GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 1432

Short Title:  Correct Sales Tax Inequity.	(Public)
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Sponsors: Representatives Russell; Bowman and Ives.
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Referred to:  Finance.
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May 17, 1993

A BILL TO BE ENTITLED
AN ACT TO CORRECT INEQUITIES AND PROVIDE FOR MORE EFFICIENT ENFORCEMENT OF THE SALES TAX LAW.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.5 reads as rewritten:
"§ 105-164.5.  Imposition of tax; wholesale merchant.
There is levied and imposed, in addition to all other taxes of every kind now imposed by law, a privilege or license tax upon every person who engages in the business of selling tangible personal property at wholesale in this State as follows:
(1)	Every wholesale merchant as defined in this Article shall apply for and obtain an annual license and pay for the license a tax of twenty-five dollars ($25.00).  This license tax shall be paid in advance within the first 15 days of July in each year or, in the case of a new business, within 15 days after business is commenced. Manufacturers making wholesale sales, as defined in this Article, of their own manufactured products, directly and exclusively from the place where the products are manufactured are not required to obtain an annual wholesale license.
	(2)	The sale of any tangible personal property by any wholesale merchant to anyone other than to a registered retailer, wholesale merchant, or nonresident retail or wholesale merchant for resale shall be taxable at the rate provided in this Article upon the retail sale of tangible personal property.  The wholesale merchant shall keep a record of each taxable sale, which may include the name and address of the purchaser, in accordance with rules adopted by the Secretary.
	(3) 	The sale of any tangible personal property by any wholesale merchant to a nonresident retail or wholesale merchant must be in strict compliance with rules adopted by the Secretary. A sale that does not conform to the rules is taxable at the rate provided in this Article upon the retail sale of tangible personal property.
	(4) 	Every wholesale merchant who sells tangible personal property to retailers or nonresident retail or wholesale merchants for resale shall deliver to the customer a bill of sale for each sale, whether for cash or on credit, shall retain a duplicate or carbon copy of each bill of sale, and shall keep each bill of sale on file for at least three years from the date of sale. Failure to comply with this subsection shall subject the wholesale merchant to liability for tax upon the sales at the rate levied in this Article upon retail sales.
	(5) 	The tax levied is in addition to all other taxes."
Sec. 2.  This act becomes effective October 1, 1993.