicable statutory state and local sales or use tax.  The basis for the tax is the sales price of the property.


History Note:        Authority G.S. 105‑164.3; 105‑164.4; 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.