Tax Law Changes - North Carolina Department Of Revenue - 2012 Page 25
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41G.S. 105-164.12C – Items Given Away by Merchants: This is a new section that
restores language relating to the application of use tax to items given away by
merchants, which was inadvertently deleted in a 2009 budget provision. “If a retailer
engaged in the business of selling prepared food and drink for immediate or on-
premises consumption also gives prepared food or drink to its patrons or employees
free of charge, for the purpose of this Article, the property given away is considered sold
along with the property sold. If a retailer gives an item of inventory to a customer free of
charge on the condition that the customer purchase similar or related property, the item
given away is considered sold along with the item sold. In all other cases, property
given away or used by any retailer or wholesale merchant is not considered sold,
whether or not the retailer or wholesale merchant recovers its cost of the property from
sales of other property."
The above language was originally added to the definition of “sale or selling” in 1996 as
a result of a court case. In 2009, the language dealing with items given away by
merchants was removed from a definition with the intent that it would be located
elsewhere in the sales and use statutes as a technical change.
(Enacted June 26, 2012 with application of language effective August 7, 2009; SB 826,
s. 2.10(a), S.L. 12-79.)
G.S. 105-164.13 – Exemptions and Exclusions: The 2012 General Assembly
enacted clarifying changes to exemptions. The changes and their effective dates are as
follows:
Any of the following fuel… – (11). This exemption is amended to clarify that to the
extent a motor fuel is taxed under Article 36C (Gasoline, Diesel, and Blends), it is
exempt from sales and use tax.
(Effective June 26, 2012; SB 826, s. 1.4, S.L. 12-79.)
Installation charges when the charges are separately stated… – (49). This
exemption is amended to add the phrase “similar billing document” to parallel the
language in G.S. 105-164.13(49a). Installation charges are exempt from sales and use
taxes when the charges are separately stated on an invoice or similar billing document
given to the purchaser at the time of the sale.
(Effective June 26, 2012; SB 826, s. 1.4, S.L. 12-79.)
Delivery charges for delivery of direct mail… – (49a). This exemption is amended to
add the phrase “at the time of the sale” to parallel the language in G.S. 105-164.13(49).
Delivery charges for delivery of direct mail are exempt from sales and use taxes if the
charges are separately stated on an invoice or similar billing document given to the
purchaser at the time of the sale.
(Effective June 26, 2012; SB 826, s. 1.4, S.L. 12-79.)
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