Section 105-164.4 - Tax imposed on retailers and certain facilitators(a) A privilege tax is imposed on a retailer engaged in business in the State at the percentage rates of the retailer's net taxable sales or gross receipts, listed in this subsection. The general rate of tax is four and three-quarters percent (4.75%). The percentage rates are as follows: (1) The general rate of tax applies to the following items sold at retail: a. The sales price of each article of tangible personal property that is not subject to tax under another subdivision in this section. A sale of a freestanding appliance is a retail sale of tangible personal property.b. The sales price of certain digital property. The tax applies regardless of whether the purchaser of the property has a right to use it permanently or to use it without making continued payments. The sale at retail or the use, storage, or consumption in this State of a digital code is treated the same as the sale at retail or the use, storage, or consumption in this State of certain digital property for which the digital code relates.c. The sales price of or gross receipts derived from repair, maintenance, and installation services to tangible personal property or certain digital property, regardless of whether the tangible personal property or certain digital property is taxed under another subdivision in this section or is subject to a maximum tax under another subdivision in this section. Repair, maintenance, and installation services generally include any tangible personal property or certain digital property that becomes a part of or is applied to a purchaser's property. The use tax exemption in G.S. 105-164.27A(a3) may apply to these services. Repair, maintenance, and installation services for real property are taxable under subdivision (16) of this subsection.(1a) The general rate applies to the sales price of each of the following items sold at retail, including all accessories attached to the item when it is delivered to the purchaser: b. A modular home. The sale of a modular home to a modular homebuilder is considered a retail sale, no matter that the modular home may be used to fulfill a real property contract. A person who sells a modular home at retail is allowed a credit against the tax imposed by this subdivision for sales or use tax paid to another state on tangible personal property incorporated in the modular home. The retail sale of a modular home occurs when a modular home manufacturer sells a modular home to a modular homebuilder or directly to the end user of the modular home.c. An aircraft. The maximum tax is two thousand five hundred dollars ($2,500) per article. d. A qualified jet engine.(1b) The rate of three percent (3%) applies to the sales price of each boat sold at retail, including all accessories attached to the boat when it is delivered to the purchaser. The maximum tax is one thousand five hundred dollars ($1,500) per article. The maximum tax does not apply to the sales price of or gross receipts derived from the sales price of or gross receipts derived from repair, maintenance, and installation services, but the use tax exemption in G.S. 105-164.27A(a3) may apply to these services.(1e) Repealed by Session Laws 2005-276, s. 33.4(b), effective January 1, 2006.(1f) Repealed by Session Laws 2013-316, s. 4.1(c), effective July 1, 2014, and applicable to gross receipts billed on or after July 1, 2014.a. Repealed by Session Laws 2007-397, s. 10(b), effective October 1, 2007, and applicable to sales occurring on or after that date.b. Repealed by Session Laws 2006-66, s. 24.19(a), effective July 1, 2007, and applicable to sales made on or after that date.c. Repealed by Session Laws 2007-397, s. 10(b), effective October 1, 2007, and applicable to sales occurring on or after that date.(1g) Repealed by Session Laws 2004-110, s. 6.1, effective October 1, 2004, and applicable to sales of electricity made on or after that date.(1h) Expired pursuant to Session Laws 2004-110, s. 6.4, effective for sales made on or after October 1, 2007.(1i) Repealed by Session Laws 2007-397, s. 10(a), effective October 1, 2007, and applicable to sales occurring on or after that date.