17 NCAC 07B .4210          CHEROKEE INDIAN RESERVATION

Sales of tangible personal property by merchants on the Cherokee Indian Reservation are exempt from sales and use taxes when such merchants are authorized to do business on the Reservation and are paying the tribal gross receipts levy to the Tribal Council.  The above exemption from the tax is applicable to all sales by merchants on the Reservation without regard to the status of the purchaser.

Sales of tangible personal property by in‑state vendors or out‑of‑state vendors to the Eastern Band of Cherokee Indians or to individual Indians of the band are exempt from sales and use taxes when delivery of the property occurs on the Reservation.  Sales of tangible personal property by in‑state or out‑of‑state vendors to the Eastern Band of Cherokee Indians, to individual Indians of the band, to contractors or anyone else representing Indians are subject to sales or use taxes when delivery thereof occurs outside the Reservation even though such property may be incorporated into improvements on the Reservation.

Contractors are users or consumers of all tangible personal property which they purchase within or without this State for use in the performance of contracts.  Contractors are liable for remitting the applicable sales or use tax on all tangible personal property purchased within or without this State when delivery occurs off the Reservation even though the contractors may use it or incorporate it in improvements on the Reservation.  Property purchased by and delivered to a contractor on a Reservation to be incorporated in an improvement to real property is not subject to sales or use tax.  Property purchased by and delivered to contractors on a reservation for use in performing a contract (but where the property is not incorporated in an improvement) is subject to sales or use tax unless sold by merchants on the Cherokee Indian Reservation who are authorized to do business there and who pay the tribal levy on the transaction which property is, therefore, exempt under G.S. 105‑164.13(25).

 

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

Eff. February 1, 1976;

Amended Eff. January 1, 1982.