North Carolina § 105-164 - 10. Retail tax calculation.

§ 105-164. 10. Retail tax calculation.

For the convenience of the retailer in collecting the tax due under this Article, the Secretary must prescribe tables that compute the tax due on sales. The Secretary must issue a separate table for each rate of tax that may apply to a sale. A retailer is not required to collect tax due under this Article based on a bracket system. In computing tax due under this Article, the tax computation must be carried to the third decimal place and must round up to the next cent whenever the third decimal place is greater than four. A person liable for tax under this Article may elect to compute the tax due on a transaction on an item or invoice basis and the rounding rule is applied to the aggregate tax due. History (1957, c. 1340, s. 5; 1961, c. 826, s. 2; 1973, c. 476, s. 193; 1991, c. 689, s. 313; 2013-316, s. 5(e); 2014-3, s. 5.1(f); 2017-204, s. 2.9(h).) Editor's Note. - Session Laws 2013-316, s. 5(f), as amended by Session Laws 2014-3, s. 5.1(f), provides: "This section becomes effective January 1, 2014, and applies to gross receipts derived from an admission charge sold at retail on or after that date. For admissions to a live event, the tax applies to the initial sale or resale of tickets occurring on or after that date; gross receipts received on or after January 1, 2014, for admission to a live event, for which the initial sale of tickets occurred before that date, other than gross receipts received by a ticket reseller, are taxable under G.S. 105-37.1 . Gross receipts derived from an admission charge sold at retail to a live event occurring on or after January 1, 2015, are taxable under G.S. 105-164.4 G, regardless of when the initial sale of a ticket to the event occurred." Session Laws 2013-316, s. 9(a), provides: "This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal." Effect of Amendments. - Session Laws 2013-316, s. 5(e), effective January 1, 2014, substituted "tax calculation" for "bracket system" in the section heading; and substituted "Secretary must" for "Secretary shall" in the first and second sentences, and deleted "including the general rate established in G.S. 105-164.4 , preferential rates, and combined State and local rates. Use of the tables prescribed by the Secretary does not relieve a retailer of liability for the applicable rate of tax due on the gross receipts of net taxable sales of the retailer" following "sale" at the end. For applicability, see editor's note. Session Laws 2017-204, s. 2.9(h), effective August 11, 2017, in the first paragraph, deleted "by rounding off the amount of tax due to the nearest whole cent" following "on sales" at the end of the first sentence, and added the last sentence; and added the second paragraph.