17 NCAC 07B .4201          IN GENERAL

(a)  Sales made directly to the United States Government, or any agency thereof, are not subject to the sales or use tax.  In order to be a sale to the United States Government, the government or agency involved must make the purchase of the property, obtain title to the property before or at the time it is delivered, and pay directly to the vendor the purchase price of such property or use a government bankcard to pay the vendor the purchase price of such property.

(b)  Nontaxable federal agencies include the United States Postal Service, Departments of Defense, Army, Navy and Air Force, United States hospitals, federal reserve banks, federal land banks, federal housing projects, federal housing authorities, or any other department or departments of the federal government whose activities are directly under federal control and whose purchases are paid for from the federal treasury.

(c)  Sales made to Army, Navy and Air Force Activities Funds, post exchanges, officers' mess funds, noncommissioned officers funds and other voluntary unincorporated organizations of Army, Navy, Marine Corps, Air Force, or Coast Guard personnel authorized by regulations issued by the Departments of Defense, Army, Navy or Air Force are likewise exempt from sales and use tax.


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

Eff. February 1, 1976;

Amended Eff. August 1, 1988.