North Carolina § 105-164 - 13. Retail sales and use tax.

§ 105-164. 13. Retail sales and use tax.

The sale at retail and the use, storage, or consumption in this State of the following items are specifically exempted from the tax imposed by this Article: Agricultural Group. Repealed by Session Laws 2013-316, s. 3.3(b), effective July 1, 2014, and applicable to sales made on or after that date. , (1b) Repealed by Session Laws 2013-316, s. 3.3(b), effective July 1, 2014, and applicable to sales made on or after that date. Repealed by Session Laws 2001, c. 514, s. 1, effective February 1, 2002. Repealed by Session Laws 2013-316, s. 3.3(b), effective July 1, 2014, and applicable to sales made on or after that date. Items for a farmer may be exempt as provided in G.S. 105-164.13E. Products of forests and mines in their original or unmanufactured state when such sales are made by the producer in the capacity of producer. Cotton, tobacco, peanuts or other farm products sold to manufacturers for further manufacturing or processing. Repealed by Session Laws 2013-316, s. 3.3(b), effective July 1, 2014, and applicable to sales made on or after that date. Products of a farm sold in their original state by the producer of the products if the producer is not primarily a retail merchant and ice used to preserve agriculture, aquaculture and commercial fishery products until the products are sold at retail. , (4d) Repealed by Session Laws 2013-316, s. 3.3(b), effective July 1, 2014, and applicable to sales made on or after that date. Repealed by Session Laws 2006-162, s. 8(b), effective July 24, 2006. Sales of the following to a person who is engaged in the commercial logging business: Logging machinery. - Logging machinery is machinery used to harvest raw forest products for transport to first market. Attachments and repair parts for logging machinery. Lubricants applied to logging machinery. Fuel used to operate logging machinery. A wood chipper that meets all of the following requirements: It is designed to be towed by a motor vehicle. It is assigned a 17-digit vehicle identification number by the National Highway Transportation Safety Association. It is sold to a person who purchases a motor vehicle in this State that is to be registered in another state and who uses the purchased motor vehicle to tow the wood chipper to the state in which the purchased motor vehicle is to be registered. Manufactured products produced and sold by manufacturers or producers to other manufacturers, producers, or registered retailers or wholesale merchants, for the purpose of resale except as modified by G.S. 105-164.3(279). This exemption does not extend to or include retail sales to users or consumers not for resale. Repealed by Session Laws 2017-57, s. 38.8(c), as amended by Session Laws 2017-212, s. 7.2(a), effective July 1, 2018, and applicable to sales made on or after that date. Sales to a telephone company regularly engaged in providing telecommunications service to subscribers on a commercial basis of central office equipment, switchboard equipment, private branch exchange equipment, terminal equipment other than public pay telephone terminal equipment, and parts and accessories attached to the equipment. Sales of towers, broadcasting equipment, and parts and accessories attached to the equipment to a radio or television company licensed by the Federal Communications Commission. Sales of broadcasting equipment and parts and accessories attached to the equipment to a cable service provider. For the purposes of this subdivision, "broadcasting equipment" does not include cable. Sales of mill machinery or mill machinery parts or accessories to any of the persons listed in this subdivision. For purposes of this subdivision, the term "accessories" does not include electricity. The persons are: A manufacturing industry or plant. A manufacturing industry or plant does not include (i) a delicatessen, cafe, cafeteria, restaurant, or another similar retailer that is principally engaged in the retail sale of food prepared by it for consumption on or off its premises or (ii) a production company. A contractor or subcontractor if the purchase is for use in the performance of a contract with a manufacturing industry or plant. A subcontractor if the purchase is for use in the performance of a contract with a general contractor that has a contract with a manufacturing industry or plant. Sales to a major recycling facility of any of the following tangible personal property for use in connection with the facility: Cranes, structural steel crane support systems, and foundations related to the cranes and support systems. Port and dock facilities. Rail equipment. Material handling equipment. Sales of equipment, or an attachment or repair part for equipment, that meets all of the following requirements: Is sold to a company primarily engaged at the establishment in research and development activities in the physical, engineering, and life sciences included in industry group 54171 of NAICS. Is capitalized by the company for tax purposes under the Code. Is used by the company at the establishment in the research and development of tangible personal property. Sales of equipment, or an attachment or repair part for equipment, that meets all of the following requirements: Is sold to a company primarily engaged at the establishment in software publishing activities included in industry group 5112 of NAICS. Is capitalized by the company for tax purposes under the Code. Is used by the company at the establishment in the research and development of tangible personal property. Sales of equipment, or an attachment or repair part for equipment, that meets all of the following requirements: Is sold to a company primarily engaged at the establishment in industrial machinery refurbishing activities included in industry group 811310 of NAICS. Is capitalized by the company for tax purposes under the Code. Is used by the company at the establishment in repairing or refurbishing tangible personal property. Sales of the following to a company located at a ports facility for waterborne commerce: Machinery and equipment that is used at the facility to unload or to facilitate the unloading or processing of bulk cargo to make it suitable for delivery to and use by manufacturing facilities. Parts, accessories, or attachments used to maintain, repair, replace, upgrade, improve, or otherwise modify such machinery and equipment. Sales of the following to a secondary metals recycler: Equipment, or an attachment or repair part for equipment, that (i) is capitalized by the person for tax purposes under the Code, (ii) is used by the person in the secondary metals recycling process, and (iii) is not a motor vehicle or an attachment or repair part for a motor vehicle. Fuel, piped natural gas, or electricity for use at the person's facility at which the primary activity is secondary metals recycling. Sales of equipment, or an attachment or repair part for equipment, that meets all of the following requirements: Is sold to a company primarily engaged at the establishment in processing tangible personal property for the purpose of extracting precious metals, as defined in G.S. 66-406, to determine the value for potential purchase. Is capitalized by the company for tax purposes under the Code. Is used by the company in the process described in this subdivision. Sales of equipment, or an attachment or repair part for equipment, that meets all of the following requirements: Is sold to a company that is engaged in the fabrication of metal work and that has annual gross receipts, including the gross receipts of all related persons, as defined in G.S. 105-163.010, from the fabrication of metal work of at least eight million dollars ($8,000,000). Is capitalized by the company for tax purposes under the Code. Is used by the company at the establishment in the fabrication or manufacture of metal products or used by the company to create equipment for the fabrication or manufacture of metal products. Sales of repair or replacement parts for a ready-mix concrete mill, regardless of whether the mill is freestanding or affixed to a motor vehicle, to a company that primarily sells ready-mix concrete. Sales of equipment, or an accessory, an attachment, or a repair part for equipment, that meets all of the following requirements: Is sold to a large fulfillment facility or to a contractor or subcontractor if the purchase is for use in the performance of a contract with the large fulfillment facility. Is used at the facility for any of the following purposes: In the distribution process, which includes receiving, inventorying, sorting, repackaging, or distributing finished retail products. Baling previously used packaging for resale, sanitizing required by federal law, or material handling. Is not electricity. Sales of equipment, or an attachment or repair part for equipment, which is used in cutting, shaping, polishing, and finishing rough cut slabs and blocks of natural and engineered stone and stone-like products and sold to a company primarily engaged in the business of providing made-to-order countertops, walls, or tubs. Repealed by Session Laws 1989 (Regular Session, 1990), c. 1068, s. 1. Sales of products of waters in their original or unmanufactured state when such sales are made by the producer in the capacity of producer. Fish and seafoods are likewise exempt when sold by the fisherman in that capacity. Sales to a manufacturer of tangible personal property that enters into or becomes an ingredient or component part of tangible personal property that is manufactured. This exemption does not apply to sales of electricity. Sales to a small power production facility, as defined in 16 U.S.C. § 796(17)(A), of fuel and piped natural gas used by the facility to generate electricity. Boats, fuel oil, lubricating oils, machinery, equipment, nets, rigging, paints, parts, accessories, and supplies sold to any of the following: The holder of a standard commercial fishing license issued under G.S. 113-168.2 for principal use in commercial fishing operations. The holder of a shellfish license issued under G.S. 113-169.2 for principal use in commercial shellfishing operations. The operator of a for-hire vessel, as defined in G.S. 113-174, for principal use in the commercial use of the boat. Sales of the following to commercial laundries or to pressing and dry cleaning establishments: Articles or materials used for the identification of garments being laundered or dry cleaned, wrapping paper, bags, hangers, starch, soaps, detergents, cleaning fluids and other compounds or chemicals applied directly to the garments in the direct performance of the laundering or the pressing and cleaning service. Laundry and dry-cleaning machinery, parts and accessories attached to the machinery, and lubricants applied to the machinery. Fuel and piped natural gas used in the direct performance of the laundering or the pressing and cleaning service. The exemption does not apply to electricity. Sales of the following to a major recycling facility: Lubricants and other additives for motor vehicles or machinery and equipment used at the facility. Materials, supplies, parts, and accessories, other than machinery and equipment, that are not capitalized by the taxpayer and are used or consumed in the manufacturing and material handling processes at the facility. Electricity used at the facility. Recodified as G.S. 105-164.13(10a)c. by Session Laws 2005-276, s. 33.9, effective January 1, 2006. Any of the following fuel: Motor fuel, as taxed in Article 36C of this Chapter, except motor fuel for which a refund of the per gallon excise tax is allowed under G.S. 105-449.105A, G.S. 105-449.106(c) or G.S. 105-449.107. Alternative fuel taxed under Article 36D of this Chapter, unless a refund of that tax is allowed under G.S. 105-449.107. Sales of diesel fuel to railroad companies for use in rolling stock other than motor vehicles. The