reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2 - Privilege Taxes. › § 105-103 - Unlawful to operate without license.

§ 105-103. Unlawful to operate without license.
When a license tax is required by law, and whenever the General Assembly shall levy a license tax on any business, trade, employment, or profession, or for doing any act, it shall be unlawful for any person, firm, or corporation without a license to engage in such business, trade, employment, profession, or do the act; and when such tax is imposed it shall be lawful to grant a license for the business, trade, employment, or for doing the act; and no person, firm, or corporation shall be allowed the privilege of exercising any business, trade, employment, profession, or the doing of any act taxed in this schedule throughout the State under one license, except under a statewide license. (1939, c. 158, s. 181; 1998-98, s. 41.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2 - Privilege Taxes. › § 105-105 - Persons, firms, and corporations engaged in more than one business to pay tax on each.

§ 105-105. Persons, firms, and corporations engaged in more than one business to pay tax on each.
Where any person, firm, or corporation is engaged in more than one business, trade, employment, or profession which is made under the provisions of this Article subject to State license taxes, such persons, firms, or corporations shall pay the license tax prescribed in this Article for each separate business, trade, employment, or profession. (1939, c. 158, s. 183.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2 - Privilege Taxes. › § 105-106 - Effect of change in name of firm.

§ 105-106. Effect of change in name of firm.
No change in the name of a firm, partnership, or corporation, nor the taking in of a new partner, nor the withdrawal of one or more of the firm, shall be considered as commencing business; but if any one or more of the partners remain in the firm, or if there is change in ownership of less than a majority of the stock, if a corporation, the business shall be regarded as continuing. (1939, c. 158, s. 184.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2 - Privilege Taxes. › § 105-108 - Property used in a licensed business not exempt from taxation.

§ 105-108. Property used in a licensed business not exempt from taxation.
A State license, issued under any of the provisions of this Article shall not be construed to exempt from other forms of taxation the property employed in such licensed business, trade, employment, or profession. (1939, c. 158, s. 186.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2 - Privilege Taxes. › § 105-109 - Obtaining license and paying tax.

§ 105-109. Obtaining license and paying tax.
(a) Repealed by Session Laws 1998-95, s. 13, effective July 1, 1999.
(b) License Required. – Before a person may engage in a business, trade, or profession for which a license is required under this Article, the person must be licensed by the Department. To obtain a license, a person must submit an application to the Department for the license and pay the required tax. An application for a license is considered a return.
The Department must issue a license to a person who files a completed application and pays the required tax. A license must be displayed conspicuously at the location of the licensed business, trade, or profession.
(c) Repealed by Session Laws 1998-212, s. 29A.14(a), effective January 1, 1999.
(d) Penalties. – The penalties in G.S. 105-236 apply to this Article. The Secretary may collect a tax due under this Article in any manner allowed under Article 9 of this Chapter.
(e) Repealed by Session Laws 2014-3, s. 12.3(b), effective July 1, 2015. See note for applicability. (1939, c. 158, s. 187; 1957, c. 859; 1963, c. 294, s. 5; 1973, c. 108, s. 51; c. 476, s. 193; 1993, c. 539, ss. 698, 699; 1994, Ex. Sess., c. 24, s. 14(c); 1998-95, s. 13; 1998-212, s. 29A.14(a); 2007-491, s. 7; 2014-3, s. 12.3(b).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.2 - Short title.

§ 105-113.2. Short title.
This Article may be cited as the "Tobacco Products Tax Act" or "Tobacco Products Tax Article." (1969, c. 1075, s. 2; 1991, c. 689, s. 266; 1998-98, s. 56.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.3 - Scope of tax; administration.

