STATE NAME: North Carolina Effective Date: 10/21/2011 Completed by: Eric K. Wayne, Director E-mail address: eric.wayne@dornc.

com Phone number: 919-733-2151

Date Submitted: 10/21/2011

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions

Each of the items listed in the chart is defined in the Library of Definitions in the Streamlined Sales and Use Tax Agreement (SSUTA) as amended through December 13, 2010. Refer to Appendix C of the SSUTA for each definition. Place an X in the appropriate column under the heading Treatment of definition to indicate the treatment of each definition in your state. If a product definition was not adopted by your state, enter NA in the column under the heading Reference and indicate in the Treatment of definition columns the treatment of the product in your state. In accordance with the SSUTA, your state must adopt the definitions in the Library of Definitions that apply to your state without qualifications except for those allowed by the SSUTA. For this reason, do not enter any comments or qualifications in the two columns under the heading Treatment of definition. If your state has adopted a definition in the Library of Definitions with a qualification not specified in the SSUTA, do not place an X in either column under the heading Treatment of definition but include a comment in the Reference column explaining the qualification. Enter the applicable statute/rule cite in the Reference column. Sellers and certified service providers are relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state relative to treatment of the terms defined in the Library of Definitions.

Administrative Definitions
Sales price: Identify how the options listed below are treated in your state. The following options may be excluded from the definition of sales price only if they are separately stated on the bill to the purchaser. Charges by the seller for any services necessary to complete the sale other than delivery and installation Telecommunication nonrecurring charges Installation charges Value of trade-in
Delivery Charges for personal property or services other than direct mail. The following charges are included in the definition of sales price unless your state excludes them from sales price when such charges are separately stated on the bill to the purchaser. For responses below assume the charges are separately stated on the bill to the purchaser.

Treatment of definition
Included in Sales Price X X X X
Included in Sales Price Excluded from Sales Price

Reference
Statute/Rule Cite/Comment

Excluded from Sales Price

G.S. 105-164.3(37) G.S. 105-164.3(37) G.S. 105-164.13(49) G.S. 105-164.3(37) Statute/Rule Cite/Comment

Handling, crating, packing, preparation for mailing or delivery, and similar charges Transportation, shipping, postage, and similar charges SSTGB Form F0014 (Revised June 7, 2011)

X X

G.S. 105-164.3(6) & G.S. 105-164.3(37) G.S. 105-164.3(6) &

STATE NAME: North Carolina Effective Date: 10/21/2011

Delivery Charges for direct mail. The following charges are included in the definition of sales price unless your state excludes them from sales price when such charges are separately stated on the bill to the purchaser. For responses below assume the charges are separately stated on the bill to the purchaser. Included in Sales Price

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
Excluded from Sales Price

G.S. 105-164.3(37) Statute/Rule Cite/Comment

Handling, crating, packing, preparation for mailing or delivery, and similar charges Transportation, shipping, and similar charges Postage

X X X

G.S. 105-164.3(6) G.S. 105-164.13(49a) G.S. 105-164.3(6) G.S. 105-164.3(49a) G.S. 105-164.3(6) G.S. 105-164.3(49a) Statute/Rule Cite/Comment Statute/Rule Cite/Comment See specific items G.S. 105-164.3(8g) & G.S. 105-164.13D(a) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(1) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(2) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(3) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(4) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(5) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(6) G.S. 105-164.3(8g) & G.S. 105-164.13D(a)(7) G.S. 105-164.4

Sales Tax Holidays

Sales Tax Holidays: Does your state have a sales tax holiday? If yes, indicate the tax treatment during your state sales tax holiday for the following products. All Energy star qualified products Specific energy star qualified products or energy star qualified classifications Clothes washers Freezers and refrigerators Central air conditioners and room air conditioners Air-source heat pumps and geothermal heat pumps Ceiling fans Dehumidifiers Programmable thermostats Amount of Threshold