definitions in G.S. 105-333 apply in this subdivision. (Expires January 1, 2024) Sales of aviation gasoline and jet fuel to an interstate air business for use in a commercial aircraft. For purposes of this subdivision, the term "commercial aircraft" has the same meaning as defined in subdivision (45a) of this section. This exemption also applies to aviation gasoline and jet fuel purchased for use in a commercial aircraft in interstate or foreign commerce by a person whose primary business is scheduled passenger air transportation. This subdivision expires January 1, 2024. Sales of any of the following: Prosthetic devices for human use. Mobility enhancing equipment sold on a prescription. Durable medical equipment sold on prescription. Durable medical supplies sold on prescription. Human blood, including whole, plasma, and derivatives. Human tissue, eyes, DNA, or an organ. All of the drugs listed in this subdivision, including their packaging materials and any instructions or information about the drugs included in the package with them. This subdivision does not apply to pet food or feed for animals. The drugs exempt under this subdivision are as follows: Drugs required by federal law to be dispensed only on prescription. Over-the-counter drugs sold on prescription. This sub-subdivision does not apply to purchases of over-the-counter drugs by hospitals and other medical facilities for use and treatment of patients. Insulin. Repealed by Session Laws 1996, Second Extra Session, c. 14, s. 16. Repealed by Session Laws 1999, c. 438, s. 7, effective October 1, 1999. Repealed by Session Laws 2013-316, s. 3.2(a), effective January 1, 2014, and applicable to sales made on or after that date. Sales of diapers or incontinence underpads on prescription by an enrolled State Medicaid/Health Choice provider for use by beneficiaries of the State Medicaid program when the provider is reimbursed by the State Medicaid program or a Medicaid managed care organization, as defined in 42 U.S.C. § 1396b(m). Public school books on the adopted list, the selling price of which is fixed by State contract. Recodified as subdivision (33a) by Session Laws 2000-120, s. 5, effective July 14, 2000. Accounts of purchasers, representing taxable sales, on which the tax imposed by this Article has been paid, that are found to be worthless and actually charged off for income tax purposes may, at corresponding periods, be deducted from gross sales. In the case of a municipality that sells electricity, the account may be deducted if it meets all the conditions for charge-off that would apply if the municipality were subject to income tax. Any accounts deducted pursuant to this subdivision must be added to gross sales if afterwards collected. For purposes of this exemption, a worthless account of a purchaser is a "bad debt" as allowed under section 166 of the Code. The amount calculated pursuant to section 166 of the Code must be adjusted to exclude financing charges or interest, sales or use taxes charged on the sales price, uncollectible amounts on property that remains in the possession of the seller until the full purchase price is paid, expenses incurred in attempting to collect any debt, and repossessed property. Sales of an article repossessed by the vendor if tax was paid on the sales price of the article. Sales which a state would be without power to tax under the limitations of the Constitution or laws of the United States or under the Constitution of this State. Repealed by Session Laws 2005-276, s. 33.9, effective January 1, 2006. Repealed by Session Laws 1991, c. 618, s. 1. Sales by blind merchants operating under supervision of the Department of Health and Human Services. The lease or rental of motion picture films used for exhibition purposes where the lease or rental of such property is an established business or part of an established business or the same is incidental or germane to said business of the lessee. The lease or rental of films, motion picture films, transcriptions and recordings to radio stations and television stations operating under a certificate from the Federal Communications Commission. Sales of audiovisual masters made or used by a production company in making visual and audio images for first generation reproduction. For the purpose of this subdivision, an "audiovisual master" is an audio or video film, tape, or disk or another audio or video storage device from which all other copies are made. Sales of the following packaging: Wrapping paper, labels, wrapping twine, paper, cloth, plastic bags, cartons, packages and containers, cores, cones or spools, wooden boxes, baskets, coops and barrels, including paper cups, napkins and drinking straws and like articles sold to manufacturers, producers and retailers, when such materials are used for packaging, shipment or delivery of tangible personal property which is sold either at wholesale or retail and when such articles constitute a part of the sale of such tangible personal property and are delivered with it to the customer. A container that is used as packaging by the owner of the container or another person to enclose tangible personal property for delivery to a purchaser of the property and is required to be returned to its owner for reuse. Sales of fuel and other tangible personal property for use or consumption by or on ocean-going vessels which ply the high seas in interstate or foreign commerce in the transport of freight and/or passengers for hire exclusively, when delivered to an officer or agent of such vessel for the use of such vessel; provided, however, that sales of fuel and other tangible personal property made to officers, agents, members of the crew or passengers of such vessels for their personal use shall not be exempted from payment of the sales tax. Sales by merchants on the Cherokee Indian Reservation when such merchants are authorized to do business on the Reservation and are paying the tribal gross receipts levy to the Tribal Council. Food and prepared food sold within the school building during the regular school day. For purposes of this exemption, the term "school" is an entity regulated under Chapter 115C of the General Statutes. Food and prepared food sold not for profit by a public school cafeteria to a child care center that participates in the Child and Adult Care Food Program of the Department of Health and Human Services. Food, prepared food, soft drinks, candy, and other tangible personal property sold not for profit for or at an event that is sponsored by an elementary or secondary school when the net proceeds of the sales will be given or contributed to the school or to a nonprofit charitable organization, one of whose purposes is to serve as a conduit through which the net proceeds will flow to the school. For purposes of this exemption, the term "school" is an entity regulated under Chapter 115C of the General Statutes. Repealed by Session Laws 2013-316, s. 3.2(a), effective January 1, 2014, and applicable to sales made on or after that date. Repealed by Session Laws 2013-316, s. 3.4(a), effective July 1, 2014, and applicable to purchases made on or after that date. Repealed by Session Laws 2013-316, s. 3.2(a), effective January 1, 2014, and applicable to sales made on or after that date. Repealed by Session Laws 2005-435, s. 30, effective September 27, 2005. Repealed by Session Laws 1995 (Regular Session, 1996), c. 646, s. 5. Repealed by Session Laws 2014-3, s. 8.3(a), effective October 1, 2014, and applicable to sales made on or after that date. Sales of meals not for profit to elderly and incapacitated persons by charitable or religious organizations not operated for profit which are entitled to the refunds provided by G.S. 105-164.14(b), when such meals are delivered to the purchasers at their places of abode. Food and prepared food sold by a church or religious organization not operated for profit when the proceeds of the sales are actually used for religious activities. Repealed by Session Laws 1996, Second Extra Session, c. 14, s. 16. Sales of motor vehicles, the sale of a motor vehicle body to be mounted on a motor vehicle chassis when a certificate of title has not been issued for the chassis, and the sale of a motor vehicle body mounted on a motor vehicle chassis that temporarily enters the State so the manufacturer of the body can mount the body on the chassis. For purposes of this subdivision, a park model RV, as defined in G.S. 105-187.1, is a motor vehicle. Tangible personal property purchased solely for the purpose of export to a foreign country for exclusive use or consumption in that or some other foreign country, either in the direct performance or rendition of professional or commercial services, or in the direct conduct or operation of a trade or business, all of which purposes are actually consummated, or purchased by the government of a foreign country for export which purpose is actually consummated. "Export" shall include the acts of possessing and marshalling such property, by either the seller or the purchaser, for transportation to a foreign country, but shall not include devoting such property to any other use in North Carolina or the United States. "Foreign country" shall not include any territory or possession of the United States. Tangible personal property sold by a retailer to a purchaser inside or outside this State, when the property is delivered by the retailer in this State to a common carrier or to the United States Postal Service for delivery to the purchaser or the purchaser's designees outside this State and the purchaser does not subsequently use the property in this State. This exemption includes printed material sold by a retailer to a purchaser inside or outside this State when the printed material is delivered directly to a mailing house, to a common carrier, or to the United States Postal Service for delivery to a mailing house in this State that will preaddress and presort the material and deliver it to a common carrier or to the United States Postal Service for delivery to recipients outside this State designated by the purchaser. Repealed by Session Laws 2016-5, s. 3.9(a), effective January 1, 2017, and applicable to sales made on or after that date. Sales by a nonprofit civic, charitable, educational, scientific, literary, or fraternal organization when all of the conditions listed in this subdivision are met. This exemption does not apply to gross receipts derived from an admission charge to an entertainment activity. The sales are conducted only upon an annual basis for the purpose of raising funds for the organization's activities. The proceeds of the sale are actually used for the organization's activities. The products sold are delivered to the purchaser within 60 days after the first solicitation of any sale made during the organization's annual sales period. Advertising supplements and any other printed matter ultimately to be distributed with or as part of a newspaper. Repealed by Session Laws 2001-424, s. 34.23(a), effective December 1, 2001, and applicable to sales made on or after that date. Food and other products lawfully purchased under the Supplemental Nutrition Assistance Program, 7 U.S.C. § 2011, and supplemental foods lawfully purchased with a food instrument issued under the Special Supplemental Nutrition Program, 42 U.S.C. § 1786, and supplemental foods purchased for direct distribution by the Special Supplemental Nutrition Program. Sales of paper, ink, and other tangible personal property to commercial printers and commercial publishers for use as ingredients or component parts of free distribution periodicals and sales by printers of free distribution periodicals to the publishers of these periodicals. As used in this subdivision, the term "free distribution periodical" means a publication that is continuously published on a periodic basis monthly or more frequently, is provided without charge to the recipient, and is distributed in any manner