§ 105-113.3. Scope of tax; administration.
(a) Scope. – The taxes imposed by this Article shall be collected only once on the same tobacco product. Except as permitted by Article 2 of this Chapter, a city or county may not levy a privilege license tax on the sale of tobacco products.
(b) Administration. – Article 9 of this Chapter applies to this Article. (1969, c. 1075, s. 2; 1991, c. 689, s. 268; 1998-212, s. 29A.14(d).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4C - Enforcement of Master Settlement Agreement Provisions.

§ 105-113.4C. Enforcement of Master Settlement Agreement Provisions.
The Master Settlement Agreement between the states and the tobacco product manufacturers, incorporated by reference into the consent decree referred to in G.S. 143-710, requires each state to diligently enforce Article 37 of Chapter 66 of the General Statutes. The Office of the Attorney General and the Secretary of Revenue shall perform the following responsibilities in enforcing Article 37:
(1) The Office of the Attorney General must give to the Secretary of Revenue a list of the nonparticipating manufacturers under the Master Settlement Agreement and the brand names of the products of the nonparticipating manufacturers.
(2) The Office of the Attorney General must update the list provided under subdivision (1) of this section when a nonparticipating manufacturer becomes a participating manufacturer, another nonparticipating manufacturer is identified, or more brands or products of nonparticipating manufacturers are identified.
(3) The Secretary of Revenue must require the taxpayers of the tobacco excise tax to identify the amount of tobacco products of nonparticipating manufacturers sold by the taxpayers, and may impose this requirement as provided in G.S. 66-290(10).
(4) The Secretary of Revenue must determine the amount of State tobacco excise taxes attributable to the products of nonparticipating manufacturers, based on the information provided by the taxpayers, and must report this information to the Office of the Attorney General. (1999-311, s. 2; 2020-78, s. 6.2(c).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4D - Tax with respect to inventory on effective date of tax increase.

§ 105-113.4D. Tax with respect to inventory on effective date of tax increase.
Every person subject to the taxes levied in this Article who, on the effective date of a tax increase under this Article, has on hand any tobacco products must file a complete inventory of the tobacco products within 20 days after the effective date of the increase, and must pay an additional tax to the Secretary when filing the inventory. The amount of tax due is the amount due based on the difference between the former tax rate and the increased tax rate. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1991, c. 689, s. 263; 2009-451, s. 27A.5(b).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4E - Modified risk tobacco products.

§ 105-113.4E. Modified risk tobacco products.
(a) Definition. – The term "modified risk tobacco product" means a tobacco product that is sold or distributed for use to reduce harm or the risk of tobacco-related disease associated with commercially marketed tobacco products.
(b) Tax Rate Reduction. – The tax imposed under this Article is reduced by the following:
(1) Fifty percent (50%) for a modified risk tobacco product issued a risk modification order by the United States Food and Drug Administration under 21 U.S.C. § 387k(g)(1).
(2) Twenty-five percent (25%) for a modified risk tobacco product issued an exposure modification order by the United States Food and Drug Administration under 21 U.S.C. § 387k(g)(2).
(c) Substantiation. – Generally, tobacco products are subject to the tax imposed under this Article, unless a manufacturer substantiates that a product qualifies as a modified risk tobacco product and is subject to a reduced rate of tax in accordance with subsection (b) of this section. A manufacturer may substantiate that a product qualifies as a modified risk tobacco product by providing the Department a copy of the order issued by the United States Food and Drug Administration verifying the product as a modified risk tobacco product. Once the manufacturer provides the order to the Department, the Department must reduce the tax due as required under subsection (b) of this section effective on the first day of the next calendar month. If the order indicating a product qualifies as a modified risk tobacco product is renewed, the manufacturer must provide the order renewing the product to the Department within 14 days of receipt.
(d) Forfeiture. – If the product no longer qualifies as a modified risk tobacco product, the rate reduction under subsection (b) of this section is forfeited. A product no longer qualifies when the order qualifying the product as a modified risk tobacco product expires and is not renewed or the order is withdrawn by the United States Food and Drug Administration. The manufacturer must provide notice of such expiration or withdrawal to the Department within 14 days of receipt. Upon determination by the Department that the product no longer qualifies as a modified risk tobacco product, the Department must determine if the taxpayer paid a reduced rate after the order expired or was withdrawn. If the taxpayer did avoid taxes, the taxpayer is liable for all past taxes avoided as a result of the product no longer qualifying plus interest at the rate established under G.S. 105-241.21, computed from the date the taxes would have been due if the rate reduction had not been allowed. The past taxes and interest are due 30 days after the date the rate reduction is forfeited; a taxpayer that fails to pay the past taxes and interest by the due date is subject to the penalties provided in G.S. 105-236. (2018-5, s. 38.7(a); 2020-58, s. 2.4.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4F - Delivery sales of certain tobacco products; age verification.

