North Carolina § 105-449 - 88A. Liability for tax due on motor fuel designated as exempt by the use of cards or codes.

§ 105-449. 88A. Liability for tax due on motor fuel designated as exempt by the use of cards or codes.

Repealed by Session Laws 2006-162, s. 14(b), effective January 1, 2007, and applicable to motor fuel purchased on or after that date. Exempt Card or Code. - An entity that issues an exempt card or code has a duty to determine if the person to whom it is issued is exempt from the motor fuel excise tax. An entity that issues an exempt card or code to a person who is not exempt from tax is liable for tax due on motor fuel the person purchases at retail by use of the exempt card or code. If a supplier authorizes another entity to issue an exempt card or code to a person who is not exempt from tax, the supplier and the entity that issued the card are jointly and severally liable for tax due on motor fuel the person purchases at retail by use of the exempt card or code. Card Holder. - A person to whom an exempt card or code is issued is liable for any tax due on fuel purchased with the card or code for a purpose that is not exempt. A person who misuses an exempt card or code by purchasing fuel with the card or code for a purpose that is not exempt is liable for the tax due on the fuel. History (1997-60, s. 9; 2001-205, s. 4; 2006-162, s. 14(b).) Editor's Note. - Session Laws 2006-162, s. 33, provides, in part, that: "An exempt card or code will not be valid for sales of motor fuel at the terminal rack on or after January 1, 2007." Effect of Amendments. - Session Laws 2006-162, s. 14(b), effective January 1, 2007, and applicable to motor fuel purchased on or after that date, deleted former (a) concerning exempt cards at rack; in subsection (b), substituted "Card or Code" for "Cards at Retail" in the subsection catchline and deleted the former first sentence which read: "An 'exempt card or code' is a credit card or an access code that enables the person to whom the card or code is issued to buy motor fuel at retail without paying the motor fuel excise tax on the fuel"; in the first sentence of subsection (c), substituted "code is issued" for "exempt access card is issued for use at a terminal or at retail" near the beginning and inserted "or code" near the end.