North Carolina § 105-164 - 6. Complementary use tax.

§ 105-164. 6. Complementary use tax.

Tax. - An excise tax at the applicable rate and maximum tax, if any, set in G.S. 105-164.4 is imposed on the following items if the item is subject to tax under G.S. 105-164.4: Tangible personal property purchased, leased, or rented inside or outside this State for storage, use, or consumption in this State. This subdivision includes tangible personal property that becomes part of a building or another structure. Certain digital property purchased inside or outside this State for storage, use, or consumption in this State. Services sourced to this State. Liability. - The tax imposed by this section is payable by the person who purchases, leases, or rents the items listed in subdivision (a) of this section. If an item purchased becomes a part of real property in the State, the real property contractor, the retailer-contractor, the subcontractor, the lessee, and the owner are jointly and severally liable for the tax, except as provided in G.S. 105-164.4H(a1) regarding receipt of an affidavit of capital improvement. The liability of a real property contractor, a retailer-contractor, a subcontractor, a lessee, or an owner who did not purchase the item is satisfied by receipt of an affidavit from the purchaser certifying that the tax has been paid. Credit. - A credit is allowed against the tax imposed by this section for the following: The amount of sales or use tax paid on the item to this State, provided the tax is stated and charged separately on the invoice or other document of the retailer given to the purchaser at the time of the sale, except as otherwise provided in G.S. 105-164.7, or provided the retailer remitted the tax subsequent to the sale and the purchaser obtains such documentation. Payment of sales or use tax to this State on an item by a retailer extinguishes the liability of a purchaser for the tax imposed under this section. The amount of sales or use tax due and paid on the item to another state. If the amount of tax paid to the other state is less than the amount of tax imposed by this section, the difference is payable to this State. The credit allowed by this subdivision does not apply to tax paid to a state that does not grant a similar credit for sales or use taxes paid in North Carolina. , (e) Repealed by Session Laws 2005-276, s. 33.8, effective October 1, 2005. Registration. - A person must obtain a certificate of registration in accordance with G.S. 105-164.29 under any of the following circumstances: Before the person engages in business in this State selling or delivering items for storage, use, or consumption in this State. If the person is a facilitator that is liable for tax under this Article. Repealed by Session Laws 1995, c. 7, s. 1. History (1957, c. 1340, s. 5; 1959, c. 1259, s. 5; 1961, c. 826, s. 2; 1967, c. 1110, s. 6; 1973, c. 476, s. 193; 1979, c. 17, s. 2; c. 48, ss. 3, 4; c. 179, s. 3; c. 527, s. 2; 1979, 2nd Sess., c. 1100, s. 1; c. 1175; 1981, cc. 18, 65; 1983, c. 713, s. 90; 1983 (Reg. Sess., 1984), c. 1065, s. 3; 1989, c. 692, s. 3.4; 1991, c. 689, s. 312; c. 690, s. 3; 1995, c. 7, s. 1; c. 17, s. 7; 1998-121, s. 4; 1999-438, s. 1.1; 2001-414, s. 15; 2003-416, ss. 17, 24(a); 2005-276, s. 33.8; 2006-162, s. 6; 2009-451, s. 27A.3(h); 2011-330, s. 25(a); 2013-414, s. 10; 2014-3, s. 14.9(a); 2017-39, s. 6; 2017-204, s. 2.4(c); 2018-5, s. 38.5(g); 2019-169, s. 3.3(e).) Editor's Note. - Session Laws 2017-204, s. 2.13, provides: "Except as otherwise provided, Sections 2.1 through 2.8 of this part become effective retroactively to January 1, 2017, and apply to sales and purchases made on or after that date. Any amendments made in Sections 2.1 through 2.8 of this part that increase sales or use tax liability are effective when this act becomes law. The remainder of this part is effective when it becomes law." Session Laws 2017-204, s. 7.1, is a severability clause. Session Laws 2018-5, s. 38.5(aa), made the amendment of subsection (b) of this section by Session Laws 2018-5, s. 38.5(g), effective retroactively to January 1, 2017, and applicable to sales and purchases made on or after that date. Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Effect of Amendments. - Session Laws 2003-416, s. 17, effective August 14, 2003, added the first sentence of the last paragraph in subsection (f). Session Laws 2003-416, s. 24.(a), effective August 14, 2003, inserted "use" in the section heading. Session Laws 2005-276, s. 33.8, effective October 1, 2005, rewrote the section. Session Laws 2006-162, s. 6, effective July 24, 2006, inserted "or use" in the middle of the first sentence of subdivision (c)(2). Session Laws 2009-451, s. 27A.3(h), effective August 7, 2009, inserted "or digital property" in subdivisions (a)(1) and (a)(2), and in the first sentence of subsection (b); and inserted "digital property, or a service" in the first sentence of the first paragraph of subsection (f). Session Laws 2011-330, s. 25(a), effective June 27, 2011, inserted "due and" in the first sentence of subdivision (c)(2). Session Laws 2013-414, s. 10, effective August 23, 2013, added "provided the tax is stated ... obtains such documentation" at the end of the first sentence of subdivision (c)(1). Session Laws 2014-3, s. 14.9(a), effective May 29, 2014, rewrote subsection (f). Session Laws 2017-39, s. 6, effective June 21, 2017, substituted "under this Article" for "pursuant to G.S. 105-164.4 F" in subdivision (f)(2). Session Laws 2017-204, s. 2.4(c), rewrote subsection (b). For effective date and applicability, see editor's note. Session Laws 2018-5, s. 38.5(g), substituted "G.S. 105-164.4H(a1)" for "G.S. 105-164.4H(a)." For effective date and applicability, see editor's note. Session Laws 2019-169, s. 3.3(e), effective July 26, 2019, rewrote subsection (a); in subsection (b), substituted "the items listed in subdivision (a) of this section" for "tangible personal property or digital property or who purchases a service" in the first sentence, substituted "an item" for "the property" in the second sentence, and substituted "item" for "property" in the last sentence; and substituted "items" for "tangible personal property, digital property, or a service" in subdivision (f)(1). Legal Periodicals. - For survey of 1979 tax law, see 58 N.C.L. Rev. 1548 (1980).