other than by mail. Sales to the Department of Transportation. Sales of mobile classrooms to local boards of education or to local boards of trustees of community colleges. Tangible personal property that is purchased by a retailer for resale or is manufactured or purchased by a wholesale merchant for resale and then withdrawn from inventory and donated by the retailer or wholesale merchant to either a governmental entity or a nonprofit organization, contributions to which are deductible as charitable contributions for federal income tax purposes. Custom computer software. Custom computer software and the portion of prewritten computer software that is modified or enhanced if the modification or enhancement is designed and developed to the specifications of a specific purchaser and the charges for the modification or enhancement are separately stated on the invoice or similar billing document given to the purchaser at the time of the sale. Computer software that meets any of the following descriptions: It is purchased to run on an enterprise server operating system. The exemption includes a purchase or license of computer software for high-volume, simultaneous use on multiple computers that is housed or maintained on an enterprise server or end users' computers. The exemption includes software designed to run a computer system, an operating program, or application software. It is sold to a person who operates a datacenter and is used within the datacenter. It is sold to a person who provides cable service, telecommunications service, or video programming and is used to provide ancillary service, cable service, Internet access service, telecommunications service, or video programming. Computer software or certain digital property that becomes a component part of other computer software or certain digital property that is offered for sale or of a service that is offered for sale. Repealed by Session Laws 2013-316, s. 4.1(d), effective July 1, 2014, and applicable to gross receipts billed on or after that date. Sales of aircraft lubricants, aircraft repair parts, and aircraft accessories to an interstate passenger air carrier for use at its hub. Sales to an interstate air business of tangible personal property that becomes a component part of or is dispensed as a lubricant into commercial aircraft during its maintenance, repair, or overhaul. For the purpose of this subdivision, commercial aircraft includes only aircraft that has a certified maximum take-off weight of more than 12,500 pounds and is regularly used to carry for compensation passengers, commercial freight, or individually addressed letters and packages. Sales of the following items to an interstate air courier for use at its hub: Aircraft lubricants, aircraft repair parts, and aircraft accessories. Materials handling equipment, racking systems, and related parts and accessories for the storage or handling and movement of tangible personal property at an airport or in a warehouse or distribution facility. Sales of aircraft simulators to a company for flight crew training and maintenance training. Parts and accessories for use in the repair or maintenance of a qualified aircraft or a qualified jet engine. Sales of electricity by a municipality whose only wholesale supplier of electric power is a federal agency and who is required by a contract with that federal agency to make payments in lieu of taxes. An amount charged as a deposit on a beverage container that is returnable to the vendor for reuse when the amount is refundable or creditable to the vendee, whether or not the deposit is separately charged. An amount charged as a deposit on an aeronautic, automotive, industrial, marine, or farm replacement part that is returnable to the vendor for rebuilding or remanufacturing when the amount is refundable or creditable to the vendee, whether or not the deposit is separately charged. This exemption does not include tires or batteries. Repealed by Session Laws 2015-241, s. 32.18(d), effective March 1, 2016, and applicable to sales occurring on or after March 1, 2016, and to gross receipts derived from repair, maintenance, and installation services provided on or after March 1, 2016. Delivery charges for delivery of direct mail if the charges are separately stated on an invoice or similar billing document given to the purchaser at the time of sale. Fifty percent (50%) of the sales price of tangible personal property sold through a coin-operated vending machine, other than tobacco and newspapers. Water delivered by or through main lines or pipes for either commercial or domestic use or consumption. Items subject to sales and use tax under G.S. 105-164.4, other than electricity, telecommunications service, and ancillary service as defined in G.S. 105-164.3, if all of the following conditions are met: The items are purchased by a State agency for its own use and in accordance with G.S. 105-164.29A. The items are purchased pursuant to a valid purchase order issued by the State agency that contains the exemption number of the agency and a description of the property purchased, or the items purchased are paid for with a State-issued check, electronic deposit, credit card, procurement card, or credit account of the State agency. For all purchases other than by an agency-issued purchase order, the agency must provide to or have on file with the retailer the agency's exemption number. Sales to a professional land surveyor of tangible personal property on which custom aerial survey data is stored in digital form or is depicted in graphic form. Data is custom if it was created to the specifications of the professional land surveyor purchasing the property. A professional land surveyor is a person licensed as a surveyor under Chapter 89C of the General Statutes. The following telecommunications services and charges: Telecommunications service that is a component part of or is integrated into a telecommunications service that is resold. This exemption does not apply to service purchased by a pay telephone provider who uses the service to provide pay telephone service. Examples of services that are resold include carrier charges for access to an intrastate or interstate interexchange network, interconnection charges paid by a provider of mobile telecommunications service, and charges for the sale of unbundled network elements. An unbundled network element is a network element, as defined in 47 U.S.C. § 153(29), to which access is provided on an unbundled basis pursuant to 47 U.S.C. § 251(c)(3). Pay telephone service. 911 charges imposed under G.S. 143B-1403 and remitted to the 911 Fund under that section. Charges for telecommunications service made by a hotel, motel, or another entity whose gross receipts are taxable under G.S. 105-164.4(a)(3) when the charges are incidental to the occupancy of the entity's accommodations. Telecommunications service purchased or provided by a State agency or a unit of local government for the State Network or another data network owned or leased by the State or unit of local government. Sales of electricity for use at an eligible Internet datacenter and eligible business property to be located and used at an eligible Internet datacenter. As used in this subdivision, "eligible business property" is property that is capitalized for tax purposes under the Code and is used either: For the provision of a service included in the business of the primary user of the datacenter, including equipment cooling systems for managing the performance of the property. For the generation, transformation, transmission, distribution, or management of electricity, including exterior substations and other business personal property used for these purposes. To provide related computer engineering or computer science research. Sales of electricity for use at a qualifying datacenter and datacenter support equipment to be located and used at the qualifying datacenter. As used in this subdivision, "datacenter support equipment" is property that is capitalized for tax purposes under the Code and is used for one of the following purposes: The provision of a service or function included in the business of an owner, user, or tenant of the datacenter. The generation, transformation, transmission, distribution, or management of electricity, including exterior substations, generators, transformers, unit substations, uninterruptible power supply systems, batteries, power distribution units, remote power panels, and other capital equipment used for these purposes. HVAC and mechanical systems, including chillers, cooling towers, air handlers, pumps, and other capital equipment used for these purposes. Hardware and software for distributed and mainframe computers and servers, data storage devices, network connectivity equipment, and peripheral components and equipment. To provide related computer engineering or computer science research. Sales to the owner or lessee of an eligible railroad intermodal facility of intermodal cranes, intermodal hostler trucks, and railroad locomotives that reside on the premises of the facility and are used at the facility. Fuel, electricity, and piped natural gas sold to a manufacturer for use in connection with the operation of a manufacturing facility. The exemption does not apply to the following: Electricity used at a facility at which the primary activity is not manufacturing. Fuel or piped natural gas that is used solely for comfort heating at a manufacturing facility where there is no use of fuel or piped natural gas in a manufacturing process. Repealed by Session Laws 2017-57, s. 38.8(c), as amended by Session Laws 2017-212, s. 7.2(a), effective July 1, 2018, and applicable to sales made on or after that date. Tangible personal property purchased with a client assistance debit card issued for disaster assistance relief by a State agency or a federal agency or instrumentality. Interior design services provided in conjunction with the sale of tangible personal property. Gross receipts derived from an admission charge to an entertainment activity are exempt as provided in G.S. 105-164.4G. A motor vehicle service contract. The sales price of or the gross receipts derived from the repair, maintenance, and installation services and service contracts listed in this subdivision are exempt from tax. Except as otherwise provided in this subdivision, an item used to fulfill either repair, maintenance, and installation services or service contracts exempt from tax under this subdivision is taxable. The list of repair, maintenance, and installation services and service contracts exempt from tax under this subdivision is as follows: A service and a service contract for an item exempt from tax under this Article, except as otherwise provided in this subdivision. Items used to fulfill a service or service contract exempt under this sub-subdivision are exempt from tax under this Article. This exemption does not apply to water for a pool, fish tank, or similar aquatic feature or to a motor vehicle, except as provided under subdivision (62a) of this section and fees under sub-subdivision b. of this subdivision. A motor vehicle emissions and safety inspection fee imposed pursuant to G.S. 20-183.7, provided the fee is separately stated on the invoice or other documentation provided to the purchaser at the time of the sale. A service performed for a person by a related member. Cleaning of real property, except where the service constitutes a part of the gross receipts derived from the rental of an accommodation subject to tax under G.S. 105-164.4 or for a pool, fish tank, or other similar aquatic feature. Examples of cleaning of real property include custodial services, window washing, mold remediation services, carpet cleaning, removal of debris from gutters, removal of dust and other pollutants from ductwork, and power washing other than for a pool. A service on roads, driveways, parking lots, and sidewalks. Removal of