GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1253

Short Title:  Modify Mail Order Sales Tax.	(Public)
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Sponsors: Representative Miller.
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Referred to:  Finance.
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May 10, 1991

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE MAIL ORDER SALES TAX.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.3(5) reads as rewritten:
"(5)	'Engaged in business.'  A person is engaged in business if the person sells or delivers tangible personal property for storage, use, or consumption in this State and:
a.	Maintains, occupies, or uses any place of business in this State, whether temporarily or permanently, directly or indirectly, or through a subsidiary or agent;
b.	Has an agent in this State who solicits orders or sells or delivers property;
c.	Maintains tangible personal property in this State for lease or rental, whether temporarily or permanently, directly or indirectly, or through a subsidiary or agent;
d.	Systematically solicits orders in this State through a radio, television, or cable television operator located in this State, billboards located in this State, or a publisher located in this State; or
e.	Systematically solicits orders in this State by any means and utilizes telecommunications, banking, or debt collection services in this State.
	."
Sec. 2.  G.S. 105-164.3(8) is repealed.
Sec. 3.  G.S. 105-164.3(14) reads as rewritten:
"(14)	'Retailer' means and includes every person engaged in the business of making sales of tangible personal property at retail, either within or without this State, or peddling the same or soliciting or taking orders for sales, whether for immediate or future delivery, for storage, use or consumption in this State and every manufacturer, producer or contractor engaged in business in this State and selling, delivering, erecting, installing or applying tangible personal property for use in this State notwithstanding that said property may be permanently affixed to a building or realty or other tangible personal property. Provided, however, that when in the opinion of the Secretary it is necessary for the efficient administration of this Article to regard any salesmen, solicitors, representatives, consignees, peddlers, truckers or canvassers as agents of the dealers, distributors, consignors, supervisors, employers or persons under whom they operate or from whom they obtain the tangible personal property sold by them regardless of whether they are making sales on their own behalf or on behalf of such dealers, distributors, consignors, supervisors, employers or persons, the Secretary may so regard them and may regard the dealers, distributors, consignors, supervisors, employers or persons as 'retailers' for the purpose of this Article."
Sec. 4.  G.S. 105-164.8 reads as rewritten:
"§ 105-164.8. Retailer to collect tax regardless of place sale consummated.
	Every retailer engaged in business in this State shall collect the taxes levied in this Article 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 said tangible personal property enters this State; or
(3)	That the purchaser's order or the contract of sale provides that said property shall be or 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 said 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 said 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.
								."
Sec. 5.  This act is effective upon ratification.