§ 105-113.4F. Delivery sales of certain tobacco products; age verification.
(a) Scope. – This section applies to delivery sales. For purposes of this section, the term "tobacco product" means cigarettes, smokeless tobacco, or vapor products.
(b) Delivery Seller Requirements. – A delivery seller must do all of the following with respect to a delivery sale:
(1) Obtain a license from the Secretary as required by this Article before accepting an order.
(2) Comply with the age verification requirements in G.S. 14-313(b2).
(3) Report, collect, and remit to the Secretary all applicable taxes as set out in this Article and Article 5 of this Chapter.
(c) Filing Requirement. – A delivery seller who has made a delivery sale, or shipped or delivered tobacco products in connection with a delivery sale, for which tax is due under this Article, during the previous month must, not later than the tenth day of each month, file with the Secretary a memorandum or a copy of the invoice for every delivery sale made during the previous month. A delivery seller who complies with 15 U.S.C. § 376 with respect to tobacco products covered by that section is considered to have complied with this subsection. The memorandum or invoice must contain the following information:
(1) The name, address, telephone number, and e-mail address of the consumer.
(2) The type and the brand, or brands, of tobacco products that were sold.
(3) The quantity of tobacco products that were sold.
(d) Penalties. – A person who violates this section is subject to the following penalties:
(1) For the first violation, a penalty of one thousand dollars ($1,000).
(2) For a subsequent violation, a penalty not to exceed five thousand dollars ($5,000), as determined by the Secretary.
(e) Repealed by Session Laws 2021-180, s. 42.9(b), effective July 1, 2022, and applicable to sales or purchases occurring on or after that date.
(f) Delivery Sellers as Retailers. – A delivery seller that meets the definition of a "retailer" as defined in Article 5 of this Chapter is subject to all State laws that apply to a retailer in this State. (2019-169, s. 4.7(b); 2021-180, s. 42.9(b); 2023-12, s. 3.4(a).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4G - Records to be kept.

§ 105-113.4G. Records to be kept.
(a) Requirement. – Every person required to be licensed under this Article and every person required to make reports under this Article shall keep complete and accurate records of all purchases, inventories, sales, shipments, and deliveries of tobacco products, and other information as required by the Secretary. The records shall be in the form prescribed by the Secretary and shall be open at all times for inspection by the Secretary or an authorized representative of the Secretary.
(b) Time Period. – These records shall be safely preserved for the applicable period of statute of limitations as set forth in Article 9 of this Chapter in a manner to ensure their security and accessibility for inspection by the Department. If the records apply to a transaction not required to be reported in a return, the records shall be kept for three years from the date of the transaction. (2020-58, s. 2.5(a); 2023-12, s. 3.5(a).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4H - Federal Constitution and statutes.

§ 105-113.4H. Federal Constitution and statutes.
Any activities which this Article may purport to tax in violation of the Constitution of the United States or any federal statute are hereby expressly exempted from taxation under this Article. (1969, c. 1075, s. 2; recodified from N.C. Gen. Stat. § 105-113.8 by 2021-180, s. 42.13E(a).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4I - Licenses required.

