52.229-2 North Carolina State and Local

Sales and Use Tax.

As prescribed in 29.401-2 , insert the following clause in solicitations and contracts for construction

to be performed in North Carolina:

North Carolina State and Local Sales and Use Tax (Apr 1984)

(a) "Materials," as used in this clause, means building materials, supplies, fixtures, and equipment

that become a part of or are annexed to any building or structure erected, altered, or repaired under

this contract.

(b) If this is a fixed-price contract, the contract price includes North Carolina State and local sales

and use taxes to be paid on materials, notwithstanding any other provision of this contract. If this is

a cost-reimbursement contract, any North Carolina State and local sales and use taxes paid by the

Contractor on materials shall constitute an allowable cost under this contract.

(c) At the time specified in paragraph (d) of this section, the Contractor shall furnish the Contracting

Officer certified statements setting forth the cost of the materials purchased from each vendor and

the amount of North Carolina State and local sales and use taxes paid. In the event the Contractor

makes several purchases from the same vendor, the certified statement shall indicate the invoice

numbers, the inclusive dates of the invoices, the total amount of the invoices, and the North Carolina

State and local sales and use taxes paid. The statement shall also include the cost of any tangible

personal property withdrawn from the Contractor’s warehouse stock and the amount of North

Carolina State and local sales or use tax paid on this property by the Contractor. Any local sales or

use taxes included in the Contractor’s statements must be shown separately from the State sales or

use taxes. The Contractor shall furnish any additional information the Commissioner of Revenue of

the State of North Carolina may require to substantiate a refund claim for sales or use taxes. The

Contractor shall also obtain and furnish to the Contracting Officer similar certified statements by its

subcontractors.

(d) If this contract is completed before the next October 1, the certified statements to be furnished

pursuant to paragraph (c) of this clause shall be submitted within 60 days after completion. If this

contract is not completed before the next October 1, the certified statements shall be submitted on

or before November 30 of eachyear and shall cover taxes paid during the 12-month period that

ended the preceding September 30.

(e) The certified statements to be furnished pursuant to paragraph (c) of this clause shall be in the

following form:

I hereby certify that during the period ______ to _____ [insert dates], ____ [insert name of Contractor

or subcontractor] paid North Carolina State and local sales and use taxes aggregating $______

(State) and $______ (local), with respect to building materials, supplies, fixtures, and equipment that

have become a part of or annexed to a building or structure erected, altered, or repaired by

_________ [insert name of Contractor or subcontractor] for the United States of America, and that the

vendors from whom the property was purchased, the dates and numbers of the invoices covering the

purchases, the total amount of the invoices of each vendor, the North Carolina State and local sales

and use taxes paid on the property (shown separately), and the cost of property withdrawn from

warehouse stock and North Carolina State and local sales or use taxes paid on this property are as
set forth in the attachments.

(End of clause)

Alternate I (Apr 1984). If the requirement is for vessel repair to be performed in North Carolina,

substitute the following paragraph (a) for paragraph (a) of the basic clause:

(a) "Materials," as used in this clause, means materials, supplies, fixtures, and equipment that

become a part of or are annexed to any vessel altered or repaired under this contract.

Parent topic: 52.229 [Reserved]