North Carolina § 105-164 - 42H. Certification of certified automated system and effect of certification.

§ 105-164. 42H. Certification of certified automated system and effect of certification.

Certification. - The Secretary may certify a software program as a certified automated system if the Secretary determines that the program correctly determines all of the following and that the software can generate reports and returns required by the Secretary: The applicable combined State and local sales and use tax rate for a sale, based on the sourcing principles in G.S. 105-164.4B. Whether or not an item is exempt from tax, based on a uniform product code or another method. Repealed by Session Laws 2006-33, s. 12, effective June 1, 2006. The amount of tax to be remitted for each taxpayer for a reporting period. Any other issue necessary for the application or calculation of sales and use tax due. Liability. - A seller may choose to use a certified automated system in performing its sales tax administration functions. A seller that uses a certified automated system is liable for sales and use taxes due on transactions it processes using the certified automated system except for underpayments of tax attributable to errors in the functioning of the system. A person that provides a certified automated system is responsible for the proper functioning of that system and is liable for underpayments of tax attributable to errors in the functioning of the system. History (2000-120, s. 2; 2001-347, ss. 1.1, 1.3; 2005-276, s. 33.31; 2006-33, s. 12.) Editor's Note. - Session Laws 2001-347, s. 1.1, effective August 8, 2001, recodifies G.S. 105-164.43 A(a) as G.S. 104-164.42H(a). Session Laws 2001-347, s. 3.1, as amended by Session Laws 2003-416, s. 13, provided for a January 1, 2006, contingent expiration date. However, Session Laws 2005-276, s. 33.31, amended Session Laws 2001-347, s. 3.1, as amended by Session Laws 2003-416, s. 13 to read: "Part 1 of this act [which enacted Part 7A of Article 5 of Chapter 105 ] is effective when it becomes law [August 8, 2001]." Effect of Amendments. - Session Laws 2006-33, s. 12, effective June 1, 2006, repealed former subdivision (a)(3), which read: "Whether or not an exemption certificate offered by a purchaser is a valid certificate, based on the Department's registry of holders of exemption certificates."