A BILL TO BE ENTITLED
AN ACT TO EQUALIZE THE SALES TAX ON AGGREGATES AND ON ASPHALT AND CONCRETE.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
(1)	Aggregates. – Stone, sand, gravel, recycled concrete, and recycled asphalt. The term includes stone material that has been crushed, screened, washed, or processed in any way.
 (1a)	Analytical services. – Testing laboratories that are included in national industry 541380 of NAICS or medical laboratories that are included in national industry 621511 of NAICS.
 (1b)	Ancillary service. – A service associated with or incidental to the provision of a telecommunications service. The term includes detailed communications billing, directory assistance, vertical service, and voice mail service. A vertical service is a service, such as call forwarding, caller ID, three‑way calling, and conference bridging, that allows a customer to identify a caller or manage multiple calls and call connections.
(1c)	Asphalt and concrete. – Bituminous asphalt, hot mix asphalt, Superpave mix asphalt, and unhardened concrete, however manufactured.
 (1d)	Bundled transaction. – A retail sale of two or more distinct and identifiable products, at least one of which is taxable and one of which is exempt, for one nonitemized price. Products are not sold for one nonitemized price if an invoice or another sales document made available to the purchaser separately identifies the price of each product. A bundled transaction does not include the retail sale of any of the following:
a.	A product and any packaging item that accompanies the product and is exempt under G.S. 105‑164.13(23).
b.	A sale of two or more products whose combined price varies, or is negotiable, depending on the products the purchaser selects.
c.	A sale of a product accompanied by a transfer of another product with no additional consideration.
d.	A product and the delivery or installation of the product.
e.	A product and any service necessary to complete the sale.
 (1e)	Business. – Includes any activity engaged in by any person or caused to be engaged in by him with the object of gain, profit, benefit or advantage, either direct or indirect. The term "business" shall not be construed in this Article to include occasional and isolated sales or transactions by a person who does not hold himself out as engaged in business.
...."
SECTION 2.  G.S. 105‑164.13 reads as rewritten:
"§ 105‑164.13.  Retail sales and use tax.
The sale at retail, the use, storage or consumption in this State of the following tangible personal property is specifically exempted from the tax imposed by this Article:
…
(3)	Products of forests and mines in their original or unmanufactured state when sold by the producer in the capacity of producer. This subdivision does not apply to sales of aggregates."
…
(40a)	Sales of aggregates to contractors or subcontractors for use by them in the performance of contracts with the Department of Transportation or with a governmental entity listed in G.S. 105‑164.14(c).
(40b)	Asphalt and concrete.
…."
SECTION 3.  This act becomes effective July 1, 2009. This act does not apply to aggregates purchased to fulfill a lump‑sum or unit‑price contract entered into or awarded before the effective date of this act or entered into or awarded pursuant to a bid made before the effective date of this act.