Yes X Taxable

No Exempt

X X X X X X X X X

All Disaster Preparedness Supply Specific Disaster Preparedness Supply Disaster preparedness general supply Disaster preparedness safety supply Disaster preparedness food-related supply SSTGB Form F0014 (Revised June 7, 2011)

STATE NAME: North Carolina Effective Date: 10/21/2011

Disaster preparedness fastening supply School supply School art supply School instructional material School computer supply Other products defined in Part II of the Library of Definitions included in your state sales tax holiday. Clothing Computers Prewritten computer software Clothing accessories or equipment Protective Equipment Sport and Recreational Equipment 50.00 100.00 100.00 300.00 250.00 Amount of Threshold 100.00 3500.00 X X X Taxable

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
X X X X Exempt X X G.S. 105-164.3(37d) & G.S. 105-164.13C(a)(2) G.S. 105-164.3(37d) & G.S. 105-164.13C(a)(2) G.S. 105-164.3(37b) & G.S. 105-164.13C(a)(2a) G.S. 105-164.3(4d) & G.S. 105-164.13C(a)(3a) Statute/Rule Cite/Comment G.S. 105-164.3(3) & G.S. 105-164.13C(a)(1) G.S. 105-164.3(4b) & G.S. 105-164.13C(a)(3) G.S. 105-164.3(29a) G.S. 105-164.3(4) & G.S. 105-164.13C(b)(1) G.S. 105-164.3(31) & G.S. 105-164.13C(b)(2) G.S. 105-164.3(42) & G.S. 105-164.13C(a)(4)

Product Definitions
Clothing and related products Clothing Essential clothing priced below a state specific threshold Fur clothing Clothing accessories or equipment Protective equipment Sport or recreational equipment Computer related products Computer Prewritten computer software Taxable X X X X X X Taxable X X Exempt Exempt Statute/Rule Cite/Comment G.S. 105-164.3(3) NA. See G.S. 105-164.3(3) NA. See G.S. 105-164.3(3) G.S. 105-164.3(4) G.S. 105-164.3(31) G.S. 105-164.3(42) Statute/Rule Cite/Comment G.S. 105-164.3(4b) G.S. 105-164.3(29a) Some exemptions under G.S. 105-164.13(43a) & (43b) G.S. 105-164.3(29a);

Prewritten computer software delivered electronically SSTGB Form F0014 (Revised June 7, 2011)

STATE NAME: North Carolina Effective Date: 10/21/2011

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
Some exemptions under G.S. 105-164.13(43a) & (43b) G.S. 105-164.3(29a); Some exemptions under G.S. 105-164.13(43a) & (43b) G.S. 105-164.3(5b) & G.S. 105-164.13(43) G.S. 105-164.3(5b) & G.S. 105-164.13(43) G.S. 105-164.3(5b) & G.S. 105-164.13(43) Statute/Rule Cite/Comment NA G.S. 105-164.3(29a); G.S. 105-164.3(37). Some exemptions under G.S. 105-164.13(43a) & (43b) NA G.S. 105-164.3(29a); G.S. 105-164.3(37). Some exemptions under G.S. 105-164.13(43a) & (43b) NA G.S. 105-164.3(29a); G.S. 105-164.3(37). Some exemptions under G.S. 105-164.13(43a) &(43b) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) Statute/Rule Cite/Comment NA G.S. 105-164.3(29a) G.S. 105-164.3(37) Some exemptions under G.S. 105-164.13(43a) & (43b) NA G.S. 105-164.3(29a) G.S. 105-164.3(37) Some exemptions under G.S. 105-164.13(43a) & (43b) NA G.S. 105-164.3(29a)

Prewritten computer software delivered via load and leave

Non-prewritten (custom) computer software Non-prewritten (custom) computer software delivered electronically Non-prewritten (custom) computer software delivered via load and leave Mandatory computer software maintenance contracts Mandatory computer software maintenance contracts with respect to prewritten computer software Taxable X

X X X Exempt

Mandatory computer software maintenance contracts with respect to prewritten computer software which is delivered electronically

