Form E-589f - Affidavit To Exempt Contractors From The Additional 0.50%transit Sales And Use Tax

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E-589F
North Carolina Department of Revenue
4-13
Post Office Box 25000
Raleigh, North Carolina 27640-0001
Affidavit to Exempt Contractors
From the Additional 0.50%Transit Sales and Use Tax
To be used in connection with sales or purchases of building materials for use in the performance of lump
sum or unit price contracts in Durham and Orange Counties entered into or awarded prior to April 1, 2013, or
entered into or awarded pursuant to any bids made prior to April 1, 2013. This affidavit is to be executed by
the contractors to their suppliers of building materials and is valid only for the additional 0.50% Transit sales
and/or use tax for public transportation imposed by Durham or Orange Counties.
This is to certify that
, a contractor, entered into a lump
sum or unit price contract with
on
or pursuant
to a firm bid made on
whereby said contractor agreed to furnish the materials and labor
for
the
erection,
alteration
or
repair
of
a
building
or
structure
at
the
following
address
______________________________________________.
This affidavit is submitted by the below named
contractor/subcontractor to _______________________________________________________, a supplier of
building
materials,
for
the
purpose
of
authorizing
said
supplier
to
furnish
building
materials
to
contractor/subcontractor for use in a lump sum or unit price contract in Durham and Orange Counties without
charging the additional 0.50% Transit sales or use tax.
It is understood and agreed that the contractor will retain on file the original or duplicate original of said lump sum or
unit price contract for a period of not less than three years from the date this affidavit was executed for examination
by an authorized agent of the Secretary of Revenue of North Carolina with respect to the sales and/or use tax liability
of the aforesaid contractor or supplier.
Contractor/Subcontractor
By: _________________
_____________________
_____________________
________________
Authorized Agent
Title
Telephone Number
Date
INSTRUCTIONS
1. This affidavit must be fully completed in all respects by a contractor or a subcontractor who entered into a lump
sum or unit price contract, or was awarded a contract pursuant to a bid made, prior to April 1, 2013, for the
erection, alteration or repair of a building or structure in Durham or Orange Counties.
It must be submitted by
such contractor to a supplier of building materials as evidence of the holding of such lump sum or unit price
contract.
2. The building materials supplier and the contractor each should retain the affidavit on file for a period of not less
than three years.
3. The contractor must retain on file the original or duplicate original of the lump sum or unit price contract.
4. Purchase orders, invoices, shipping orders, delivery tickets or any other pertinent records of the supplier and/or
contractor are subject to examination as evidence of such facts.
Under the provisions of G.S. 105-236(7), any person who willfully attempts, or who aids or abets any person to
attempt, in any manner to evade or defeat any tax imposed by law, or the payment of the tax, is guilty of a Class H
felony. For each misuse of an exemption certificate, the Secretary must assess against the purchaser a penalty of
$250.

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