A retailer engaged in business in this State is required to collect the county tax for all counties to which product is sourced in accordance with G.S. 105-164.4B. A retailer must report county tax for all counties to which property is delivered or shipped.
The following principles apply in determining where to source the sale of a product. These principles apply regardless of the nature of the product except as otherwise noted in this section:
- When a purchaser receives a product at a business location of the seller, the sale is sourced to that business location.
- When a purchaser or purchaser’s donee receives a product at a location specified by the purchaser and the location is not a business location of the seller, the sale is sourced to the location where the purchaser or the purchaser’s donee receives the product.
- When (a) and (b) do not apply, the sale is sourced to the location indicated by an address for the purchaser that is available from the business records of the seller that are maintained in the ordinary course of the seller’s business when use of this address does not constitute bad faith.
- When (a), (b), and (c) do not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser’s payment instrument, if no other address is available, when use of this address does not constitute bad faith.
- When (a), (b), (c), and (d) do not apply, including the circumstance in which the seller is without sufficient information to apply the rules, the location will be determined based on the following:
- Address from which tangible personal property was shipped,
- Address from which the digital good or the computer software delivered electronically was first available for transmission by the seller, or
- Address from which the service was provided.
A florist wire sale is sourced to the business location of the florist that takes the order for the sale. Periodic rental payments are sourced in accordance with G.S. 105-164.4B(b). Taxable digital property is sourced to the location where the purchaser takes possession of the property or makes first use of the property, whichever comes first. The rental of an accommodation is sourced to the location of the accommodation.
If you collect county and/or transit tax for one county only, enter the appropriate amounts in the spaces provided on the return. If you collect county and/or transit tax for more than one county, complete Form E-536, Schedule of County Sales and Use Taxes, and mail with your sales and use tax return.
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