A BILL TO BE ENTITLED
AN ACT TO SUBTRACT ANY TRADE‑IN ALLOWANCE WHEN COMPUTING SALES TAX ON LIGHT UTILITY EQUIPMENT.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.3 is amended by adding a new subdivision to read:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(17b)	Light utility equipment. – Equipment that is self‑propelled, has an engine of no more than 160 net horsepower, and is not designed primarily for transportation or recreation."
SECTION 2.  G.S. 105‑164.3(37) reads as rewritten:
"(37)	Sales price. – The total amount or consideration for which personal property or services are sold, leased, or rented. The consideration may be in the form of cash, credit, property, or services. The sales price must be valued in money, regardless of whether it is received in money.
a.	The term includes all of the following:
1.	The retailer's cost of the property sold.
2.	The cost of materials used, labor or service costs, interest, losses, all costs of transportation to the retailer, all taxes imposed on the retailer, and any other expense of the retailer.
3.	Charges by the retailer for any services necessary to complete the sale.
4.	Delivery charges.
5.	Installation charges.
6.	The value of exempt personal property given to the consumer when taxable and exempt personal property are bundled together and sold by the retailer as a single product or piece of merchandise.
b.	The term does not include any of the following:
1.	Discounts, including cash, term, or coupons, that are not reimbursed by a third party, are allowed by the retailer, and are taken by a consumer on a sale.
2.	Interest, financing, and carrying charges from credit extended on the sale, if the amount is separately stated on the invoice, bill of sale, or a similar document given to the consumer.
3.	Any taxes imposed directly on the consumer that are separately stated on the invoice, bill of sale, or similar document given to the consumer.
4.	In the case of a sale of light utility equipment, the amount of any allowance given by the retailer for light utility equipment taken in trade as a partial payment for the sold equipment, not to exceed the fair market value of the traded equipment."
SECTION 3.  This act becomes effective July 1, 2003, and applies to sales made on or after that date.