§ 105-113.4I. Licenses required.
A person may not engage in business as a distributor, wholesale dealer, or retail dealer in this State, without having first obtained from the Secretary the appropriate license for that purpose as prescribed in this Article. A license required by this Article is in addition to any other licenses that may be required by law. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; recodified from N.C. Gen. Stat. § 105-113.11 by 2021-180, s. 42.13E(b), (c).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4J - Unlicensed place of business.

§ 105-113.4J. Unlicensed place of business.
It is unlawful for a person to maintain a place of business within this State required by this Article to be licensed to engage in the business of selling, offering for sale, or possessing with the intent to sell tobacco products without first obtaining all licenses required by this Article. (1969, c. 1075, s. 2; 2017-39, s. 10; 2019-169, s. 4.14(a); recodified from N.C. Gen. Stat. § 105-113.29 by 2021-180, s. 42.13E(d), (e).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4K - Criminal penalties.

§ 105-113.4K. Criminal penalties.
Any person who violates any of the provisions of this Article for which no other punishment is specifically prescribed shall be guilty of a Class 1 misdemeanor. (1969, c. 1075, s. 2; 1993, c. 539, s. 700; 1994, Ex. Sess., c. 24, s. 14(c); recodified from N.C. Gen. Stat. § 105-113.33 by 2021-180, s. 42.13E(f).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.4L - Federal tobacco tax reporting.

§ 105-113.4L. Federal tobacco tax reporting.
A person required to be licensed under this Article and who files a report with the Department in accordance with 15 U.S.C. § 376 must file in the form required by the Secretary. (2022-13, s. 4.1.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.5 - (Effective until July 1, 2022) Tax on cigarettes.

§ 105-113.5. (Effective until July 1, 2022) Tax on cigarettes.
(a) Rate. – A tax is levied on the sale or possession for sale in this State, by a licensed distributor, of all cigarettes at the rate of two and one-fourth cents (2.25¢) per individual cigarette.
(b) Primary Liability. – The licensed distributor who first acquires or otherwise handles cigarettes subject to the tax imposed by this section is liable for the tax imposed by this section. A licensed distributor who brings into this State cigarettes made outside the State is the first person to handle the cigarettes in this State. A licensed distributor who is the original consignee of cigarettes made outside the State and is shipped into the State is the first person to handle the cigarettes in this State. (1969, c. 1075, s. 2; c. 1246, s. 1; 1991, c. 689, s. 262; 2004-170, s. 5; 2005-276, s. 34.1(a), (b); 2009-451, s. 27A.5(a); 2019-169, s. 4.1(e).)
§ 105-113.5. (Effective July 1, 2022) Tax on cigarettes.
(a) Rate. – A tax is levied on the sale or possession for sale in this State, by a licensed distributor, of all cigarettes at the rate of two and one-fourth cents (2.25¢) per individual cigarette.
(b) Primary Liability. – A licensed distributor who meets any of the following conditions is liable for the tax imposed by this section:
(1) Is the first person to possess or acquire cigarettes in this State.
(2) Is the first person to bring into this State cigarettes made outside the State.
(3) Is the original consignee of cigarettes made outside the State that are shipped into the State.
(4) Makes a delivery sale of cigarettes for which the delivery seller is required to collect sales and use tax under Article 5 of this Chapter. (1969, c. 1075, s. 2; c. 1246, s. 1; 1991, c. 689, s. 262; 2004-170, s. 5; 2005-276, s. 34.1(a), (b); 2009-451, s. 27A.5(a); 2019-169, s. 4.1(e); 2021-180, s. 42.9(c).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.6 - Use tax levied.