(1j) Repealed by Session Laws 2007-397, s. 10(f), effective July 1, 2010, and applicable to sales occurring on or after that date.(2) The applicable percentage rate applies to the gross receipts derived from the lease or rental of tangible personal property by a person who is engaged in business of leasing or renting tangible personal property, or is a retailer and leases or rents property of the type sold by the retailer. The applicable percentage rate is the rate and the maximum tax, if any, that applies to a sale of the property that is leased or rented. A person who leases or rents property shall also collect the tax imposed by this section on the separate retail sale of the property.(3) The general rate applies to the gross receipts derived from the rental of an accommodation. These rentals are taxed in accordance with G.S. 105-164.4F.(4) Every person engaged in the business of operating a dry cleaning, pressing, or hat-blocking establishment, a laundry, or any similar business, engaged in the business of renting clean linen or towels or wearing apparel, or any similar business, or engaged in the business of soliciting cleaning, pressing, hat blocking, laundering or linen rental business for any of these businesses, is considered a retailer under this Article. A tax at the general rate of tax is levied on the gross receipts derived by these retailers from services rendered in engaging in any of the occupations or businesses named in this subdivision. The tax imposed by this subdivision does not apply to receipts derived from coin, token, or card-operated washing machines, extractors, and dryers. The tax imposed by this subdivision does not apply to gross receipts derived from services performed for resale by a retailer that pays the tax on the total gross receipts derived from the services.(4a) Repealed by Session Laws 2013-316, s. 4.1(c), effective July 1, 2014, and applicable to gross receipts billed on or after July 1, 2014.(4b) A person who sells tangible personal property at a specialty market or other event, other than the person's own household personal property, is considered a retailer under this Article. A tax at the general rate of tax is levied on the sales price of each article sold by the retailer at the specialty market or other event. The term "specialty market" has the same meaning as defined in G.S. 66-250.(4c) The combined general rate applies to the gross receipts derived from providing telecommunications service and ancillary service, including any separately stated charges billed to a customer for repair, maintenance, and installation services or a contribution in aid of construction. A person who provides telecommunications service or ancillary service is considered a retailer under this Article. These services are taxed in accordance with G.S. 105-164.4C. (4d) The general rate applies to the gross receipts derived from the sale or recharge of prepaid telephone calling service. The tax applies regardless of whether tangible personal property, such as a card or a telephone, is transferred. The tax applies to a service that is sold in conjunction with prepaid wireless calling service. Prepaid telephone calling service is taxable at the point of sale instead of at the point of use and is sourced in accordance with G.S. 105-164.4B. Prepaid telephone calling service taxed under this subdivision is not subject to tax as a telecommunications service.(5) Repealed by Session Laws 1998-212, s. 29A.1(a), effective May 1, 1999.(6) The combined general rate applies to the gross receipts derived from providing video programming to a subscriber in this State, including any separately stated charges billed to a customer for repair, maintenance, and installation services or a contribution in aid of construction. A cable service provider, a direct-to-home satellite service provider, and any other person engaged in the business of providing video programming is considered a retailer under this Article. (6a) The general rate applies to the gross receipts derived from providing satellite digital audio radio service. For services received by a mobile or portable station, the service is sourced to the subscriber's business or home address. A person engaged in the business of providing satellite digital audio radio service is a retailer under this Article.