GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2334

Short Title:  Modify Mail Order Sales Tax.	(Public)
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Sponsors: Representative Pope.
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Referred to:  Commerce.
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June 6, 1990

A BILL TO BE ENTITLED
AN ACT TO REPEAL THE SALES AND USE TAX ON CERTAIN MAIL ORDER SALES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.8 reads as rewritten:
"§ 105-164.8. Retailer to collect tax regardless of place sale consummated; mail order sales subject to tax.
(a)	Every retailer engaged in business in this State as defined in this Article shall collect the tax notwithstanding:
(1)	That the purchaser's order or the contract of sale is delivered, mailed or otherwise transmitted by the purchaser to the retailer at a point outside this State as a result of solicitation by the retailer through the medium of a catalogue or other written advertisement; or
(2)	That the purchaser's order or the contract of sale is made or closed by acceptance or approval outside this State, or before the tangible personal property enters this State; or
(3)	That the purchaser's order or the contract of sale provides that the property shall be or the property is in fact procured or manufactured at a point outside this State and shipped directly to the purchaser from the point of origin; or
(4)	That the property is mailed to the purchaser in this State or a point outside this State or delivered to a carrier outside this State f.o.b. or otherwise and directed to the purchaser in this State regardless of whether the cost of transportation is paid by the retailer or by the purchaser; or
(5)	That the property is delivered directly to the purchaser at a point outside this State; or
(6)	Any combination in whole or in part of any two or more of the foregoing statements of fact, if it is intended that the tangible personal property purchased be brought to this State for storage, use or consumption in this State.
(b)	A retailer who makes a mail order sale is engaged in business in this State and is subject to the tax levied under this Article if one of the following conditions is met:
(1)	The retailer is a corporation engaged in business under the laws of this State or a person domiciled in, a resident of, or a citizen of, this State;
(2)	The retailer maintains retail establishments or offices in this State, whether the mail order sales thus subject to taxation by this State result from or are related in any other way to the activities of such establishments or offices;
(3)	The retailer has representatives in this State who solicit business or transact business on behalf of the retailer, whether the mail order sales thus subject to taxation by this State result from or are related in any other way to such solicitation or transaction of business;
		(6)	Through compact or reciprocity with another jurisdiction of the United States, that jurisdiction uses its taxing power and its jurisdiction over the retailer in support of this State's taxing power; or
(7)	The retailer consents, expressly or by implication, to the imposition of the tax imposed by this Article.  ."
Sec. 2.  Section 56 of Chapter 1086 of the 1987 Session Laws is repealed.  All State sales and use tax revenues in the State Special Revenue Fund created in Section 56 of Chapter 1086 of the 1987 Session Laws shall be deposited in the General Fund.  All local sales and use tax revenues in the Local Special Revenue Fund created in Section 56 of Chapter 1086 of the 1987 Session Laws shall be distributed to local governments in accordance with Articles 39, 40, 41, and 42 of Chapter 105 of the General Statutes and in accordance with Chapter 1096 of the 1967 Session Laws.
Sec. 3.  This act shall become effective July 1, 1990, and applies to sales made on or after that date.