§ 105-113.6. Use tax levied.
A tax is levied upon the sale or possession for sale by a person other than a licensed distributor, and upon the use, consumption, and possession for use or consumption of cigarettes within this State at the rate set in G.S. 105-113.5. This tax does not apply, however, to cigarettes upon which the tax levied in G.S. 105-113.5 has been paid. (1969, c. 1075, s. 2; 1993, c. 442, s. 2; 2019-6, s. 4.1.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › §§ 105-113.7: Recodified as G.S. 105-113.4D by Session Laws 2009-451, s. 27A.5(b), effective September 1, 2009.

§ 105-113.7: Recodified as G.S. 105-113.4D by Session Laws 2009-451, s. 27A.5(b), effective September 1, 2009.
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › §§ 105-113.8. Recodified as G.S. 105-113.4H, effective November 18, 2021.

§ 105-113.8. Recodified as G.S. 105-113.4H, effective November 18, 2021. (1969, c. 1075, s. 2; recodified as N.C. Gen. Stat. 105-113.4H by 2021-180, s. 42.13E(a).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.9 - Out-of-state shipments.

§ 105-113.9. Out-of-state shipments.
Any licensed distributor engaged in interstate business shall be permitted to set aside part of the stock as necessary to conduct interstate business without paying the tax otherwise required by this Part, but only if the licensed distributor complies with the requirements prescribed by the Secretary concerning keeping of records, making of reports, posting of bond, and other matters for administration of this Part.
"Interstate business" as used in this section means:
(1) The sale of cigarettes to a nonresident where the cigarettes are delivered by the licensed distributor to the business location of the nonresident purchaser in another state.
(2) The sale of cigarettes to a nonresident purchaser who has no place of business in North Carolina and who purchases the cigarettes for the purposes of resale not within this State and where the cigarettes are delivered to the purchaser at the business location in North Carolina of the licensed distributor who is also licensed as a distributor under the laws of the state of the nonresident purchaser. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1977, c. 874; 1993, c. 442, s. 3; 2018-5, s. 38.6(a); 2019-6, s. 4.2.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.10 - Manufacturers exempt from paying tax.

§ 105-113.10. Manufacturers exempt from paying tax.
(a) Shipping to Other Licensed Distributors. – A licensed manufacturer shipping cigarettes to other distributors who are licensed under G.S. 105-113.12 may, upon application to the Secretary and upon compliance with requirements prescribed by the Secretary, be relieved of paying the taxes levied in this Part, but is not relieved from filing a report as required by this Part.
(a1) Shipping to Retailers. – No manufacturer may be relieved of the requirement to be licensed as a distributor in order to make shipments, including drop shipments, to a retail dealer or ultimate user.
(b) Shipping for Affiliated Manufacturer. – A manufacturer may, upon application to the Secretary and upon compliance with requirements prescribed by the Secretary, be relieved of paying the taxes levied in this Part on cigarettes that are manufactured by an affiliated manufacturer and temporarily stored at and shipped from its facilities, but is not relieved from filing a report as required by this Part. (1969, c. 1075, s. 2; c. 1246, s. 2; 1973, c. 476, s. 193; 1975, c. 275, s. 2; 1993, c. 442, s. 4; 2011-330, s. 2(b); 2019-169, s. 4.1(d).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › §§ 105-113.11. Recodified as G.S. 105-113.4I, effective November 18, 2021.

§ 105-113.11. Recodified as G.S. 105-113.4I, effective November 18, 2021. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; recodified as N.C. Gen. Stat. 105-113.4I by 2021-180, s. 42.13E(b).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.12 - License required.

