State Agencies

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:

  1. The items are purchased by a State agency for its own use and in accordance with NCGS 105-164.29A.
  2. 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.
  3. 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:

  1. Prepared food and beverage taxes levied and administered by various local governments in the State.
  2. Occupancy taxes levied and administered by various local governments in the State.
  3. Highway use taxes paid on the purchase, lease, or rental of motor vehicles.
  4. State sales taxes levied on electricity or telecommunications services (except for sales to the NC Department of Transportation).
  5. Scrap tire disposal tax levied on new tires.
  6. White goods disposal tax levied on new white goods.
  7. Dry-cleaning solvent tax levied on dry-cleaning solvent purchased by a dry-cleaning facility.
  8. Excise tax on piped natural gas.

E-595EA, Application for Exemption Number for Qualified Purchases

 

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