(A) Shipping. All invoices must contain FOB destination as they only shipping option for goods. FOB destination means that the shipper owns the goods in transit and title passes to the recipient at the recipient's dock. The shipper is responsible for filing claims if necessary, for loss or damage of goods.
(B) NC sales and use tax.
(1) Sections 36 and 37 of the sales and use tax bulletins (SUTB) create different sales tax rules for different types of governments.
(2) The federal government is exempt from paying sales taxes on its purchases and from charging sales taxes on (most of) its sales.
(3) The North Carolina State Government is exempt from paying sales taxes on (most of) its purchases but must charge sales taxes on its sales of tangible goods.
(4) (a) Local governments (includes the Town of Wilkesboro) must pay sales taxes on taxable purchases SUTB § 37-1(A) but request refunds from NC Dept. of Revenue (DOR) at the end of the year for most sales taxes paid. Just like the state, local governments must charge sales taxes on their own sales of tangible goods SUTB § 37-1(C). But note that if a local government purchases tangible property for resale, the local government is not required to pay sales taxes on its initial purchase.
(b) This table summarizes these different rules:
Type of Government | Purchases | Sales |
Federal | Exempt | Exempt (if made to authorized purchasers) |
North Carolina | Exempt (mostly) | Taxable |
Counties, towns, cities, and other municipalities | Taxable (but mostly refundable) | Taxable |
For more information, see: https://canons.sog.unc.edu/sales-tax-101-for-local- governments/ or the NC DOR website: https://www.ncdor.gov/documents/sales-and-use-tax-bulletins | ||
(Res. 2020-16, passed 8-3-2020)