Mandatory computer software maintenance contracts with respect to prewritten computer software which is delivered via load and leave

Mandatory computer software maintenance contracts with respect to nonprewritten (custom) computer software Mandatory computer software maintenance contracts with respect to nonprewritten (custom) software which is delivered electronically Mandatory computer software maintenance contracts with respect to nonprewritten (custom) software which is delivered via load and leave Optional computer software maintenance contracts Optional computer software maintenance contracts with respect to prewritten computer software that only provide updates or upgrades with respect to the software Optional computer software maintenance contracts with respect to prewritten computer software that only provide updates or upgrades delivered electronically with respect to the software Optional computer software maintenance contracts with respect to prewritten SSTGB Form F0014 (Revised June 7, 2011)

X X X Taxable X Exempt

STATE NAME: North Carolina Effective Date: 10/21/2011

computer software that only provide updates or upgrades delivered via load and leave with respect to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software that only provide updates or upgrades with respect to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software that only provide updates or upgrades delivered electronically with respect to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software that only provide updates or upgrades delivered via load and leave with respect to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software that only provide support services to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software that provide updates or upgrades and support services to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software that provide updates or upgrades delivered electronically and support services to the software Optional computer software maintenance contracts with respect to nonprewritten (custom) computer software provide updates or upgrades delivered via load and leave and support services to the software Indicate your states tax treatment for optional computer software maintenance contracts with respect to prewritten computer software sold for one non-itemized price that include updates and upgrades and/or support services. Use percentages in the taxable and exempt columns to denote tax treatment in your state. For example: if all taxable put 100% in the taxable column; if all nontaxable/exempt put 100% in the exempt column; if 50% taxable and 50% nontaxable/exempt put 50% in the taxable column and 50% in the exempt column. Optional computer software maintenance contracts with respect to prewritten computer software that provide updates or upgrades and support services to the software Optional computer software maintenance contracts with respect to prewritten computer software that provide updates and upgrades delivered electronically and support services to the software SSTGB Form F0014 (Revised June 7, 2011)

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.3(37) Some exemptions under G.S. 105-164.13(43a) & (43b) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) N/A NC does not impose a tax on services of this nature. G.S. 105-164.3(5c) & G.S. 105-164.13(43). NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) NA G.S. 105-164.3(5c) & G.S. 105-164.13(43) Statute/Rule Cite/Comment

Taxable Percentage

Exempt Percentage

100%

100%

NA G.S. 105-164.3(29a) G.S. 105-164.3(37) Some exemptions under G.S. 105-164.13(43a) & (43b) NA G.S. 105-164.3(29a) G.S. 105-164.3(37) Some exemptions under G.S. 105-164.13(43a) & (43b) and

STATE NAME: North Carolina Effective Date: 10/21/2011

Optional computer software maintenance contracts with respect to prewritten computer software that provide updates and upgrades delivered via load and leave and support services to the software 100%

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
support services if separately stated NA G.S. 105-164.3(29a) G.S. 105-164.3(37) Some exemptions under G.S. 105-164.13(43a) & (43b) and support services if separately stated NC does not impose a tax on services of this nature. Statute/Rule Cite/Comment G.S. 105-164.4(a)(6b)

Optional computer software maintenance contracts with respect to prewritten computer software that only provide support services to the software Digital products(excludes telecommunications services, ancillary services and computer
software)

100%

Yes X

No

A state imposing tax on products transferred electronically is not required to adopt definitions for specified digital products. (Specified digital products includes the defined terms: digital audio visual works; digital audio works; and digital books.) Does your state impose tax on products transferred electronically other than digital audio visual works, digital audio works, or digital books? Digital audio visual works sold to an end user with rights for permanent use Digital audio works sold to an end user with rights for permanent use Digital books sold to an end user with rights for permanent use For transactions other than those included above, a state must specifically impose and separately enumerate a broader imposition of the tax. Does your state impose tax on: Digital audio visual works sold to users other than the end user.