§ 105-113.12. License required.
(a) A distributor must obtain a license for each of the locations listed in this subsection, as applicable, and must pay a tax of twenty-five dollars ($25.00) for each license. A license is in effect until June 30 of the year following the second calendar year after the date of issuance or renewal. A license is renewable upon signed application with no renewal license tax, unless applied for after the June 30 expiration date. The locations are:
(1) Each location where a distributor receives or stores non-tax-paid cigarettes in this State.
(2) For a distributor that is a delivery seller, each location from which the distributor receives or stores non-tax-paid cigarettes for delivery sales of cigarettes if the location is a location other than the location described in subdivision (1) of this subsection.
(b) Repealed by Session Laws 2021-180, s. 42.9(d), effective July 1, 2022, and applicable to sales or purchases occurring on or after that date.
(c) An out-of-state distributor that is not a delivery seller may obtain a distributor's license upon compliance with the provisions of G.S. 105-113.4A and G.S. 105-113.24 and payment of a tax of twenty-five dollars ($25.00). (1969, c. 1075, s. 2; 1991 (Reg. Sess., 1992), c. 955, s. 4; 1993, c. 442, s. 5; 2019-169, s. 4.2(c); 2021-180, s. 42.9(d); 2023-12, s. 3.6.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.13 - Secretary may require a bond or irrevocable letter of credit.

§ 105-113.13. Secretary may require a bond or irrevocable letter of credit.
(a) Repealed by Session Laws 2013-414, s. 22(c), effective September 1, 2013.
(b) The Secretary may require a licensed distributor to furnish a bond in an amount that adequately protects the State from a licensed distributor's failure to pay taxes due under this Part. A bond must be conditioned on compliance with this Part, payable to the State, and in the form required by the Secretary. The amount of the bond is two times the licensed distributor's average expected monthly tax liability under this Article, as determined by the Secretary, provided the amount of the bond may not be less than two thousand dollars ($2,000) and may not be more than two million dollars ($2,000,000). The Secretary should periodically review the sufficiency of bonds required of the licensed distributor and increase the required bond amount if the amount no longer covers the anticipated tax liability of the licensed distributor and decrease the amount if the Secretary finds that a lower bond amount will protect the State adequately from loss.
For purposes of this section, a licensed distributor may substitute an irrevocable letter of credit for the secured bond required by this section. The letter of credit must be issued by a commercial bank acceptable to the Secretary and available to the State as a beneficiary. The letter of credit must be in a form acceptable to the Secretary, conditioned upon compliance with this Article, and in the amounts stipulated in this section. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1991 (Reg. Sess., 1992), c. 955, s. 5; 1993, c. 442, s. 6; 2013-414, s. 22(c); 2014-3, s. 9.1(a); 2016-5, s. 4.1(a); 2019-6, s. 4.3; 2020-58, s. 2.6(a).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.17 - Identification of dispensers.

§ 105-113.17. Identification of dispensers.
Each vending machine that dispenses cigarettes must be marked to identify its owner in the manner required by the Secretary. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1991 (Reg. Sess., 1992), c. 955, s. 8.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.21 - Discount; refund.

§ 105-113.21. Discount; refund.
(a) Repealed by Session Laws 2003-284, s. 45A.1(a), effective for reporting periods beginning on or after August 1, 2003.
(a1) Discount. – A licensed distributor who files a timely report under G.S. 105-113.18 and who sends a timely payment may deduct from the amount due with the report a discount of two percent (2%). This discount covers expenses incurred in preparing the records and reports required by this Part, and the expense of furnishing a bond.
(b) Refund. – A licensed distributor in possession of packages of stale or otherwise unsalable cigarettes upon which the tax has been paid may return the cigarettes to the manufacturer as provided in this subsection and apply to the Secretary for refund of the tax. The application shall be in the form prescribed by the Secretary and shall be accompanied by an affidavit from the manufacturer stating the number of cigarettes returned to the manufacturer by the applicant. The Secretary shall refund the tax paid, less the discount allowed, on the unsalable cigarettes. The licensed distributor must return the cigarettes to the manufacturer of the cigarettes or to the affiliated manufacturer who is contracted by the manufacturer of the cigarettes to serve as the manufacturer's agent for the purposes of validating quantities and disposing of unsalable cigarettes. (1969, c. 1075, s. 2; cc. 1222, 1238; 1973, c. 476, s. 193; 1993, c. 442, s. 9; 2001-414, s. 3; 2003-284, s. 45A.1(a); 2004-84, s. 2(a); 2011-330, s. 2(c); 2019-169, s. 4.1(c).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.24 - Out-of-State distributors to register and remit tax.