waste, trash, debris, grease, snow, and other similar tangible personal property from property, other than a motor vehicle. The exemption applies to a household or a commercial trash collection and removal service. The exemption applies to the removal of septage from property, including motor vehicles, but does not include removal of septage from portable toilets. The following inspections: An inspection performed where the results are included in a report for the sale or financing of real property. An inspection of the structural integrity of real property, provided the charge for the inspection is separately stated on the invoice or other documentation given to the purchaser at the time of the sale. An inspection to a system that is a capital improvement under G.S. 105-164.3(31)f., provided the inspection is to fulfill a safety requirement and provided the charge for the inspection is separately stated on the invoice or other documentation given to the purchaser at the time of the sale. Alteration and repair of clothing, except where the service constitutes a part of the gross receipts derived from the rental of clothing subject to tax under G.S. 105-164.4 or for alteration and repair of belts and shoes. Pest control service. For purposes of this exemption, the term "pest control service" means the application of pesticides to real property. Moving service. For purposes of this exemption, the term "moving service" means a service for hire to transport or relocate a person's existing belongings to or from any destination. Self-service vehicle wash or vacuum and limited-service vehicle wash. For purposes of this sub-subdivision, the following definitions apply: Limited-service vehicle wash. - The cleaning of a vehicle by mechanical means where the only activities performed by an employee include one or more of the following: (i) receiving payment for the transaction, (ii) guiding the vehicle into the entrance or exit of a conveyor, (iii) applying low-pressure spray of chemicals to the vehicle prior to the cleaning of the vehicle, or (iv) placing protective tape or covers on the vehicle prior to cleaning. The term does not include any activity whereby an employee physically touches the vehicle for the purpose of cleaning or restoring the vehicle, enters or cleans any part of the interior of the vehicle, or performs an activity on the vehicle other than one of those listed in this sub-sub-subdivision. Self-service vehicle wash or vacuum. - The cleaning of a vehicle by a customer without any cleaning or restoring activity performed by an employee. Services performed on a transmission, distribution, or other network asset on land owned by a service provider or on a right-of-way or an easement in favor of a service provider. This exemption does not apply to charges billed to a customer for repair, maintenance, and installation services or a contribution in aid of construction and are included in the gross receipts derived from items subject to the combined general rate under G.S. 105-164.4. The terms "service provider" and "governmental entity" have the same meaning as defined in G.S. 105-164.3(31)c. Any of the following: A qualified aircraft. A qualified jet engine. An aircraft with a gross take-off weight of more than 2,000 pounds. Funeral-related service, including a service for the burial of remains. This exemption does not apply to the sale of tangible personal property, such as caskets, headstones, and monuments. A service performed on an animal, such as hoof shoeing and microchipping a pet. A security or similar monitoring contract for real property. The exemption provided in this subdivision does not apply to charges for repair, maintenance, and installation services to repair security, alarm, and other similar monitoring systems for real property. A contract to provide a certified operator for a wastewater system. Items purchased for resale under an exemption certificate in accordance with G.S. 105-164.28 or under a direct pay certificate in accordance with G.S. 105-164.27A. Installation charges that are a part of the sales price of tangible personal property purchased by a real property contractor to fulfill a real property contract for an item that is installed or applied to real property, provided the installation charges are separately stated and identified as such on the invoice or other documentation given to the real property contractor at the time of the sale. The exemption also applies to installation charges by a retailer-contractor when performing installation services for a real property contract. The exemption includes any labor costs provided by the real property contractor, including employees' wages, or labor purchased from a third party that would otherwise be included in the definition of "purchase price." Installation charges that are a part of the sales price of or gross receipts derived from repair, maintenance, and installation services or installation charges only purchased by a real property contractor to fulfill a real property contract, provided the installation charges are separately stated and identified as such on the invoice or other documentation given to the real property contractor at the time of the sale. The exemption also applies to installation charges by a retailer-contractor when performing a real property contract. The exemption includes any labor costs provided by the real property contractor, including employees' wages, or labor purchased from a third party that would otherwise be included in the definition of "purchase price." An item, including repair, maintenance, and installation services, purchased or used to fulfill a service contract taxable under this Article if the purchaser of the contract is not charged for the item. This exemption does not apply to the purchase of tangible personal property or certain digital property used to fulfill a service contract for real property where the charge being covered would otherwise be subject to tax as a real property contract. For purposes of this exemption, the term "item" does not include a tool, equipment, supply, or similar tangible personal property that is not deemed to be a component or repair part of the tangible personal property, real property, or certain digital property for which a service contract is sold to a purchaser. A replacement item, a repair part, or repair, maintenance, and installation services to maintain or repair tangible personal property or a motor vehicle pursuant to a manufacturer's warranty or a dealer's warranty. For purposes of this subdivision, the following definitions apply: Dealer's warranty. - An explicit warranty the seller of an item extends to the purchaser of the item as part of the purchase price of the item. Manufacturer's warranty. - An explicit warranty the manufacturer of an item extends to the purchaser of the item as part of the purchase price of the item. The amount of repair, maintenance, and installation services for a boat, an aircraft, or a qualified jet engine for which the purchaser elects for the seller to collect and remit the tax due under G.S. 105-164.27A(a3). Food and prepared food to be provided to a person entitled to the food and prepared food under a prepaid meal plan subject to tax under G.S. 105-164.4(a)(12). This exemption applies to packaging including wrapping paper, labels, plastic bags, cartons, packages and containers, paper cups, napkins and drinking straws, and like articles that meet all of the following requirements: Used for packaging, shipment, or delivery of the food and prepared food. Constitute a part of the sale of the food and prepared food. Delivered with the food and prepared food. Fifty percent (50%) of the sales price of a modular home or a manufactured home, including all accessories attached when delivered to the purchaser. (Expires January 1, 2024) This subdivision expires January 1, 2024. Sales of the following to a professional motorsports racing team or a related member of a team for use in competition in a sanctioned race series: The sale, lease, or rental of an engine. The sales price of or gross receipts derived from a service contract on, or repair, maintenance, and installation services for, a transmission, an engine, rear-end gears, and any tangible personal property that is purchased, leased, or rented and that is exempt from tax under this subdivision or that is allowed a sales tax refund under G.S. 105-164.14A(a)(5). The gross receipts derived from an agreement to provide an engine to a professional motorsports racing team or related member of a team for use in competition in a sanctioned race series, where such agreement does not meet the definition of a "service contract" as defined in G.S. 105-164.3 but may meet the definition of the term "lease or rental" as defined in G.S. 105-164.3. (Expires January 1, 2024) An engine or a part to build or rebuild an engine for the purpose of providing an engine under an agreement to a professional motorsports racing team or a related member of a team for use in competition in a sanctioned race series. This subdivision expires January 1, 2024. Storage of a motor vehicle, provided the charge is separately stated on the invoice or other documentation provided to the purchaser at the time of the sale. Towing services, provided the charge is separately stated on the invoice or other documentation provided to the purchaser at the time of the sale. Sales of wastewater dispersal products approved by the Department of Health and Human Services under Article 11 of Chapter 130A of the General Statutes. Sales of non-coin currency, investment metal bullion, and investment coins. For purposes of this subdivision, the following definitions apply: Investment coins. - Numismatic coins or other forms of money and legal tender manufactured of metal under the laws of the United States or any foreign nation with a fair market value greater than any statutory or nominal value of such coins. Investment metal bullion. - Any elementary precious metal that has been put through a process of smelting or refining and that is in such state or condition that its value depends upon its content and not upon its form. The term does not include fabricated precious metal that has been processed or manufactured for one or more specific and customary industrial, professional, or artistic uses. Non-coin currency. - Forms of money and legal tender manufactured of a material other than metal under the laws of the United States or any foreign nation with a fair market value greater than any statutory or nominal value of such currency. Gross receipts derived from a rental of an accommodation are exempt as provided in G.S. 105-164.4F. Sales of items to the North Carolina Life and Health Insurance Guaranty Association. Sales of a digital audio work or a digital audiovisual work that is a qualifying education expense under G.S. 115C-595(a)(3) to the operator of a home school as defined in G.S. 115C-563. Sales of a digital audio work or digital audiovisual work that consists of nontaxable service content when the electronic transfer of the digital audio work or digital audiovisual work occurs contemporaneously with the provision of the nontaxable service in real time. Industrial Group. If the level of investment or employment required by G.S. 105-164.3(119) b. is not timely made, achieved, or maintained, then the exemption provided under this subdivision is forfeited. If the exemption is forfeited due to a failure to timely make the required investment or to timely achieve the minimum required employment level, then the exemption provided under this subdivision is forfeited on all purchases. If the exemption is forfeited due to a failure to maintain the minimum required employment level once that level has been achieved, then the exemption provided under this subdivision is forfeited for those purchases occurring on or after the date the taxpayer fails to maintain the minimum required employment level. A taxpayer that forfeits