section .4300 – refunds to interstate carriers
17 NCAC 07B .4301 REFUNDS TO INTERSTATE CARRIERS
(a) Scope -- This Rule explains the sales and use tax refund allowed to interstate carriers under G.S. 105-164.14(a) The refund authorized by that statute does not apply to taxes listed in 17 NCAC 07B .1602(d).
(b) Eligible Items – Sales and use taxes paid on railway cars and locomotives are eligible for refund. In addition, the following items are considered to be fuel, a lubricant, a repair part, or an accessory. Therefore, sales and use taxes paid on purchases of the following items are eligible for refund under G.S. 105-164.14(a):
(3) bedding for motor vehicle sleeping compartments;
(4) charts for tachographs;
(5) decals for motor vehicles;
(6) emergency flares and reflectors;
(7) fire extinguishers;
(8) freon or nitrogen used in refrigerating and cooling motor vehicles;
(9) furniture pads;
(10) lifeboats and oxygen masks;
(11) load jacks and chains;
(12) mobile CB radios;
(13) motor vehicle seat cushions;
(14) paints for decals;
(15) polyethylene liners (used to waterproof trailers);
(16) pouches for registration cards and permits;
(18) ramp equipment (aircraft steps used to embark or disembark aircraft);
(19) ropes and chains to tie down cargo (adapted for use on motor vehicles; otherwise not allowed);
(20) signs (metal signs attached to trucks);
(22) tire chains;
(23) tire and tubes;
(24) welding rods for repair of motor vehicles;
(25) windshield solvents; or
(26) zipped covers for grills.
(c) Items not Eligible -- The following items are not considered to be fuel, a lubricant, a repair part, or an accessory. Therefore, sales and use taxes paid on purchases of the following items are not eligible for refund under G.S. 105-164.14(a):
(1) drivers' gloves;
(2) drivers' uniforms;
(3) food trays (airplanes);
(4) fork lift tires and parts;
(5) gauges for testing equipment;
(6) hand trucks;
(7) license and inspection fees;
(9) pillows (airplanes);
(10) repair labor;
(11) road service charges;
(12) security seals;
(13) sixty percent on recapped tires where forty percent of the combined price is taxed (17 NCAC 07B .1901);
(14) tire volume discounts;
(15) tools, shop supplies;
(16) trip logs; or
(17) wax and washing supplies.
(d) Other Items -- The lists in this Rule do not include every item that is or is not subject to refund. Upon request, the Sales and Use Tax Division shall determine if an item not included in either list is subject to refund.
(e) Amount of Refund -- G.S. 105-164.14(a) sets out the formula for computing the amount of a refund. Under the formula, an interstate carrier receives a refund for a percentage of the tax paid on eligible items.
History Note: Authority G.S. 105‑164.14; 105‑262;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; July 1, 2000; August 1, 1998; August 1, 1996; October 1, 1993; July 1, 1990; February 1, 1987; March 1, 1984.