NCGS 105-164.29A authorizes the Secretary of Revenue to issue an exemption number to a State agency. This exemption number can then be placed on Form E-595E, Streamlined Sales Tax Agreement Certificate of Exemption, by a State agency to purchase tangible personal property exempt from sales or use tax. See Sales and Use Tax Technical Bulletin Section 52 for more information.
NCGS 105-164.13(52) sets out the conditions that must be met for a purchase by a State agency to be exempt through the use of a State agency exemption number. For a purchase to be exempt, all of the following conditions must be met:
- The items are purchased by a State agency for its own use and in accordance with NCGS 105-164.29A.
- The items are purchased pursuant to a valid purchase order issued by a 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 an agency-issued purchase order, the agency must provide to or have on file with the retailer the agency’s exemption number.
The exemption number cannot be used by contractors or subcontractors of a State agency to purchase items to fulfill a contract with a State agency or by employees of a State agency to purchase food, lodging, or other taxable items paid by the employee from their own funds and reimbursed by a State agency.
A State agency exemption number does not apply to the following taxes and these taxes must be paid to the vendor by the State agency:
- Prepared food and beverage taxes levied and administered by various local governments in the State.
- Occupancy taxes levied and administered by various local governments in the State.
- Highway use taxes paid on the purchase, lease, or rental of motor vehicles.
- State sales taxes levied on electricity or telecommunications services (except for sales to the NC Department of Transportation).
- Scrap tire disposal tax levied on new tires.
- White goods disposal tax levied on new white goods.
- Dry-cleaning solvent tax levied on dry-cleaning solvent purchased by a dry-cleaning facility.
- Excise tax on piped natural gas.