an exemption under this subdivision is liable for all past sales and use taxes avoided as a result of the forfeiture, computed at the applicable State and local rates from the date the taxes would otherwise have been due, plus interest at the rate established under G.S. 105-241.21 . Interest is computed from the date the sales or use tax would otherwise have been due. The past taxes and interest are due 30 days after the date of forfeiture. A taxpayer that fails to pay the past taxes and interest by the due date is subject to the provisions of G.S. 105-236 . Motor Fuels Group. Printed Materials Group. Transactions Group. Exempt Status Group. Unclassified Group. In order to qualify for this exemption, an affidavit of export indicating compliance with the terms and conditions of this exemption, as prescribed by the Secretary of Revenue, must be submitted by the purchaser to the seller, and retained by the seller to evidence qualification for the exemption. If the purposes qualifying the property for exemption are not consummated, the purchaser shall be liable for the tax which was avoided by the execution of the aforesaid affidavit as well as for applicable penalties and interest and the affidavit shall contain express provision that the purchaser has recognized and assumed such liability. The principal purpose of this exemption is to encourage the flow of commerce through North Carolina ports that is now moving through out-of-state ports. However, it is not intended that property acquired for personal use or consumption by the purchaser, including gifts, shall be exempt hereunder. If the level of investment required by G.S. 105-164.3(79) d. is not timely made, then the exemption provided under this subdivision is forfeited. If the level of investment required by G.S. 105-164.3(79) d. is timely made but any specific eligible business property is not located and used at an eligible Internet datacenter, then the exemption provided for such eligible business property under this subdivision is forfeited. If the level of investment required by G.S. 105-164.3(79)d. is timely made but any portion of the electricity is not used at an eligible Internet datacenter, then the exemption provided for such electricity under this subdivision is forfeited. A taxpayer that forfeits an exemption under this subdivision is liable for all past taxes avoided as a result of the forfeited exemption, computed from the date the taxes would have been due if the exemption had not been allowed, plus interest at the rate established under G.S. 105-241.21 . If the forfeiture is triggered due to the lack of a timely investment required by G.S. 105-164.3(79)d., then interest is computed from the date the taxes would have been due if the exemption had not been allowed. For all other forfeitures, interest is computed from the time as of which the eligible business property or electricity was put to a disqualifying use. The past taxes and interest are due 30 days after the date the exemption is forfeited. A taxpayer that fails to pay the past taxes and interest by the due date is subject to the provisions of G.S. 105-236 . If the level of investment required by G.S. 105-164.3(201) is not timely made, the exemption provided under this subdivision is forfeited. If the level of investment required by G.S. 105-164.3(201) is timely made but any specific datacenter support equipment is not located and used at the qualifying datacenter, the exemption provided for such datacenter support equipment under this subdivision is forfeited. If the level of investment required by G.S. 105-164.3(201) is timely made but any portion of electricity is not used at the qualifying datacenter, the exemption provided for such electricity under this subdivision is forfeited. A taxpayer that forfeits an exemption under this subdivision is liable for all past taxes avoided as a result of the forfeited exemption, computed from the date the taxes would have been due if the exemption had not been allowed, plus interest at the rate established under G.S. 105-241.21 . If the forfeiture is triggered due to the lack of a timely investment required by G.S. 105-164.3(201), interest is computed from the date the taxes would have been due if the exemption had not been allowed. For all other forfeitures, interest is computed from the time as of which the datacenter support equipment or electricity was put to a disqualifying use. The past taxes and interest are due 30 days after the date the exemption is forfeited. A taxpayer that fails to pay the past taxes and interest by the due date is subject to the provisions of G.S. 105-236 . History (1957, c. 1340, s. 5; 1959, c. 670; c. 1259, s. 5; 1961, c. 826, s. 2; cc. 1103, 1163; 1963, c. 1169, ss. 7-9; 1965, c. 1041; 1967, c. 756; 1969, c. 907; 1971, c. 990; 1973, c. 476, s. 143; c. 708, s. 1; cc. 1064, 1076; c. 1287, s. 8; 1975, 2nd Sess., c. 982; 1977, c. 771, s. 4; 1977, 2nd Sess., c. 1219, s. 43.6; 1979, c. 46, ss. 1, 2; c. 156, s. 1; c. 201; c. 625, ss. 1, 2; c. 801, ss. 74, 75; 1979, 2nd Sess., c. 1099, s. 1; 1981, cc. 14, 207, 982; 1983, c. 156; c. 570, s. 21; c. 713, ss. 91, 92; c. 873; c. 887; 1983 (Reg. Sess., 1984), c. 1071, s. 1; 1985, c. 114, s. 4; c. 555; c. 656, ss. 24, 25; 1985 (Reg. Sess., 1986), c. 953; c. 973; c. 982, s. 2; 1987, c. 800, s. 1; 1987 (Reg. Sess., 1988), c. 937; 1989, c. 692, ss. 3.5, 3.6; c. 748, s. 1; 1989 (Reg. Sess., 1990), c. 989; c. 1060; c. 1068, ss. 1, 2; 1991, c. 45, s. 17; c. 79, s. 2; c. 618, s. 1; c. 689, s. 314; 1991 (Reg. Sess., 1992), c. 931, ss. 1, 2; c. 935, s. 1; c. 940, s. 1; c. 949, s. 1; c. 1007, s. 44; 1993, c. 484, s. 3; c. 513, s. 11; 1993 (Reg. Sess., 1994), c. 739, s. 1; 1995, c. 390, s. 14; c. 451, s. 1; c. 477, ss. 2, 3; 1995 (Reg. Sess., 1996), c. 646, ss. 4, 5; c. 649, s. 1; 1996, 2nd Ex. Sess., c. 14, ss. 15, 16; 1997-369, s. 2; 1997-370, s. 2; 1997-397, s. 1; 1997-423, s. 3; 1997-443, s. 11A.118(a); 1997-456, s. 27; 1997-506, s. 36; 1997-521, s. 1; 1998-22, s. 6; 1998-55, ss. 9, 15; 1998-98, ss. 14, 14.1, 49, 107; 1998-146, s. 9; 1998-171, s. 10(a), (b); 1998-225, s. 4.3; 1999-337, s. 31; 1999-360, s. 7(a)-(c); 1999-438, ss. 5-12; 2000-120, s. 5; 2000-153, s. 5; 2001-347, s. 2.12; 2001-424, s. 34.23(a); 2001-476, s. 17(e); 2001-509, s. 1; 2001-514, s. 1; 2002-184, s. 9; 2003-284, ss. 45.5, 45.5A; 2003-349, s. 11; 2003-416, ss. 18(a), 21; 2003-431, s. 1; 2004-124, ss. 32B.2, 32B.4; 2005-276, s. 33.9; 2005-435, ss. 30, 31; 2006-19, s. 1; 2006-33, s. 5; 2006-66, s. 24.17(b); 2006-162, ss. 8(a), 8(b); 2006-168, s. 4.2; 2006-252, s. 2.25(b); 2007-244, s. 4; 2007-323, s. 31.23(c); 2007-368, s. 1; 2007-383, s. 6; 2007-397, ss. 10(g), 10(h); 2007-491, s. 44(1)a; 2007-500, s. 1; 2007-527, ss. 10, 27; 2008-107, ss. 28.6(a), 28.20(a); 2009-451, s. 27A.3(f), (k); 2009-511, s. 1; 2010-91, s. 3; 2010-147, s. 6.1; 2011-330, s. 18; 2012-79, s. 1.4; 2013-316, ss. 3.2(a), (b), 3.3(b), 3.4(a), 4.1(d), 5(c), 6(c); 2013-360, s. 7.4(e); 2013-414, ss. 11(a), 58(e); 2014-3, ss. 4.1(e), 5.1(d)-(f), 6.1(c), (f), 8.3(a), (b); 2014-100, s. 37.3(a); 2015-6, ss. 2.12, 2.23(a); 2015-241, ss. 7A.3, 32.18(d), (e); 2015-259, ss. 3(b), 4.1(c), 4.2(d), 5(b), (c), 6(b); 2015-261, s. 5(a), (b); 2016-5, ss. 3.9(a), (b), 3.11(a), 3.19(b), 3.23(a); 2016-92, ss. 2.1(a), 2.5; 2016-94, ss. 38.2(c), 38.5(i), (p); 2016-123, s. 11.1; 2017-57, s. 38.8(a), (c), 38.9(b); 2017-102, s. 15.1; 2017-139, s. 1; 2017-181, s. 1; 2017-204, ss. 2.6, 2.9(a), 2.11(b), 2.12(a); 2017-212, s. 7.2(a); 2018-5, s. 38.5(j), (y); 2019-6, ss. 4.9, 5.1, 5.3; 2019-169, ss. 3.3(k), 3.4(c), 3.9(a), (b), 3.10, 3.11(a), 3.12, 3.13(b); 2019-237, ss. 4(a), 5(a), 8.1(a); 2019-246, ss. 6, 7(a); 2020-6, ss. 2(a), 3(b).) Editor's Note. - Subdivisions (39)(1) through (39)(4) were redesignated as subdivisions (39)a. to (39)d. pursuant to Session Laws 1997-456, s. 27, which authorized the Revisor of Statutes to renumber or reletter sections and parts of sections having a number or letter designation that is incompatible with the General Assembly's computer database. Session Laws 1998-22, s. 6 and Session Laws 1998-55, s. 9 each added a subdivision (44). The subdivision (44) added by Session Laws 1998-55, s. 9 was to go into effect on January 1, 2001; it was redesignated as subdivision (45) at the direction of the Revisor of Statutes. This subdivision was subsequently repealed by Session Laws 1999-360, s. 7(a), effective retroactively to May 1, 1999, and hence never went into effect. The present subdivision (45) was added by Session Laws, 1999-360, s. 7(b), effective respectively as of May 1, 1999. Session Laws 2001-347, s. 2.12, added subdivisions (5a), (47), (48), (49) and (50). See editor's note for effective dates. Session Laws 2001-347, s. 3.2, makes subdivision (5a) effective January 1, 2006, and subdivisions (47) through (50) effective January 1, 2002. Session Laws 2003-284, s. 45.1, provides: "The Streamlined Sales and Use Tax Agreement is an historic multistate agreement designed to simplify and modernize sales and use tax collection and administration. The states and businesses involved in the Streamlined Sales Tax Project recognize that a simplified and uniform system saves businesses compliance and audit costs, while also saving states administrative costs and improving voluntary compliance, which should increase state collections. To participate in the Agreement, North Carolina must amend or modify some of its sales and use tax law to conform to the simplifications and uniformity in the Agreement. This part [Part XLV of Session Laws 2003-284] makes those necessary changes." Session Laws 2003-284, s. 45.12, provides that the amendments to subdivisions (12), (13), and (43), and the additions of subdivisions (43A) and (51) by s. 45.5 are effective July 15, 2003, and the amendment to subdivision (50) by s. 45.5A is effective January 1, 2004. Session Laws 2003-284, s. 48.1, provides: "Parts 32 through 47 of this act do not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by those parts before the effective date of its amendment or repeal; nor do they 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." Session Laws 2003-284, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2003'." Session Laws 2003-284, s. 49.