GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1388

Short Title:  Uniform Taxes on Sales.	(Public)

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Sponsors: Representative Miller.

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Referred to:  Finance.

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April 29, 1999

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR UNIFORM TAX TREATMENT OF INTERSTATE AND INTRASTATE SALES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.8 reads as rewritten:
"§ 105-164.8. Retailer to collect tax regardless of place sale consummated; mail order sales subject to tax.
(a)	Every retailer engaged in business in this State as defined in this Article shall collect the tax even if one or more of the following conditions exist:
(1)	The purchaser's order or the contract of sale is delivered, mailed, or otherwise transmitted by the purchaser to the retailer at a point outside this State as a result of solicitation by the retailer through the medium of a catalogue or other advertisement.
(2)	The purchaser's order or the contract of sale is made or closed by acceptance or approval outside this State, or before the tangible personal property enters this State.
(3)	The purchaser's order or the contract of sale provides that the property shall be or is in fact procured or manufactured at a point outside this State and shipped directly to the purchaser from the point of origin.
(4)	The property is mailed to the purchaser in this State or a point outside this State or delivered to a carrier outside this State f.o.b. or otherwise and directed to the purchaser in this State regardless of whether the cost of transportation is paid by the retailer or by the purchaser.
(5)	The property is delivered directly to the purchaser at a point outside this State.
(6)	Any combination in whole or in part of any two or more of the foregoing conditions, if it is intended that the tangible personal property purchased be brought to this State for storage, use or consumption in this State.
(b)	A retailer who makes a mail order sale is engaged in business in this State and is subject to the tax levied under this Article if one or more of the following conditions are met:
(1)	The retailer is a corporation engaged in business under the laws of this State or a person domiciled in, a resident of, or a citizen of, this State.
(2)	The retailer or an affiliate of the retailer maintains retail establishments or offices in this State, whether the mail order sales thus subject to taxation by this State result from or are related in any other way to the activities of those establishments or offices.
(3)	The retailer has one or more representatives or agents in this State that solicit business or transact business on behalf of the retailer, whether the mail order sales thus subject to taxation by this State result from or are related in any other way to this solicitation or transaction of business.
(4)	Repealed by Session Laws 1991, c. 45, s. 16.
(5)	The retailer, by purposefully or systematically exploiting the market provided by this State by any media-assisted, media-facilitated, or media-solicited means, including direct mail advertising, distribution of catalogs, computer-assisted shopping, television, radio or other electronic media, telephone solicitation, magazine or newspaper advertisements, or other media, creates nexus with this State.
(6)	Through compact or reciprocity with another jurisdiction of the United States, that jurisdiction uses its taxing power and its jurisdiction over the retailer in support of this State's taxing power.
(7)	The retailer consents, expressly or by implication, to the imposition of the tax imposed by this Article.  For purposes of this subdivision, evidence that a retailer engaged in the activity described in subdivision (5) shall be prima facie evidence that the retailer consents to the imposition of the tax imposed by this Article.
(8)	The retailer maintains an Internet web site on a server located in this State.
(9)	The retailer places data, known as ‘cookies', on a purchaser's web site located in this State."
Section 2.  G.S. 105-164.3(2) reads as rewritten:
"(20)	Tangible personal property. – Personal property that may be seen, weighed, measured, felt, or touched or is in any other manner perceptible to the senses. The term does not include stocks, bonds, notes, insurance, or other obligations or securities, nor does it include water delivered by or through main lines or pipes either for commercial or domestic use or consumption. The term includes computer software."
Section 3.  This act becomes effective October 1, 1999, and applies to sales made on or after that date.