Taxable X X X Yes

Exempt

No

Statute/Rule Cite/Comment G.S. 105-164.3(1g) & G.S. 105-164.4(a)(6b) G.S. 105-164.3(1e) & G.S. 105-164.4(a)(6b) G.S. 105-164.4(a)(6b) Statute/Rule Cite/Comment

Digital audio visual works sold with rights of use less than permanent use.

Digital audio visual works sold with rights of use conditioned on continued payment.

Digital audio works sold to users other than the end user.

G.S. 105-164.3(1g) & G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.3(1g) & G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.3(1g) & G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.3(1e) & G.S. 105-164.4(a)(6b) Some exemptions under

SSTGB Form F0014 (Revised June 7, 2011)

STATE NAME: North Carolina Effective Date: 10/21/2011

Digital audio works sold with rights of use less than permanent. X

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.13(43b) G.S. 105-164.3(1e) & G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.3(1e) & G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b) G.S. 105-164.4(a)(6b) Some exemptions under G.S. 105-164.13(43b)

Digital audio works sold with rights of use conditioned on continued payments.

Digital books sold to users other than the end user.

Digital books sold with rights of use less than permanent.

Digital books sold with rights of use conditioned on continued payments.

Does your state treat subscriptions to products transferred electronically differently than a non-subscription purchase of such product?

Section 332H provides that states may have product based exemptions for specific items within specified digital products. (Specified digital products includes the defined terms: digital audio visual works; digital audio works; and digital books.) List product based exemptions for specific items included in specified digital products. Example: digital textbooks NA

Statute/Rule Cite/Comment

Food and food products Food and food ingredients excluding alcoholic beverages and tobacco o

Taxable X

Exempt

Candy

X X

o Dietary Supplements SSTGB Form F0014 (Revised June 7, 2011)

Statute/Rule Cite/Comment G.S. 105-164.3(10) & G.S. 105-164.13B; Subject to 2% rate. G.S. 105-164.3(2) & G.S. 105-164.13B G.S. 105-164.3(7) &

STATE NAME: North Carolina Effective Date: 10/21/2011

o Soft Drinks X

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.13B G.S. 105-164.3(40) & G.S. 105-164.13B G.S. 105-164.13(50) Subject to tax on 50% of gross receipts when sold from vending machines. G.S. 105-164.3(10)& G.S. 105-164.13B; Subject to 2% rate. Included in definition of food. G.S. 105-164.3(11) & G.S. 105-164.13B G.S. 105-164.13(50) Subject to 2% rate of 50% of gross receipts (excluding candy or prepared food) G.S. 105-164.3(28) & G.S. 105-164.13B Some exemptions G.S. 105-164.13(26),(26a),(27),(27a) & G.S. 105-164.13B Excluded from Prepared Food Statute/Rule Cite/Comment

Bottled water

Food sold through vending machines

Prepared Food

Prepared food options - The following food items heated, mixed or combined by the seller are included in the definition of prepared food unless a state elects to exclude them from the definition of prepared food. Such food items excluded from prepared food are taxed the same as food and food ingredients. (Indicate how the options for the following food items that otherwise meet the definition of prepared food are treated in your state.) Food sold without eating utensils provided by the seller whose primary NAICS classification is manufacturing in sector 311, except subsector 3118 (bakeries) Food sold without eating utensils provided by the seller in an unheated state by weight or volume as a single item Bakery items sold without eating utensils provided by the seller, including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas Health-care products Drugs (indicate how the options are treated in your state) Drugs for human use SSTGB Form F0014 (Revised June 7, 2011)

Included in Prepared Food

X X X

G.S. 105-164.3(28) G.S. 105-164.3(28) G.S. 105-164.3(28) Some exemptions under G.S. 105164.13B(a)(4) artisan bakery Statute/Rule Cite/Comment

