North Carolina § 105-164 - 12C. Items given away by merchants.

§ 105-164. 12C. Items given away by merchants.

If a retailer engaged in the business of selling prepared food or drink for immediate or on-premises consumption also gives prepared food or drink to its patrons or employees free of charge, for the purpose of this Article, the food or drink given away is considered sold along with the food or drink sold. If a retailer gives an item of inventory to a customer free of charge on the condition that the customer purchase a similar or related item, the item given away is considered sold along with the item sold. In all other cases, items given away or used by any retailer or wholesale merchant are not considered sold, whether or not the retailer or wholesale merchant recovers its cost of the items from sales of other items. History (2012-79, s. 2.10(a); 2019-169, s. 3.3(j).) Editor's Note. - Session Laws 2012-79, s. 2.10(b), made this section retroactively effective August 7, 2009. Effect of Amendments. - Session Laws 2019-169, s. 3.3(j), effective July 26, 2019, substituted "item" or "items" for "property" throughout the section; substituted "food or drink" for "property" twice in the first sentence; and made minor stylistic changes. PART 3. EXEMPTIONS AND EXCLUSIONS.