Instructions For Form E-500 Sales And Use Tax Return (Page 5 of 6) in pdf

10/15/2002

Line 11 - 2.5% County Rate: See Nos. 7 through 10 under Instructions - General. The 2002

General Assembly enacted legislation authorizing counties to levy an additional .5% local

sales and use tax beginning December 1, 2002. The Department will advise you under

separate cover about those counties that enact the new tax rate and when you should

begin collecting and reporting the 2.5% county rate.

Items subject to the 4.5% general State rate (Line 5) or 4% State rate (Line 6) are also

subject to the 2.5% local sales and use tax rate in counties that have enacted the new rate

and to the .5% Mecklenburg County Public Transportation sales and use tax rate if the

item is sold or delivered in Mecklenburg County. The Mecklenburg County Public

Transportation sales and use tax is reported on Line 12.

Enter under the column “Purchases for Use” the total purchase price of any taxable

tangible personal property, which was purchased for storage, use, or consumption in a

taxing county from vendors outside North Carolina not required to collect the 2.5% county

tax. This amount should include those items in the column “Purchases for Use” on Lines 5

and 6 if for use in a county that has enacted the new rate of tax.

Enter under the column “Receipts” the total taxable receipts, rentals, and sales, which are

subject to the 2.5% rate of county tax excluding the tax collected. This amount should

include those items in the column “Receipts” on Lines 5 and 6. Calculate the tax by adding

the “Purchases for Use” and “Receipts” and multiplying the sum by 2.5%.

Line 12 - .5% Mecklenburg Transit Rate: See Nos. 7 through 10 under Instructions - General.

Items subject to the 4.5% general State rate (Line 5) or 4% State rate (Line 6) are also

subject to the .5% Mecklenburg County Public Transportation sales and use tax rate if the

item is sold or delivered in Mecklenburg County.

Enter under the column “Purchases for Use” the total purchase price of any taxable

tangible personal property which was purchased for storage, use, or consumption in

Mecklenburg County from vendors outside North Carolina or outside the Mecklenburg

county in which the .5% Mecklenburg County Public Transportation sales and use tax was

not required to be collected by the vendors. This amount should include those items in the

column “Purchases for Use” on Lines 5 and 6 that apply to Mecklenburg County.

Enter under the column “Receipts” the total taxable receipts, rentals, and sales, which are

subject to the .5% rate of Mecklenburg County Public Transportation sales and use tax

excluding the tax collected. Calculate the tax by adding the “Purchases for Use” and

“Receipts” and multiplying the sum by .5%.

Line 13 - Total State Tax: Calculate the total State tax by adding the “Tax” on Lines 5 through 9.

Line 14 - Total County Tax: Calculate the total County tax by adding the “Tax” on Lines 10 through

12.

Line 15 - Excess Collections: Enter any tax collected in excess of the total amount of tax

computed to be due on taxable receipts, rentals, and sales.

Line 16 – Total Tax: Calculate the total tax by adding the “Tax” on Lines 13 through 15.

Sales and Use Tax Division

Instructions For Form E-500 Sales And Use Tax Return Page 5