§ 105-113.24. Out-of-State distributors to register and remit tax.
(a) The Secretary may authorize any distributor outside this State engaged in the business of selling and shipping cigarettes into the State to obtain a license and report and pay taxes required by this Part.
(b) A nonresident distributor must agree to submit the distributor's books, accounts, and records to reasonable examination by the Secretary or the Secretary's duly authorized agents. The Secretary may require a nonresident distributor to file a bond in accordance with G.S. 105-113.13.
(c) Each such nonresident distributor, other than a foreign corporation which has qualified with the Secretary of State as doing business in this State shall, by a duly executed instrument filed in the office of the Secretary of State, constitute and appoint the Secretary of State his lawful attorney in fact upon whom any original process in any action or legal proceeding against such nonresident distributor arising out of any matter relating to this Article may be served, and therein agree that any original process against him so served shall be of the same force and effect as if served on him within this State, and that the authority thereof shall continue in force irrevocably so long as any such nonresident distributor shall remain liable for any taxes, interest and penalties under this Article.
(d) Any nonresident distributor who shall comply with the provisions of this section may be licensed as a distributor. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1991 (Reg. Sess., 1992), c. 955, s. 9; 1993, c. 442, ss. 9.1(a), 9.1(b).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.27 - Non-tax-paid cigarettes.

§ 105-113.27. Non-tax-paid cigarettes.
(a) Except as otherwise provided in this Article, licensed distributors shall not sell, borrow, loan, or exchange non-tax-paid cigarettes to, from, or with other licensed distributors.
(b) Except as otherwise provided in this Article, no person shall sell or offer for sale non-tax-paid cigarettes.
(c) The possession of more than six hundred cigarettes on which tax has been paid to another state or country, by any person other than a licensed distributor, is prima facie evidence that the cigarettes are possessed in violation of this Part. (1969, c. 1075, s. 2; 1993, c. 442, s. 11; 1999-337, s. 18; 2020-58, s. 2.7.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › §§ 105-113.29. Recodified as G.S. 105-113.4J, effective November 18, 2021.

§ 105-113.29. Recodified as G.S. 105-113.4J, effective November 18, 2021. (1969, c. 1075, s. 2; 2017-39, s. 10; 2019-169, s. 4.14(a); recodified as N.C. Gen. Stat. 105-113.4J by 2021-180, s. 42.13E(d).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.30 - Records and reports.

§ 105-113.30. Records and reports.
It shall be unlawful for any person who is required under the provisions of this Article to keep records or make reports, to fail to keep such records, refuse to keep such reports, make false entries in such records, fail to produce such records for inspection by the Secretary or his duly authorized agents, fail to file a report, or make a false or fraudulent report or statement. (1969, c. 1075, s. 2; 1973, c. 476, s. 193.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.32 - Non-tax-paid cigarettes subject to confiscation.

§ 105-113.32. Non-tax-paid cigarettes subject to confiscation.
All non-tax-paid cigarettes subject to the tax imposed by this Part, together with any container in which they are stored or displayed for sale (including but not limited to vending machines), are declared to be contraband goods and may be seized by any officer of the law. The officer shall arrest any person in charge of the contraband goods and shall at once proceed against the person arrested, under the provisions of this Part, in any court having competent jurisdiction. The disposition of the seized cigarettes and container shall be governed by the provisions of G.S. 105-113.31. (1969, c. 1075, s. 2; 1993, c. 442, s. 13.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › §§ 105-113.33. Recodified as G.S. 105-113.4K, effective November 18, 2021.