(6b) [Deleted by 2019 amendment.] (7) The combined general rate applies to the sales price of antique spirituous liquor and spirituous liquor other than mixed beverages. As used in this subdivision, the terms "antique spirituous liquor", "spirituous liquor", and "mixed beverage" have the meanings provided in G.S. 18B-101.(8) Repealed by Session Laws 2015-259, s. 4.2(b), effective October 1, 2015, and applicable to sales made on or after that date.(9) The combined general rate applies to the gross receipts derived from sales of electricity and piped natural gas, including any separately stated charges billed to a customer for repair, maintenance, and installation services or a contribution in aid of construction. (10) The general rate of tax applies to the gross receipts derived from an admission charge to an entertainment activity. Gross receipts derived from an admission charge to an entertainment activity are taxable in accordance with G.S. 105-164.4G.(11) The general rate of tax applies to the sales price of or the gross receipts derived from a service contract. A service contract is taxed in accordance with G.S. 105-164.4I.(12) The general rate of tax applies to the sales price of or gross receipts derived from a prepaid meal plan. A bundle that includes a prepaid meal plan is taxable in accordance with G.S. 105-164.4D.(13) Repealed by Session Laws 2017-204, s. 2.2.(14), (14a) Expired pursuant to Session Laws 2014-39, s. 1(e), effective July 1, 2015.(15) The combined general rate applies to the gross receipts derived from the sale of aviation gasoline and jet fuel.(16) The general rate applies to the sales price of or the gross receipts derived from repair, maintenance, and installation services for real property and generally includes any tangible personal property or certain digital property that becomes a part of or is applied to a purchaser's property. A mixed transaction contract and a real property contract are taxed in accordance with G.S. 105-164.4H. A property management contract is taxable in accordance with G.S. 105-164.4K.(b) The tax levied in this section shall be collected from the retailer and paid by him at the time and in the manner as hereinafter provided. A person engaging in business as a retailer shall pay the tax required on the net taxable sales of the business at the rates specified when proper books are kept showing separately the gross proceeds of taxable and nontaxable sales of items subject to tax under subsection (a) of this section in a form that may be accurately and conveniently checked by the Secretary or the Secretary's duly authorized agent. If the records are not kept separately, the tax shall be paid on the gross sales of the business and the exemptions and exclusions provided by this Article are not allowed. The tax levied in this section is in addition to all other taxes whether levied in the form of excise, license, privilege, or other taxes. The requirements of this subsection apply to facilitators liable for tax under this Article.(c) Certificate of Registration. - Before a person may engage in business as a retailer or a wholesale merchant in this State, the person must obtain a certificate of registration from the Department in accordance with G.S. 105-164.29. A facilitator that is liable for tax under this Article must obtain a certificate of registration from the Department in accordance with G.S. 105-164.29.N.C. Gen. Stat. § 105-164.4
