North Carolina § 105-468 - Scope of use tax.

§ 105-468. Scope of use tax.

The use tax authorized by this Article is a tax at the rate of one percent (1%) of the purchase price of an item or transaction that is not sold in the taxing county but is for storage, use, or consumption in the taxing county and sourced in accordance with Article 5 of Subchapter I of this Chapter. The tax applies to the same items that are subject to tax under G.S. 105-467 . The collection and administration of this tax shall be in accordance with Article 5 of Subchapter I of this Chapter. Where a local sales or use tax was due and has been paid on an item or transaction by the purchaser in another taxing county within the State, or where a local sales or use tax was due and has been paid in a taxing jurisdiction outside the State where the purpose of the tax is similar in purpose and intent to the tax which may be imposed pursuant to this Article, the tax paid may be credited against the tax imposed under this section by a taxing county upon the same property or transaction. If the amount of sales or use tax so paid is less than the amount of the use tax due the taxing county under this section, the purchaser shall pay to the Secretary an amount equal to the difference between the amount so paid in the other taxing county or jurisdiction and the amount due in the taxing county. The Secretary may require such proof of payment in another taxing county or jurisdiction as is deemed to be necessary. The use tax levied under this Article is not subject to credit for payment of any State sales or use tax not imposed for the benefit and use of counties and municipalities. No credit shall be given under this section for sales or use taxes paid in a taxing jurisdiction outside this State if that taxing jurisdiction does not grant similar credit for sales taxes paid under this Article. History (1971, c. 77, s. 2; 1973, c. 476, s. 193; 1979, 2nd Sess., c. 1100, s. 2; 1989, c. 692, s. 3.8; 1991, c. 689, s. 317; 1996, 2nd Ex. Sess., c. 13, s. 1.4; 2012-79, s. 1.10; 2013-414, s. 49(a); 2016-5, s. 3.7(b); 2017-204, s. 2.9(d).) Editor's Note. - Session Laws 2017-204, s. 7.1, is a severability clause. Effect of Amendments. - Session Laws 2012-79, s. 1.10, effective June 26, 2012, in the first sentence of the third paragraph, inserted "was due and", substituted "purchaser in" for "purchaser, either in", and inserted "where a local sales or use tax was due and has been paid." Session Laws 2013-414, s. 49(a), effective August 23, 2013, added the last sentence in the first paragraph, and deleted the former second paragraph. Session Laws 2016-5, s. 3.7(b), effective May 11, 2016, substituted "purchase price" for "cost price" in the first sentence of the first paragraph. Session Laws 2017-204, s. 2.9(d), effective August 11, 2017, in the first paragraph, rewrote the first sentence, and substituted "Subchapter I of this Chapter" for "Chapter 105 of the General Statutes" in the last sentence; and, in the first sentence of the second paragraph, substituted "on an item or transaction" for "with respect to tangible personal property," and added "or transaction" at the end.