Taxable

Exempt

STATE NAME: North Carolina Effective Date: 10/21/2011

Drugs for human use without a prescription Drugs for human use with a prescription Insulin for human use without a prescription Insulin for human use with a prescription Medical oxygen for human use without a prescription Medical oxygen for human use with a prescription Over-the-counter drugs for human use without a prescription Over-the-counter drugs for human use with a prescription Grooming and hygiene products for human use Drugs for human use to hospitals Drugs for human use to other medical facilities Prescription drugs for human use to hospitals Prescription drugs for human use to other medical facilities Free samples of drugs for human use Free samples of prescription drugs for human use Drugs for animal use Drugs for animal use without a prescription Drugs for animal use with a prescription Insulin for animal use without a prescription Insulin for animal use with a prescription Medical oxygen for animal use without a prescription Medical oxygen for animal use with a prescription SSTGB Form F0014 (Revised June 7, 2011) X X X X X X

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S 105-164.13(13) G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.3(25a) & G.S. 105-164.4 G.S. 105-164.3(25a) & G.S. 105-164.13(13) G.S. 105-164.3(46) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.13(13) G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13)

X X X X X

X X

X X X X X X

STATE NAME: North Carolina Effective Date: 10/21/2011

Over-the-counter drugs for animal use without a prescription Over-the-counter drugs for animal use with a prescription Grooming and hygiene products for animal use Drugs for animal use to veterinary hospitals and other animal medical facilities
Prescription drugs for animal use to hospitals and other animal medical facilities

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
X X X X X X X Taxable X Exempt G.S. 105-164.3(25a) & G.S. 105-164.4 G.S. 105-164.3(25a) & G.S. 105-164.13(13) G.S. 105-164.3(46) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13) G.S. 105-164.3(8a) & G.S. 105-164.4 G.S. 105-164.3(8a) & G.S. 105-164.13(13) Statute/Rule Cite/Comment G.S. 105-164.3(8b) & G.S. 105-164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12)

Free samples of drugs for animal use Free samples of prescription drugs for animal use Durable medical equipment (indicate how the options are treated in your state) Durable medical equipment, not for home use, without a prescription Durable medical equipment, not for home use, with a prescription Durable medical equipment, not for home use, with a prescription paid for by Medicare Durable medical equipment, not for home use, with a prescription reimbursed by Medicare Durable medical equipment, not for home use, with a prescription paid for by Medicaid Durable medical equipment, not for home use, with a prescription reimbursed by Medicaid Durable medical equipment for home use without a prescription Durable medical equipment for home use with a prescription Durable medical equipment for home use with a prescription paid for by Medicare Durable medical equipment for home use with a prescription reimbursed by Medicare Durable medical equipment for home use with a prescription paid for by Medicaid Durable medical equipment for home use with a prescription reimbursed by Medicaid SSTGB Form F0014 (Revised June 7, 2011)

X X X X X X X X X X X

10

STATE NAME: North Carolina Effective Date: 10/21/2011

Oxygen delivery equipment, not for home use, without a prescription Oxygen delivery equipment, not for home use, with a prescription Oxygen delivery equipment, not for home use, with a prescription paid for by Medicare Oxygen delivery equipment, not for home use, with a prescription reimbursed by Medicare Oxygen delivery equipment, not for home use, with a prescription paid for by Medicaid Oxygen delivery equipment, not for home use, with a prescription reimbursed by Medicaid Oxygen delivery equipment for home use without a prescription Oxygen delivery equipment for home use with a prescription Oxygen delivery equipment for home use with a prescription paid for by Medicare Oxygen delivery equipment for home use with a prescription reimbursed by Medicare Oxygen delivery equipment for home use with a prescription paid for by Medicaid Oxygen delivery equipment for home use with a prescription reimbursed by Medicaid Kidney dialysis equipment, not for home use, without a prescription Kidney dialysis equipment, not for home use, with a prescription Kidney dialysis equipment, not for home use, with a prescription paid for by Medicare Kidney dialysis equipment, not for home use, with a prescription reimbursed by Medicare Kidney dialysis equipment, not for home use, with a prescription paid for by Medicaid Kidney dialysis equipment, not for home use, with a prescription reimbursed by Medicaid Kidney dialysis equipment for home use without a prescription Kidney dialysis equipment for home use with a prescription SSTGB Form F0014 (Revised June 7, 2011) X

