17 NCAC 07B .3911          GIFT WRAPPING

(a)  When a vendor gift wraps an item which he sells, the paper, ribbon, and bow become a part of the sale of the item notwithstanding that the wrapping of the item may take place at the point of delivery thereof to the vendee or at one of the vendor's wrapping stations or that the vendor may make a charge for gift wrapping the item.  If a separate charge is made for wrapping, it is deemed to be for services performed in wrapping the item rather than a separate sale of wrapping material, and no sales or use tax will be due on the wrapping charge.

(b)  In a case where an organization, as a means of raising funds, offers to wrap gift items which were purchased from others, the organization is considered to be performing a wrapping service; and its purchases of paper, ribbon, and bows for use in the performance of the service are taxable.  Under these circumstances, no tax is due on the service charges.


History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑164.13; 105‑262; 105‑264;

Eff. January 3, 1984;

Amended Eff. November 1, 1994; October 1, 1993.