Fillable Form E-554 - Consumer Use Tax Return (Page 2 of 2) in pdf

Page 2

Form E-554 Consumer Use Tax Return

E-554

General Information and Instructions for Completing

Web

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North Carolina use tax is due by individuals and businesses on tangible personal property and certain digital property purchased, leased or rented

inside or outside this State for storage, use, or consumption in North Carolina. Use tax is due on taxable services sourced to North Carolina.

Individuals and businesses must pay use tax to the Department when retailers do not collect tax on taxable transactions.

If you make taxable purchases on which you owe use tax during a year, you must include the use tax on your North Carolina

Individual Income Tax Return. If you are not required to file a North Carolina Individual Income Tax Return, you must file this

form and pay the amount due by April 15 of the following year. Forms filed after the due date are subject to penalty and interest.

Out-of-state retailers that are not “engaged in business” in this State are not required to collect North Carolina tax on remote sales. However,

some out-of-state retailers voluntarily collect North Carolina tax as a convenience to their customers. Out-of-state retailers include mail-

order companies, television shopping networks, firms selling over the internet, and other retailers who receive any orders in another state

and deliver the property or causes it to be delivered to a person in this State.

Items subject to sales and use tax include but are not limited to the following:

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Computers and other electronic equipment,

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Prewritten software including electronic downloads of software,

•

Books, books on tape, and digital books delivered or accessed electronically,

•

Audio compact discs, tapes, and records,

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Digital music delivered or accessed electronically,

•

Magazines and newspapers including those delivered or accessed electronically,

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Clothing, appliances, furniture, home furnishings, sporting goods, and jewelry,

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Ringtones,

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Movies delivered or accessed electronically,

•

Sales or recharges of prepaid telephone calling cards and phones.

In the blocks provided, indicate the period covered by the return, your name, Social Security Number (SSN), address, county location,

and telephone number. Use capital letters when entering your name and address.

Line 1

- Enter amount of purchases subject to the 4.75% general State tax rate and compute the general State tax due by multiplying

by .0475.

Line 2

- Enter amount of purchases subject to the 2% food tax rate and compute the food tax due by multiplying by .02.

Line 3

- Enter amount of purchases subject to the 2.0% county tax rate and compute the county tax due by multiplying by .02. 2.0%

county rate for purchases is effective January 1, 2012 through March 31, 2012 in all counties (except Alexander, Cabarrus,

Catawba, Cumberland, Duplin, Halifax, Haywood, Hertford, Lee, Martin, New Hanover, Onslow, Pitt, Randolph, Robeson,

Rowan, Sampson, Surry, and Wilkes). 2.0% county rate for purchases is effective April 1, 2012 in all counties (except Alexander,

Buncombe, Cabarrus, Catawba, Cumberland, Duplin, Durham, Halifax, Haywood, Hertford, Lee, Martin, Montgomery, New

Hanover, Onslow, Orange, Pitt, Randolph, Robeson, Rowan, Sampson, Surry, and Wilkes).

Line 4

- Enter amount of purchases subject to the 2.25% county tax rate and compute the county tax due by multiplying by .0225. 2.25%

county rate for purchases is effective January 1, 2012 through March 31, 2012 in only these counties: Alexander, Cabarrus,

Catawba, Cumberland, Duplin, Halifax, Haywood, Hertford, Lee, Martin, New Hanover, Onslow, Pitt, Randolph, Robeson, Rowan,

Sampson, Surry, and Wilkes. 2.25% county rate for purchases is effective April 1, 2012 in only these counties: Alexander,

Buncombe, Cabarrus, Catawba, Cumberland, Duplin, Durham, Halifax, Haywood, Hertford, Lee, Martin, Montgomery, New

Hanover, Onslow, Orange, Pitt, Randolph, Robeson, Rowan, Sampson, Surry, and Wilkes.

Line 5

- Enter amount of purchases subject to the 0.5% Transit sales and use tax rate and compute the transit tax due by multiplying

by .005. 0.5% Transit rate for purchases is effective in Mecklenburg County only.

Line 6

- Enter amount of State, County, and Transit tax due by adding Lines 1 through 5.

Line 7

- Enter amount of tax paid to other states on the purchases reflected in Lines 1 through 5 above. If you paid a sales tax on

products in the other state, you are entitled to a tax credit for the state tax paid against your State use tax liability in North

Carolina and any local tax paid against your local use tax liability.

Line 8

- Subtract Line 7 from Line 6 and enter the result.

Line 9

- If the return is filed after the due date, compute penalty of 5% per month of the State tax shown on Line 1 and 5% per month of

the county tax shown on Lines 2, 3, 4, and 5 for each month the return is late. The maximum penalty for late filing is 25% of the

State tax due and 25% of the county and transit tax due, but in no case is the penalty less than $5.00 for the State and $5.00

for the combined County and Transit. If the tax is not paid when due, an additional penalty of 10% of the tax will be added for

failure to pay, but in no case will the penalty be less than $5.00 for the State and $5.00 for the County and Transit.

Line 10 - If the return is filed after the due date, compute the applicable interest. Contact the Department of Revenue for the current

interest rate.

Line 11 - Add Lines 8, 9, and 10 and enter the sum.

Use blue or black ink to complete your return. Please do not staple, tape, or paper clip your payment to the return. Make check payable

in U.S. currency to N.C. Department of Revenue. Mail this return with your payment to the address on the return.

Additional information may be obtained from the Department’s website at or from the Taxpayer Assistance and Collection

Center at telephone number 1-877-252-3052 (toll-free).

Form E-554 - Consumer Use Tax Return Page 2

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