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.3(8b) & G.S. 105-164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.4 G.S. 105-164.3(8b) &

X X X X X X X X X X X X X X X X X X X

11

STATE NAME: North Carolina Effective Date: 10/21/2011

Kidney dialysis equipment for home use with a prescription paid for by Medicare Kidney dialysis equipment for home use with a prescription reimbursed by Medicare Kidney dialysis equipment for home use with a prescription paid for by Medicaid Kidney dialysis equipment for home use with a prescription reimbursed by Medicaid Enteral feeding systems, not for home use, without a prescription Enteral feeding systems, not for home use, with a prescription Enteral feeding systems, not for home use, with a prescription paid for by Medicare Enteral feeding systems, not for home use, with a prescription reimbursed by Medicare Enteral feeding systems, not for home use, with a prescription paid for by Medicaid Enteral feeding systems, not for home use, with a prescription reimbursed by Medicaid Enteral feeding systems for home use without a prescription Enteral feeding systems for home use with a prescription Enteral feeding systems for home use with a prescription paid for by Medicare Enteral feeding systems for home use with a prescription reimbursed by Medicare Enteral feeding systems for home use with a prescription paid for by Medicaid Enteral feeding systems for home use with a prescription reimbursed by Medicaid Repair and replacement parts for durable medical equipment which are for single patient use Mobility enhancing equipment (indicate how the options are treated in your state) Mobility enhancing equipment without a prescription SSTGB Form F0014 (Revised June 7, 2011)

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
X X X X X X X X X X X X X G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.4(8b) & G.S. 1050164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.4(8b) & G.S. 1050164.4 G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.13(12) G.S. 105-164.3(8b) & G.S. 105-164.4 Statue/Rule Cite/Comment G.S. 105-164.3(21a) & G.S. 105-164.4

X X

X X

Taxable X

Exempt

12

STATE NAME: North Carolina Effective Date: 10/21/2011

Mobility enhancing equipment with a prescription Mobility enhancing equipment with a prescription paid for by Medicare Mobility enhancing equipment with a prescription reimbursed by Medicare Mobility enhancing equipment with a prescription paid for by Medicaid Mobility enhancing equipment with a prescription reimbursed by Medicaid

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
X X X X X G.S. 105-164.3(21a) & G.S. 105-164.13(12) G.S. 105-164.3(21a) & G.S. 105-164.13(12) G.S. 105-164.3(21a) & G.S. 105-164.13(12) G.S. 105-164.3(21a) & G.S. 105-164.13(12) G.S. 105-164.3(21a) & G.S. 105-164.13(12) Statute/Rule Cite/Comment G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12)

Prosthetic devices (indicate how the options are treated in your state) Prosthetic devices without a prescription Prosthetic devices with a prescription Prosthetic devices with a prescription paid for by Medicare Prosthetic devices with a prescription reimbursed by Medicare Prosthetic devices with a prescription paid for by Medicaid Prosthetic devices with a prescription reimbursed by Medicaid Corrective eyeglasses without a prescription Corrective eyeglasses with a prescription Corrective eyeglasses with a prescription paid for by Medicare Corrective eyeglasses with a prescription reimbursed by Medicare Corrective eyeglasses with a prescription paid for by Medicaid Corrective eyeglasses with a prescription reimbursed by Medicaid Contact lenses without a prescription Contact lenses with a prescription SSTGB Form F0014 (Revised June 7, 2011)

