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Taxes
SECTION: PURCHASING
PART: Pol
STATEMENT NO. 15.0
- General Administration, being an agency of the State of North
Carolina, is exempt from the Federal Excise Tax.
- Other than for those categories of items exempted by law, all purchases
of supplies and materials by General Administration are subject to six percent
(6%) State and County Sales and Use Tax. All State sales taxes are figured
on the total cost, excluding freight costs, if the shipment originated within
the State. If the shipment originated outside North Carolina, the freight
costs are also taxable at six percent (6%).
- It is not necessary to include the extension of the sales taxes when
submitting a purchase requisition for materials. the Purchasing Office will
extend the tax after the correct price for the materials has been determined.
- Items Generally Exempted from Sales Taxes
- Items purchased for resale are exempted. The sales tax is
collected and paid at the point of sale. Purchase requisitions covering
such items must bear the notation, "Tax Exempt Purchase for Resale."
Vendors whose sales are exempt from the tax based on resale must have on
file an exemption certificate. When appropriate, the Purchasing Department
will furnish the vendors with the exemption certificates.
- Purchases of services, such as laboratory tests and analyses.
- Purchases of seed, feed for livestock or poultry, fertilizers, insecticides,
and herbicides.
- Labor portion of charges for repairs to equipment when labor can be identified
as a separate charge.
- Repairs and alterations, such as painting, masonry work, electrical work
and plumbing where the order is for the vendor to furnish labor and material.
The vendor pays the tax on the materials that are used and includes the
tax in the total cost. If General Administration buys the materials for
a repair vendor to use, then the purchase of the materials is subject to
sales tax.
- Rental of real property.
- Certain orthopedic products designed to be implanted in the body or prescribed
by a physician to be worn on the body.
- Items Taxable at Special Rates
- Highway motor vehicles are taxed at three (3) percent rate
per vehicle.
- Purchases of supplies or equipment which are used in the manufacture
of a product, such as water and electric power, or used in a laundry operation
are taxed at a one (l) percent rate with a maximum or $80.00 per item.
- Purchases of supplies or equipment which are used in commercial broadcasting
(both radio and television) are taxed at a one (1) percent rate with a maximum
of $80.00 per item.
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Last Modified 5/21/97
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