GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1991

CHAPTER 914
SENATE BILL 1015

AN ACT TO RELIEVE A SELLER WHO SELLS PROPERTY UNDER A CERTIFICATE OF RESALE OF THE BURDEN OF PROVING THAT THE SALE WAS FOR RESALE AND TO PROVIDE A PENALTY FOR A PURCHASER WHO MISUSES A CERTIFICATE OF RESALE.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-164.28 reads as rewritten:
"§ 105-164.28.  Certificate of resale.
A seller who accepts a certificate of resale from a purchaser of tangible personal property has the burden of proving that the sale was not a retail sale unless all of the following conditions are met:
(1)	The seller acted in good faith in accepting the certificate of resale.
(2)	The certificate is in the form required by the Secretary.
(3)	The certificate is signed by the purchaser, states the purchaser's name, address, and registration number, and describes the type of tangible personal property generally sold by the purchaser in the regular course of business.
(4)	The purchaser is licensed under this Article or under the law of another taxing jurisdiction.
(5)	The purchaser is engaged in the business of selling tangible personal property of the type sold.
A purchaser who does not resell property purchased under a certificate of resale is liable for any tax subsequently determined to be due on the sale.  A seller of property sold under a certificate of resale is jointly liable with the purchaser of the property for any tax subsequently determined to be due on the sale only if the Secretary proves that the sale was a retail sale.
."
Sec. 2.  G.S. 105-236 is amended by adding a new subdivision to read:
"(5a)	Misuse of Certificate of Resale. – For misuse of a certificate of resale by a purchaser, the Secretary shall assess an additional tax, as a penalty, of two hundred fifty dollars ($250.00)."
Sec. 3.  This act is effective upon ratification and applies to sales made on or after that date.
In the General Assembly read three times and ratified this the 10th day of July, 1992.

James C. Gardner
President of the Senate

Daniel Blue, Jr.
Speaker of the House of Representatives