Taxable

Exempt X X X X X X X X X X X X X X

13

STATE NAME: North Carolina Effective Date: 10/21/2011

Contact lenses with a prescription paid for by Medicare Contact lenses with a prescription reimbursed by Medicare Contact lenses with a prescription paid for by Medicaid Contact lenses with a prescription reimbursed by Medicaid Hearing aids without a prescription Hearing aids with a prescription Hearing aids with a prescription paid for by Medicare Hearing aids with a prescription reimbursed by Medicare Hearing aids with a prescription paid for by Medicaid Hearing aids with a prescription reimbursed by Medicaid Dental prosthesis without a prescription Dental prosthesis with a prescription Dental prosthesis with a prescription paid for by Medicare Dental prosthesis with a prescription reimbursed by Medicare Dental prosthesis with a prescription paid for by Medicaid Dental prosthesis with a prescription reimbursed by Medicaid

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
X X X X X X X X X X X X X X X X G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) G.S. 105-164.3(30b) & G.S. 105-164.13(12) Statute/Rule Cite/Comment G.S. 105-164.3(1a), G.S. 105-164.4(a)(4c), & G.S. 105-164.4C(a) G.S. 105-164.3(1a) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a)

Telecommunications & related products Ancillary Services

Taxable X

Exempt

Conference bridging service

SSTGB Form F0014 (Revised June 7, 2011)

14

STATE NAME: North Carolina Effective Date: 10/21/2011

Detailed telecommunications billing service X

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.3(1a) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(1a) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(1a) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(1a) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) Exempt Statute/Rule Cite/Comment G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48), G.S. 105-164.3(21) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(27) G.S. 105-164.4(a)(4c) & G.S. 105-164.4(a)(4d)

Directory assistance

Vertical service

Voice mail service

Telecommunications (Indicate how the options are treated in your state) Intrastate Telecommunications Service

Taxable X

Interstate Telecommunications Service

International Telecommunications Service

International 800 service

International 900 service

International fixed wireless service

International mobile wireless service

International prepaid calling service

SSTGB Form F0014 (Revised June 7, 2011)

15

STATE NAME: North Carolina Effective Date: 10/21/2011

International prepaid wireless calling service X

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.3(27) G.S. 105-164.4(a)(4c) & G.S. 105-164.4(a)(4d) G.S. 105-164.4C(h)(7) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(27) G.S. 105-164.4(a)(4c) & G.S. 105-164.4(a)(4d) G.S. 105-164.3(27) G.S. 105-164.4(a)(4c) & G.S. 105-164.4(a)(4d) G.S. 105-164.4C(h)(7) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48)

International private communications service

International value-added non-voice data service

International residential telecommunications service

Interstate 800 service

Interstate 900 service

Interstate fixed wireless service

Interstate mobile wireless service

Interstate prepaid calling service

Interstate prepaid wireless calling service

Interstate private communications service

Interstate value-added non-voice data service

Interstate residential telecommunications service

Intrastate 800 service SSTGB Form F0014 (Revised June 7, 2011)

16

STATE NAME: North Carolina Effective Date: 10/21/2011

Streamlined Sales Tax Governing Board Section 328 Taxability Matrix Library of Definitions
G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(27) G.S. 105-164.4(a)(4c) & G.S. 105-164.4(a)(4d) G.S. 105-164.3(27) G.S. 105-164.4(a)(4c) & G.S. 105-164.4(a)(4d) G.S. 105-164.4C(h)(7) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) G.S. 105-164.3(48) G.S. 105-164.4(a)(4c) & G.S. 105-164.4C(a) Sales & Use Tax Technical Bulletin 21-1 J.1.A.(7) G.S. 105-164.13(54) G.S. 105-164.13(54) Sales and Use Tax Technical Bulletin TB 211J.1b.(4) N/A

Intrastate 900 service

Intrastate fixed wireless service

Intrastate mobile wireless service

Intrastate prepaid calling service

Intrastate prepaid wireless calling service

Intrastate private communications service

Intrastate value-added non-voice data service

Intrastate residential telecommunications service

Paging service

Coin-operated telephone service Pay telephone service

X X

Local Service as defined by _________________(state)

SSTGB Form F0014 (Revised June 7, 2011)

17