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2003-2005 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2003-2005 fiscal biennium." Session Laws 2003-284, s. 49.5 is a severability clause. Session Laws 2006-19, s. 3, provides: "This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended by this act before the effective date of this act, nor does it affect the right to any refund of a tax that accrued under the amended statute before the effective date of its amendment." Session Laws 2007-323, s. 31.23(c), and Session Laws 2007-397, s. 10(h), each added a new subdivision (56). The subdivision added by Session Laws 2007-397 has been renumbered as subdivision (57) at the direction of the Revisor of Statutes. Session Laws 2007-323, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2007'." Session Laws 2007-323, s. 32.5 is a severability clause. Session Laws 2007-397, s. 15 is a severability clause. Session Laws 2007-491, s. 47, provides: "G.S. 105-241.10, as enacted by Section 1 of this act, and Sections 6, 15, 16, 17, and 22 are effective for taxable years beginning on or after January 1, 2007. Section 14 is effective for taxable years beginning on or after January 1, 2008. Sections 45, 46, and 47 are effective when they become law. The remainder of this act becomes effective January 1, 2008. The procedures for review of disputed tax matters enacted by this act apply to assessments of tax that are not final as of the effective date of this act and to claims for refund pending on or filed on or after the effective date of this act. This act does not affect matters for which a petition for review was filed with the Tax Review Board under G.S. 105-241.2 before the effective date of this act. The repeal of G.S. 105-122(c) and G.S. 105-130.4(t) and Sections 11 and 12 apply to requests for alternative apportionment formulas filed on or after the effective date of this act. A petition filed with the Tax Review Board for an apportionment formula before the effective date of this act is considered a request under G.S. 105-122(c1) or G.S. 105-130.4(t1) , as appropriate." Session Laws 2007-525, s. 14, provides: "The Revenue Laws Study Committee may study whether to continue the sales tax exemption for nutritional supplements sold by a chiropractic physician at a chiropractic office to a patient as part of the patient's plan of treatment." Session Laws 2008-107, s. 28.6(b), provides, in part, that the amendment to this section by s. 28.6(a), is applicable to purchases made on or after August 1, 2008. Session Laws 2008-107, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2008'." Session Laws 2008-107, s. 30.5 is a severability clause. Session Laws 2010-147, s. 6.1, which added subdivision (4g), was applicable to sales made on or after July 1, 2009. Session Laws 2015-6, s. 2.23(c), provides: "Notwithstanding G.S. 105-164.13(62) , as amended by S.L. 2014-3 and by subsection (a) of this section, the sales and use tax exemption in G.S. 105-164.13(62) applies to an item used pursuant to a service contract that meets the definition of a "service contract" as defined in G.S. 105-164.3 (38b), notwithstanding that the service contract was sold before January 1, 2014, and effective on, before, or after January 1, 2014." Session Laws 2015-241, s. 7A.3, provides in part: "The Revisor of Statutes may conform names and titles changed by this section and may correct statutory references as required by this section throughout the General Statutes. In making the changes authorized by this section, the Revisor may also adjust subject and verb agreement and the placement of conjunctions." Pursuant to this authority, "G.S. 143B-1403" was substituted for "G.S. 62A-43" in subdivision (54)c at the direction of the Revisor of Statutes. Session Laws 2015-241, s. 32.18(h), made the repeal of subdivision (49) of this section by Session Laws 2015-241, s. 32.18(d), applicable to sales occurring on or after March 1, 2016 and to gross receipts derived from repair, maintenance, and installation services provided on or after March 1, 2016. Session Laws 2015-241, s. 32.18(h), made the amendment to this section by Session Laws 2015-241, s. 32.18(e), applicable to sales occurring on or after March 1, 2016 and to gross receipts derived from repair, maintenance, and installation services provided on or after March 1, 2016. Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2015-259, s. 4.1(f), provides: "Subsections (a) through (d) of this section become effective January 1, 2016, and apply to sales made on or after that date. The remainder of this section is effective when this act becomes law." Session Laws 2015-259, s. 4.2(g), provides: "This Part becomes effective October 1, 2015, and applies to sales made on or after that date." Session Laws 2015-259, s. 5(f), provides: "This section becomes effective March 1, 2016, and applies to service contracts purchased on or after date, if House Bill 97 of the 2015 Regular Session of the General Assembly is enacted." House Bill 97 was enacted as Session Laws 2015-241. The amendment by Session Laws 2015-261, s. 5(a) was contingent on enactment of House Bill 117, 2015 Regular Session of the General Assembly. House Bill 117 was enacted as Session Laws 2015-259. Session Laws 2016-5, s. 3.9(c), made the repeal of subdivision (34) by Session Laws 2016-5, s. 3.9(a), applicable to sales made on or after January 1, 2017. Session Laws 2016-5, s. 3.9(c), made subdivision (26b), as added by Session Laws 2016-5, s. 3.9(b), applicable to sales made on or after January 1, 2017. Session Laws 2016-94, s. 38.2(f), as amended by Session Laws 2016-123, s. 11.1, made subdivision (57a), as added by Session Laws 2016-94, s. 38.2(c), applicable to purchases made on or after July 1, 2016. Session Laws 2016-94, s. 38.5(a), provides: "A retailer is not liable for an undercollection of sales or use tax as a result of the changes made under Section 32.18 of S.L. 2015-241 and under Part V of S.L. 2015-259 if the retailer made a good-faith effort to comply with the law and collect the proper amount of tax. This applies only to the period beginning March 1, 2016, and ending December 31, 2016." Session Laws 2016-94, s. 38.5( l ), provides: "The Department of Revenue must issue written guidance on the implementation of the sales tax changes imposed by this act by November 15, 2016." Session Laws 2016-94, s. 38.5(q) made the amendments to this section by Session Laws 2016-94, s. 38.5(i), applicable to sales made on or after January 1, 2017. Session Laws 2016-94, s. 38.5(q) made subdivision (68), as added by Session Laws 2016-94, s. 38.5(p), applicable to sales made on or after October 1, 2016. Session Laws 2016-94, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2016.'" Session Laws 2016-94, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2016-2017 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2016-2017 fiscal year." Session Laws 2016-94, s. 39.7, is a severability clause. Session Laws 2017-57, s. 38.8(e), provides: "Sales of mill machinery to manufacturers and certain industrial processors have historically enjoyed preferential tax treatment, whether in the form of a reduced wholesale tax, a preferential rate of sales and use tax, or a one-percent (1%) privilege tax with an eighty-dollar ($80.00) cap per article. Despite the nature of the tax, the operational language has remained virtually unchanged for over 60 years and lacks clear guidance with regard to its application. Specifically, Article 5F of Chapter 105 of the General Statutes, and its predecessors, did not define 'manufacturing industry or plant' or 'mill machinery.' This lack of guidance has resulted in a substantial body of administrative interpretation being developed over the years by the Department of Revenue. These interpretations are not included in the statutes and may not necessarily comport with the traditional definition of manufacturing, but they may be consistent with the General Assembly's intent to provide preferential tax treatment to certain industrial equipment. "This act repeals the one-percent (1%) privilege tax on mill machinery and mill machinery parts and accessories and substitutes a sales and use tax exemption for the items. However, the General Assembly recognizes that, once this transition has occurred, efforts need to be made to provide more guidance and specificity to taxpayers and the Department of Revenue with respect to the treatment of manufacturing and industrial processing equipment. Therefore, the Revenue Laws Study Committee is directed to study ways in which to clarify the scope of the sales and use tax exemption for mill machinery, as enacted by this act, by modernizing and further defining the statutory language and by incorporating existing administrative interpretations of the Department of Revenue, to the extent the General Assembly desires to maintain those interpretations. "The Committee may report its findings, together with any recommended legislation, to the 2018 Regular Session of the 2017 General Assembly upon its convening. The study may include an examination of the following: "(1) The criteria that had to be met under prior law to qualify for the preferential rate under Article 5F of Chapter 105 of the General Statutes and whether that criteria should be incorporated into or otherwise clarified in the corresponding sales and use tax exemption, as enacted by this act, including the following: "a. What constitutes an eligible manufacturer or industrial processor. "b. The extent to which a business's activities must consist of manufacturing or processing items for sale in order for the sales and use tax exemption, as enacted by this act, to apply. "c. The types of activities that qualify as manufacturing or industrial processing. "d. The types of machinery, parts, accessories, and other supplies that are eligible for the exemption and the degree to which they must be used in that process to qualify. "(2) A review of the Department's administrative interpretations of the mill machinery statute, in all its forms, and whether and how to incorporate those interpretations into the statutes. "(3) Terminology used by surrounding states in their statutory provisions that provide a sales and use tax exemption for manufacturing equipment. "(4) Any other issues the Committee deems relevant." Session Laws 2017-57 s. 38.8(f), made the repeal of subdivisions (5a) and (57a) by Session Laws 2017-57, s. 38.8(a), as amended by Session Laws 2017-212, s. 7.2(a), effective July 1, 2018, and applicable to sales made on or after that date. Session Laws 2017-57 s. 38.8(f), made subdivisions (5e) through (5n), as added by Session Laws 2017-57, s. 38.8(c), effective July 1, 2018, and applicable to sales made on or after that date. Session Laws 2017-57, s. 38.9(c), made subdivision (5o), as added by Session Laws 2017-57, s. 38.9(b), effective July 1, 2017, and applicable to sales made on or after that date. Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2017-2019 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2017-2019 fiscal biennium." Session Laws 2017-57, s. 39.6, is a severability clause. Session Laws 2017-139, s. 4, made the rewriting of subdivision (68) of this section by Session Laws 2017-139, s. 1, effective July 1, 2017, and applicable to sales made on or after that date, and further provided: "As soon as practicable after this act becomes law, but no later than 30 days after that date, the Department of Health and Human Services shall notify the Department of Revenue of all existing wastewater dispersal product approvals." Session Laws 2017-181, s. 2 made subdivision (69) as added by Session Laws 2017-181, s. 1, effective July 1, 2017, and applicable to sales made on or after that date. Subdivision (1) as added by Session Laws 2017-204, s. 2.9(a), was renumbered as subdivision (2b) at the direction of the Revisor of Statutes. Session Laws 2017-204, s. 2.12(b) made subdivision (61a)m., as amended by Session Laws 2017-204, s. 2.12(a), effective July 1, 2019, and applicable to sales made on or after that date. 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, 38.5(aa), as amended by Session Laws 2019-6, s. 5.1, provides: "G.S. 105-164.13(5e), as enacted by Section 38.8(c) of S.L. 2017-57 and amended by subsection (j) of this section, is effective July 1, 2018." 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. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2019-169, s. 3.1(c), provides, in part, that: "The Revisor of Statutes is authorized to renumber the subdivisions of G.S. 105-164.3 to ensure that the subdivisions are listed in alphabetical order and in a manner that reduces the current use of alphanumeric designations, to make conforming changes, and to reserve sufficient space to accommodate future additions to the statutory section." At the direction of the Revisor of Statutes, references were conformed in subdivisions (5), (5o), (55), (55a), and (61c). Session Laws 2019-169, s. 3.9(a), (b), as amended by Session Laws 2019-246, s. 7(a), repealed Session Laws 2018-5, s. 38.5(y), which had added subdivision (61a)r., effective January 1, 2020. Session Laws 2019-169, s. 3.11(b), made the amendments to subdivision (61a)k. by Session Laws 2019-169, s. 3.11(a), effective October 1, 2019, and applicable to sales made on or after that date. Session Laws 2019-169, s. 3.12(b), made subdivision (5p) as added by Session Laws 2019-169, s. 3.12(a), effective October 1, 2019, and applicable to sales made on or after that date. Session Laws 2019-169, s. 3.13(c), made subdivision (13d) of this section as added by Session Laws 2019-169, s. 3.13(b), effective October 1, 2019, and applicable to sales occurring on or after that date. Session Laws 2019-169, s. 3.1(c), provides, in part, that: "The Revisor of Statutes is authorized to renumber the subdivisions of G.S. 105-164.3 to ensure that the subdivisions are listed in alphabetical order and in a manner that reduces the current use of alphanumeric designations, to make conforming changes, and to reserve sufficient space to accommodate future additions to the statutory section." At the direction of the Revisor of Statutes, references were conformed in subdivisions (5), (5o), (55), (55a), and (61c). Session Laws 2019-237, s. 9, provides: "If any provision of this act and G.S. 143C-5-4 are in conflict, the provisions of this act shall prevail." Session Laws 2020-6, s. 2(b), provides: "Refund. - A large fulfillment facility is allowed a refund of all North Carolina State and local sales and use taxes paid by the large fulfillment facility, or paid by a contractor or subcontractor on the large fulfillment facility's behalf, for purchases of items eligible for exemption under G.S. 105-164.13 (5o), as amended by this section, if the purchase was made on or after April 1, 2020, but before July 1, 2020. A request for a refund under this section must be in writing and must include any information and documentation required by the Secretary. A request for a refund under this section must be made on or after July 1, 2020, and is due before October 1, 2020. A refund allowed under this section is not an overpayment of tax and does not accrue interest as provided in G.S. 105-241.21 ." Session Laws 2020-6, s. 2(c), made the amendments to subdivision (5o) by Session Laws 2020-6, s. 2(a), effective July 1, 2020, and applicable to sales occurring on or after that date. Session Laws 2020-6, s. 3(e), made subdivisions (72) and (73), as added by Session Laws 2020-6, s. 3(b), effective retroactively to October 1, 2019, and applicable to sales occurring on or after that date. Effect of Amendments. - Session Laws 2003-284, ss. 45.5 and 45.5A, rewrote subdivisions (12), (13), and (43); inserted subdivision (43a); in subdivision (50), deleted "closed container soft drinks and" following "other than"; and added subdivision (51). See Editor's note for effective dates. Session Laws 2003-349, s. 11, effective July 27, 2003, at the end of the first sentence in subdivision (15), deleted "provided, however, they must be added to gross sales if afterwards collected," and added the second and third sentences. Session Laws 2003-416, ss. 18(a) and 21, effective August 14, 2003, inserted "and services" following "personal property" in the introductory paragraph, and substituted "105-164.3(51)" for "105-164.3(23)" in the first sentence of subdivision (5). Session Laws 2003-431, s. 1, effective July 1, 2004, and applicable to sales made on or after that date, added subdivision (52). Session Laws 2004-124, ss. 32B.2 and 32B.4, inserted "plastic mulch, plant bed covers" in subdivision (1); reenacted and rewrote subdivision (39); added subdivisions (45a) and (49a); and added subdivision (53). See editor's note for effective dates. Session Laws 2005-276, s. 33.9, effective October 1, 2005, rewrote subdivision (1); added subdivision (1a); added sub-subdivision (2a)e.; in subdivision (4c), in the introductory language, inserted "items concerning the housing, raising, or feeding of animals"; rewrote subdivision (4d); added subdivision (4e); in subdivision (5a), substituted "Products" for "Mill machinery and mill machinery parts and accessories"; added subdivisions (5b) through (5d); rewrote subdivisions (10) and (10a); designated subdivision (10b) as sub-subdivision (10a)c.; deleted subdivision (18); rewrote subdivision (45) and added subdivision (45b). Session Laws 2005-435, ss. 30 and 31, effective January 1, 2006, deleted former subdivision (29), which read: "Sales to the North Carolina Museum of Art of paintings and other objects or works of art for public display, the purchases of which are financed in whole or in part by gifts or donations"; and inserted "continuously" preceding "published on a periodic basis" in the second sentence of subdivision (39). Session Laws 2006-19, s. 1, effective July 1, 2006, and applicable to items purchased on or after that date, added subdivision (4f). Session Laws 2006-33, s. 5, effective January 1, 2007, added subdivision (54). Session Laws 2006-66, s. 24.17(b), effective October 1, 2006, and applicable to sales made on or after that date, added new subdivision (55). Session Laws 2006-162, ss. 8(a) and (b), effective July 24, 2006, rewrote (1a) which read: "A container sold to a farmer, as defined in subdivision (1) of this section, used for a purpose set out in that subdivision or in packaging and transporting the farmer's product for sale"; and deleted former (4e) which read: "A grain, feed, or soybean storage facility, and parts and accessories attached to the facility." Session Laws 2006-168, s. 4.2, and Session Laws 2006-252, s. 2.25(b), effective October 1, 2006, and applicable to sales made on or after that date, substituted "such" for "the" twice in the last undesignated paragraph in the fourth sentence of the last paragraph of subdivision (55). Session Laws 2007-244, s. 4, effective October 1, 2007, rewrote subdivision (9). Session Laws 2007-323, s. 31.23(c), effective January 1, 2007, and applicable to sales made on or after January 1, 2007, added subdivision (56). Session Laws 2007-368, s. 1, effective October 1, 2007, and applicable to sales made on or after that date, added subdivision (27a). Session Laws 2007-383, s. 6, effective January 1, 2008, rewrote subdivision (54)c. Session Laws 2007-397, ss. 10(g), (h), effective July 1, 2010, and applicable to sales occurring on or after that date, rewrote sub-subdivision (1)d.; and added subdivision (1b) and the subdivision designated herein as subdivision (57). Session Laws 2007-491, s. 44(1)a., effective January 1, 2008, substituted "G.S. 105-241.21" for "G.S. 105-241.1(i)" in the fourth sentence of the last paragraph of subdivision (55). For applicability, see Editor's note. Session Laws 2007-500, s. 1, effective October 1, 2007, and applicable to sales made on or after that date, inserted "baler twine" following "potting soil" in subdivision (1)(a). Session Laws 2007-527, ss. 10, 27, effective August 31, 2007, in subsection (38), substituted "7 U.S.C. § 2011" for "7 U.S.C. § 51"; and in subsection (52), inserted "and ancillary service as defined in G.S. 105-164.4 "; and made minor stylistic changes. Session Laws 2008-107, ss. 28.6(a) and 28.20(a), effective August 1, 2008, added subdivisions (58) and (59). For applicability, see Editor's note. Session Laws 2009-451, s. 27A.3(f), effective January 1, 2010, and applicable to sales made on or after that date, in subdivision (5b), substituted "telecommunications" for "telephone" near the beginning; in subdivision (28), deleted "and sales of magazines by magazine vendors making door-to-door sales" from the end; rewrote subdivision (43a); and added subdivision (43b). Session Laws 2009-451, s. 27A.3(k), effective August 7, 2009, inserted "digital property" in the introductory language. Session Laws 2009-511, s. 1, effective October 1, 2009, and applicable to sales made on or after that date, rewrote subdivision (45) and added subdivision (45c). Session Laws 2010-91, s. 3, effective July 1, 2010, and applicable to sales made on or after that date, in the introductory and last paragraphs of subdivision (55), twice substituted "datacenter" for "data center"; and in sub-subdivision (55)a., substituted "provision of a service included in the business of the primary user of the datacenter" for "provision of Internet service or Web search portal services as contemplated by G.S. 105-164.3 (8e)a." Session Laws 2010-147, s. 6.1, effective July 1, 2009, and applicable to sales made on or after that date, added subdivision (4g). Session Laws 2011-330, s. 18, effective June 27, 2011, added "for human use" in subdivision (12)a.; substituted "Department of Health and Human Services" for "Department of Public Instruction" in subdivision (26a); inserted "by the retailer" in subdivision (33a); twice substituted "Nutrition Program" for "Food Program" in subdivision (38); and added "on the invoice at the time of sale" at the end of subdivision (49). Session Laws 2012-79, s. 1.4, effective June 26, 2012, in subdivision (11)a., substituted "taxed in Article 36C of this Chapter" for "defined in G.S. 105 449.60"; in subdivision (49), substituted "an invoice or similar billing document given to the purchaser" for "the invoice"; and, in subdivision (49a), substituted "purchaser at the time of sale" for "purchaser". Session Laws 2013-316, s. 3.2(a), (b), effective January 1, 2014, deleted subdivisions (13c), (27), and (28); and rewrote subdivision (26), which formerly read "Food sold not for profit by public or private school cafeterias within school buildings during the regular school day." For applicability, see editor's note. Session Laws 2013-316, s. 3.3(b), effective July 1, 2014, repealed subdivisions (1), (1a), (1b), (2a), (4a), (4c), and (4d). For applicability, see editor's note. Session Laws 2013-316, s. 3.4(a), effective July 1, 2014, repealed subdivision (27a). For applicability, see editor's note. Session Laws 2013-316, s. 4.1(d), effective July 1, 2014, repealed subdivision (44). For applicability, see editor's note. Session Laws 2013-316, ss. 5(c) and 6(c), effective January 1, 2014, added subdivisions (60) through (62). For applicability, see editor's note. Session Laws 2013-360, s. 7.4(e), effective July 1, 2013, in subdivision (54)e., inserted "or product" and substituted "State Network" for "North Carolina Information Highway." Session Laws 2013-414, s. 11(a), effective August 23, 2013, inserted "and prepared food" in subdivisions (26), (26a), and (31a); substituted "Prepared food and food" for "Meals and food products" in subdivision (27); in subdivision (33a), substituted "inside or outside" for "within or without," and added the second sentence; in subdivision (43a)a., substituted "purchased" for "designed," and added the second and third sentences; and added the second sentence in subdivision (57). Session Laws 2013-414, s. 58(e), effective January 1, 2014, added the second and third sentence in subdivision (60)e.; and added subdivision (61)c. For applicability, see editor's note. Session Laws 2014-3, s. 4.1(e), effective May 29, 2014, in subdivision (26), deleted "not for profit by a nonpublic or public school, including a charter school and a regional school" preceding "within the school" in the first sentence, and added the second sentence. See Editor's note for applicability. Session Laws 2014-3, s. 5.1(d), effective January 1, 2015, rewrote subdivision (60). See Editor's note for applicability. Session Laws 2014-3, s. 5.1(e), effective May 29, 2014, added the last sentence in subdivision (34); and, in subdivision (35), substituted "conditions listed in this subdivision are met." for "following conditions are met:" in the first sentence, and added the last sentence. See Editor's note for applicability. Session Laws 2014-3, s. 6.1(e), (f), effective October 1, 2014, rewrote subdivisions (61) and (62). See Editor's note for applicability. Session Laws 2014-3, s. 8.3(a), effective October 1, 2014, repealed subdivision (30). See Editor's note for applicability. Session Laws 2014-3, s. 8.3(b), effective October 1, 2014, added "and newspapers" at the end of subdivision (50). See Editor's note for applicability. Session Laws 2014-100, s. 37.3(a), added subdivision (64). See Editor's note for effective date and applicability. Session Laws 2015-6, s. 2.12, effective April 9, 2015, inserted "and piped natural gas" in subdivision (8a); in subdivision (10)c. substituted "Fuel and piped natural gas" for "Fuel, other than electricity" at the beginning, and added the second sentence; and substituted "Fuel, piped natural gas, and electricity" for "Fuel and electricity" in subdivision (57). Session Laws 2015-6, s. 2.23(a), effective October 1, 2014, in subdivision (62), inserted "taxable under this Article" in the first sentence and deleted the former second sentence which read: "This exemption does not apply to an item used to maintain or repair tangible personal property pursuant to a service contract exempt from tax under G.S. 105-164.4 I(b)." Session Laws 2015-241, s. 7A.3, effective September 18, 2015, substituted "G.S. 143B-1403" for "G.S. 62A-43" in subdivision (54)c. Session Laws 2015-241, s. 32.18(d), (e), effective March 1, 2016, deleted subdivision (49) and added subdivisions (61a) and (61b), and inserted "or repair, maintenance, and installation services" near the beginning of subdivision (62). For applicability, see editor's note. Session Laws 2015-259, s. 3(b), effective January 1, 2016, and applicable to sales made on or after that date, added subdivision (55a). Session Laws 2015-259, s. 4.1(c), added subdivision (11b). For effective date and applicability, see Editor's notes. Session Laws 2015-259, s. 4.2(d), added subdivision (45d). For effective date and applicability, see Editor's note. Session Laws 2015-259, s. 5(b), effective March 1, 2016, and applicable to service contracts purchased on or after date, added subdivision (62a). Session Laws 2015-259, s. 5(c), effective March 1, 2016, and applicable to service contracts purchased on or after date, in subdivision (61a), substituted "an item, other than a motor vehicle," for "an item" in the first sentence and added the last sentence; and in subdivision (62), in the first sentence, deleted "or a motor vehicle" following "personal property" and substituted "the item or services" for "the item", added the present second sentence, and deleted "or motor vehicle" following "personal property" in the last sentence. Session Laws 2015-259, s. 6(b), effective September 30, 2015, added subdivision (65). Session Laws 2015-261, s. 5(a), (b), effective September 30, 2015, rewrote subdivision (65) and added subdivision (65a). Session Laws 2016-5, s. 3.9(a), (b), effective January 1, 2017, added subdivision (26b), and deleted former subdivision (34), which read: "Sales of items by a nonprofit civic, charitable, educational, scientific or literary organization when the net proceeds of the sales will be given or contributed to the State of North Carolina or to one or more of its agencies or instrumentalities, or to one or more nonprofit charitable organizations, one of whose purposes is to serve as a conduit through which such net proceeds will flow to the State or to one or more of its agencies or instrumentalities. This exemption does not apply to gross receipts derived from an admission charge to an entertainment activity." See editor's notes for applicability. Session Laws 2016-5, s. 3.11(a), effective January 1, 2017, substituted "as defined in G.S. 105-164.3 " for "as defined in G.S. 105-164.4 " in the introductory language of subdivision (52); and rewrote subdivision (57). Session Laws 2016-5, s. 3.19(b), effective July 1, 2016, added the last sentence in subdivision (32). Session Laws 2016-5, s. 3.23(a), effective January 1, 2016, added the third sentence in subdivision (11b). Session Laws 2016-92, s. 2.1(a), effective January 1, 2016, made a stylistic change in subdivision (11b). Session Laws 2016-92, s. 2.5, effective July 11, 2016, rewrote subdivision (63). Session Laws 2016-94, s. 38.2(c), as amended by Session Laws 2016-123, s. 11.1, effective July 1, 2016, added subdivision (57a). See editor's note for applicability. Session Laws 2016-94, s. 38.5(i), effective January 1, 2017, deleted "for tangible personal property" following "A service contract" in subdivision (61); in subdivision (61a), added the last sentence and sub-subdivisions (61a)a. through l .; rewrote subdivisions (61b) and (62); and added subdivisions (61c), (61d), (66), and (67). See editors' note for applicability. Session Laws 2016-94, s. 38.5(p), effective October 1, 2016, added subdivision (68). See editor's note for applicability. Session Laws 2017-57, s. 38.8(a), as amended by Session Laws 2017-212, s. 7.2(a), repealed subdivisions (5a) and (57a). For effective date and applicability, see editor's note. Session Laws 2017-57, s. 38.8(c), added subdivisions (5e) through (5n). For effective date and applicability, see editor's note. Session Laws 2017-57, s. 38.9(b), added subdivision (5o). For effective date and applicability, see editor's note. Session Laws 2017-102, s. 15.1, effective July 12, 2017, substituted "section" for "subsection" in subdivision (11b). Session Laws 2017-139, s. 1, rewrote subdivision (68). For effective date and applicability, see editor's note. Session Laws 2017-181, s. 1, added subdivision (69). For effective date and applicability, see editor's note. Session Laws 2017-204, s. 2.6, rewrote subdivisions (61), (61a), and (65); added the last two sentences in subdivision (61c); and, in subdivision (62), substituted "purchased or used to fulfill" for "or used to maintain, monitor, inspect, or repair tangible personal property or digital property pursuant to" in the first sentence, inserted the present second sentence, and substituted "property, real property" for "property" in the last sentence. For effective date and applicability, see editor's note. Session Laws 2017-204, s. 2.9(a), effective August 11, 2017, added subdivision (1) and sub-subdivisions (12)e. and (12)f.; added "on the invoice or similar billing document given to the purchaser at the time of the sale" at the end of subdivision (43); and rewrote subdivision (57a). For redesignation of subdivision (1), see editor's note. Session Laws 2017-204, s. 2.11(b), effective August 11, 2017, added subdivision (62b). Session Laws 2017-204, s. 2.12(a), rewrote sub-subdivision (61)m. For effective date and applicability, see the editor's note. Session Laws 2018-5, s. 38.5(j), effective June 12, 2018, in subdivision (5e), substituted "the persons listed in this subdivision. For purposes of this subdivision, the term 'accessories' does not include electricity. The persons are:" for "the following:" in the introductory paragraph; in sub-subdivision (9)c., substituted "for-hire vessel" for "for-hire boat"; in subdivision (13), in the introductory paragraph, added "listed in this subdivision", and substituted "with them. This subdivision does not apply to pet food or feed for animals. The drugs exempt under this subdivision are as follows:" for "with them:"; and in sub-subdivision (13)b., added the last sentence; in subdivision (15), added the last two sentences; in subdivision (61a)a., substituted the first sentence for one which read: "An item exempt from tax under this Article.", and added "and fees under sub-subdivision b. of this subdivision" at the end of the last sentence; added sub-subdivisions (61a)p. and q.; and added subdivision (70). Session Laws 2019-6, ss. 4.9, 5.3, effective March 20, 2019, substituted "G.S. 105-449.106(c)" for "G.S.105-449.105A" in subdivision (11)a; and substituted "Supplemental Nutrition Assistance Program" for "Food Stamp Program" in subdivision (38). Session Laws 2019-169, ss. 3.3(k), 3.4(c), 3.10, effective July 26, 2019, substituted "Items" for "Tangible personal property, digital property, and services" in subdivision (2b); substituted "food prepared" for "foods prepared" in the second sentence of sub-subdivision (5e)a.; inserted "G.S. 105-449.105A" in sub-subdivision (11)a; substituted "following" for "following items" in the introductory paragraph of subdivision (12); deleted "items" following "packaging" in the introductory paragraph of subdivision (23); deleted "items of" preceding "tangible" twice in subdivision (24); deleted "items of" preceding "tangible" in the first sentence of subdivision (26b); substituted "products" for "items" near the beginning of subdivision (38); inserted "certain" near the beginning and middle of subdivision (43b); substituted "an item used to fulfill either repair, maintenance, and installation services or service contracts" for "property and services used to fulfill either a repair, maintenance, or installation service or a service contract" and made a minor stylistic change in the second sentence of the introductory paragraph of subdivision (61a); substituted "Items" for "Property and services" at the beginning of the second sentence in sub-subdivision (61a)a.; substituted "A service" for "Services" in sub-subdivisions (61a)c. and (61a)e.; in sub-subdivision (61a)f., substituted "tangible personal property" for "items" in the first sentence, and in the second substituted "a household or a commercial" for "household and commercial" near the beginning and "service" for "services" at the end; surbstituted "service" for "services" twice in sub-subdivsion (61a)j.; substituted "wash or vacuum" for "washes and vacuums" in sub-subdivision (61a)k.; rewrote subdivision (61a) l ., which formerly read: "A transmission, distribution, or other network asset contained on utility-owned land, right-of-way, or easement."; substituted "service, including a service" for "services, including services" in the first sentence of sub-subdivision (61a)n.; substituted "A service" for "Services" at the beginning of sub-subdivision (61a)o.; substituted "Items" for "Tangible personal property, digital property, and services" at the beginning of subdivision (61b); in subdivision (62), in the first sentence, substituted "item, including repair" for "item or repair" at the beginning, deleted "or services" following at the end, and made a minor stylistic change, and inserted "certain" preceding "digital" in the second and third sentences; deleted "items" following "packaging" in the second sentence of the introductory paragraph of subdivision (63); substituted "tangible personal property" for "other item" in sub-subdivision (65)b.; and added subdivision (71). Session Laws 2019-169, ss. 3.11(a), 3.12(a), added subdivision (5p); and rewrote sub-subdivision (61a)k., which formerly read: "Self-service car wash or vacuum." For effective date and applicability, see editor's note. Session Laws 2019-169, s. 3.13(b), added subdivision (13d). For effective date and applicability, see editor's note. Session Laws 2019-237, s. 4(a), effective November 1, 2019, substituted "January 1, 2024" for "January 1, 2020" in the last sentence of subdivision (11b). Session Laws 2019-237, s. 5(a), effective November 1, 2019, substituted "January 1, 2024" for "January 1, 2020" in the introductory language of subdivision (65) and in the second sentence of subdivision (65a). Session Laws 2019-237, s. 8.1(a), effective November 1, 2019, substituted "vehicle" for "car" in the introductory language of sub-subdivision (61a)k. Session Laws 2019-246, s. 6, made an identical change. Session Laws 2019-246, s. 6, effective November 8, 2019, substituted "car" for "vehicle" in the introductory language of sub-subdivision (61a)k. Session Laws 2019-237, s. 8.1, made an identical change. Session Laws 2020-6, s. 2(a), rewrote sub-subdivisions (5o)a. and (5o)b. For effective date and applicability, see editor's note. Session Laws 2020-6, s. 3(b), added subdivisions (72) and (73). For effective date and applicability, see editor's note. Legal Periodicals. - For article, "All the News That's Fit to Tax: First Amendment Limitations on State and Local Taxation of the Press," see 21 Wake Forest L. Rev. 59 (1985). For note on the North Carolina sales and use tax exemption for newspapers, in light of In re Village Publishing Corp., 312 N.C. 211 , 322 S.E.2d 155 (1984), appeal dismissed, - U.S. - , 105 S. Ct. 2693, 86 L. Ed. 2d 710 (1985), see 21 Wake Forest L. Rev. 145 (1985). For 1997 legislative survey, see 20 Campbell L. Rev. 481. See legislative survey, 21 Campbell L. Rev. 323 (1999). For article, "Constitutional Threats in the E-Commerce Jungle: First Amendment and Dormant Commerce Clause Limits on Amazon Laws and Use Tax Reporting Statutes," see 89 N.C.L. Rev. 2011 (2011).