Amended by 2020 N.C. Sess. Laws 58, s. 3.4, eff. 6/30/2020.Amended by 2019 N.C. Sess. Laws 169, s. 3.9-d, eff. 7/26/2019.Amended by 2019 N.C. Sess. Laws 169, s. 3.4-a, eff. 7/26/2019.Amended by 2019 N.C. Sess. Laws 169, s. 3.2, eff. 7/26/2019.Amended by 2018 N.C. Sess. Laws 5, s. 38.5-c, eff. 6/12/2018.Amended by 2017 N.C. Sess. Laws 204, s. 2.2, eff. 1/1/2017.Amended by 2016 N.C. Sess. Laws 94, s. 38.5-e, eff. 1/1/2017.Amended by 2016 N.C. Sess. Laws 92, s. 2.3, eff. 7/11/2016.Amended by 2015 N.C. Sess. Laws 259, s. 4.1-b, eff. 1/1/2016.Amended by 2015 N.C. Sess. Laws 259, s. 4.2-b, eff. 10/1/2015.Amended by 2015 N.C. Sess. Laws 241, s. 32.18-b, eff. 3/1/2016.Amended by 2015 N.C. Sess. Laws 98, s. 1-h.Amended by 2014 N.C. Sess. Laws 39, s. 1-a, eff. 7/1/2014, exp. 7/1/2015.Amended by 2014 N.C. Sess. Laws 3, s. 8.1-a, eff. 6/1/2014.Amended by 2014 N.C. Sess. Laws 3, s. 7.1-b, eff. 1/1/2015.Amended by 2014 N.C. Sess. Laws 3, s. 6.1-b, eff. 10/1/2014.Amended by 2014 N.C. Sess. Laws 3, s. 4.1-b, s. 5.1-a, s. 14.8, eff. 5/29/2014.Amended by 2013 N.C. Sess. Laws 414, s. 9, s. 40, eff. 8/23/2013.Amended by 2013 N.C. Sess. Laws 316, s. 4.1-c, s. 4.1-e, eff. 7/1/2014.Amended by 2013 N.C. Sess. Laws 316, s. 3.1-a, s. 5-b, s. 6-b, eff. 1/1/2014.Amended by 2011 N.C. Sess. Laws 330, s. 16, eff. 6/27/2011.Amended by 2010 N.C. Sess. Laws 31, s. 31.6.(a), eff. 1/1/2011.Amended by 2009 N.C. Sess. Laws 451, s. 27A.3.(e), eff. 1/1/2010.Amended by 2009 N.C. Sess. Laws 451, s. 27A.2.(b), eff. 10/1/2009, exp. 7/1/2011.Amended by 2007 N.C. Sess. Laws 397, ss. 10.(a), 10.(b), 10.(c), eff. 10/1/2007, s. 10.(d), eff. 7/1/2008, s. 10.(e), eff. 7/1/2009, and s. 10.(f), eff. 7/1/2010.Amended by 2007 N.C. Sess. Laws 323, ss. 31.2.(a), 31.2.(b), eff. 7/1/2007, s. 31.16.3.(h), eff. 10/1/2008, and s. 31.16.4.(g), eff. 10/1/2009.Amended by 2007 N.C. Sess. Laws 145, s. 9.(a), eff. 6/29/2007.Amended by 2006 N.C. Sess. Laws 66, s. 24.1.(a), eff. 7/1/2006, s. 24.1.(b), eff. 12/1/2006, ss. 24.19.(a), 24.19.(b), 24.1.(c), eff. 7/1/2007, and s. 24.1.(c), eff. 8/1/2007, as amended by 2007 N.C. Sess. Laws 145, s. 9.(a), eff. 6/29/2007, and by 2007 N.C. Sess. Laws 323, s. 31.2.(a), eff. 7/1/2007.Amended by 2006 N.C. Sess. Laws 151, s. 3, eff. 1/1/2007.Amended by 2006 N.C. Sess. Laws 33, s. 11, eff. 7/1/2006 and s. 2, eff. 1/1/2007.Amended by 2005 N.C. Sess. Laws 276, s. 33.1, eff. 7/1/2005, s. 33.4.(a), eff. 10/1/2005, and s. 33.4.(b), eff. 1/1/2006. 2005 N.C. Sess. Laws 276, s. 33.1, amended the expiration date set in 2001 - 424, s. 34.13(a).Amended by 2005 N.C. Sess. Laws 144, s. 9.1, eff. 6/30/2005.Amended by 2004 N.C. Sess. Laws 0110, ss. 6.1, 6.2, 6.3, eff. 10/1/2004, exp. 10/1/2007.Amended by 2003 N.C. Sess. Laws 0284, s. 38.1, eff. 6/30/2003.Amended by 2003 N.C. Sess. Laws 0400, s. 15, eff. 1/1/2004.Amended by 2002 - 16, s. 4, eff. 8/1/2002.Amended by 2001 - 424, s. 34.13(a), eff. 10/16/2001, exp. 7/1/2007, ss. 34.17(a) and 34.25(a), eff. 1/1/2002, and s. 34.23(b), eff. 12/1/2001.Amended by 2001 - 430, s. 3, s. 4, and s. 5, eff. 1/1/2002.Amended by 2001 - 476, s. 17(b), eff. 7/1/2002, s. 17(c), eff. 7/1/2002, s. 17(d), eff. 11/29/2001, and s. 17(f), eff. 7/1/2005.Amended by 2001 - 487, s. 67(b), eff. 1/1/2002, and ss. 122(a), 122(b), and 122(c), eff. 12/16/2001. 1957, c. 1340, s. 5; 1959, c. 1259, s. 5; 1961 , c. 826, s. 2; 1963 , c. 1169, ss. 3, 11; 1967 , c. 1110, s. 6; c. 1116; 1969 , c. 1075, s. 5; 1971 , c. 887, s. 1; 1973 , c. 476, s. 193; c. 1287, s. 8; 1975 , c. 752; 1977 , c. 903; 1977, 2nd Sess., c. 1218; 1979 , c. 17, s. 1; c. 22; c. 48, s. 1;c. 527, s. 1; c. 801, s. 73; 1981 , c. 984, ss. 1, 2; 1981 (Reg. Sess., 1982), cc. 1207, 1273; 1983 , c. 510; c. 713, ss. 89, 93; c. 805, ss. 1, 2; 1983 (Reg. Sess., 1984), c. 1065, ss. 1, 2, 4; c. 1097, ss. 6, 13; 1985 , c. 704; 1985 (Reg. Sess., 1986), c. 925; c. 1005; 1987 , c. 557, ss. 4, 5; c. 800, ss. 2, 3; c. 854, s. 1; 1987 (Reg. Sess., 1988), c. 1044, s. 4; 1989 , c. 692, ss. 3.1, 3.3, 8.4 ( 8); c. 770, s. 74.4; 1989 (Reg. Sess., 1990), c. 813, ss. 14, 15; 1991 , c. 598, s. 5; c. 689, s. 311; c. 690, s. 1; 1993, c. 372, s. 1; c. 484, s. 2; 1995 , c. 17, s. 6; c. 477, s. 1; 1996, 2nd Ex. Sess., c. 13, ss. 1.1, 9.1, 9.2; 1997-475, s. 1.1; 1998-22, s. 5; 1998-55, ss. 8, 14; 1998-98, ss. 13.2, 48(a), (b); 1998-121, ss. 3, 5; 1998-197, s, 1; 1998-212, s. 29A.1(a); 1999-337, ss. 29, 30; 1999-360, s. 3(a), (b); 1999-438, s. 1; 2000-140, s. 67(a). See 2017 N.C. Sess. Laws 204, s. 2.13. See 2014 N.C. Sess. Laws 3, s. 5.1-f. See 2013 N.C. Sess. Laws 414, s. 51. See 2007 N.C. Sess. Laws 145, s. 9.(b). See 2001 - 424, s. 34.13(b).