§ 105-113.33. Recodified as G.S. 105-113.4K, effective November 18, 2021. (1969, c. 1075, s. 2; 1993, c. 539, s. 700; 1994, Ex. Sess., c. 24, s. 14(c); recodified as N.C. Gen. Stat. 105-113.4K by 2021-180, s. 42.13E(f).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.35B - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Applicability.

§ 105-113.35B. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Applicability.
As used in this Part, the term "tobacco product" means a tobacco product other than cigarettes. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.36A - Tax rates; liability for tax.

§ 105-113.36A. Tax rates; liability for tax.
(a) Tax Imposed. – An excise tax is levied on the sale, use, consumption, handling, or distribution of tobacco products at the following rates:
(1) On vapor products, the rate of five cents (5¢) per fluid milliliter of consumable product. All invoices for vapor products issued by manufacturers must state the amount of consumable product in milliliters.
(2) On cigars, the rate of twelve and eight-tenths percent (12.8%) of the cost price, subject to a cap of thirty cents (30¢) per cigar.
(3) On all other tobacco products, the rate of twelve and eight-tenths percent (12.8%) of the cost price.
(b) Primary Liability for Tax. – A wholesale dealer that has not been relieved of paying tax under G.S. 105-113.37A or a retail dealer is primarily liable for the tax imposed by this section if the dealer meets any of the following conditions:
(1) Is the first person to possess or acquire the tobacco product in this State.
(2) Is the first person to bring a tobacco product made outside the State into this State.
(3) Is the original consignee of a tobacco product made outside the State that is shipped into the State.
(4) Makes a remote sale or a delivery sale for which the dealer is required to collect sales and use tax under Article 5 of this Chapter.
(c) Secondary Liability. – A retail dealer located in this State who acquires from a wholesale dealer non-tax-paid tobacco products subject to the tax imposed by this section is liable for any tax due on the tobacco products.
(d) Exemptions. – The taxes imposed under this section do not apply to the following:
(1) A tobacco product sold outside the State.
(2) A tobacco product sold to the federal government.
(3) A sample tobacco product distributed without charge. A sample tobacco product may only be distributed in a "qualified adult-only facility" as that term is defined in 21 C.F.R. § 1140.16(d)(2).
(e) Use Tax. – A tax is levied upon the sale or possession for sale by a person other than a licensed wholesale dealer or a licensed retail dealer and upon the use, consumption, or possession for use or consumption of tobacco products within this State at the rate set in this section. This tax does not apply to tobacco products for which the tax levied in this section has been paid.
(f) Documentation. – If a person liable for the tax imposed by this Part cannot produce to the Secretary's satisfaction documentation of the cost price of the items subject to tax, the Secretary may determine a value based on either of the following:
(1) The cost price of comparable items.
(2) The average of the actual price paid by the person liable for the tax for the item over the 12 calendar months before January 1 of the year in which the sale occurs. (2021-180, s. 42.9(g); 2023-12, s. 3.2(b).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.37A - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Manufacturer's option.

§ 105-113.37A. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Manufacturer's option.
(a) Shipping to Other Licensed Dealers. – A manufacturer who is not a retail dealer and who ships tobacco products to either a wholesale dealer or a retail dealer licensed under this Part may, upon application to the Secretary and upon compliance with requirements prescribed by the Secretary, be relieved of paying the tax on tobacco products imposed by this Part but is not relieved from filing a report as required by this Part.
(b) Integrated Wholesale Dealers. – If a manufacturer has been relieved of paying tax under this section, the permission granted to be relieved of paying the tax also applies to an integrated wholesale dealer with whom the manufacturer is an affiliate. A manufacturer must notify the Secretary of any integrated wholesale dealer with whom it is an affiliate when the manufacturer applies to the Secretary for permission to be relieved of paying the tax and when an integrated wholesale dealer becomes an affiliate of the manufacturer after the Secretary has given the manufacturer permission to be relieved of paying the tax.
(c) Dual Exemption. – If a person is both a manufacturer of cigarettes and a wholesale dealer of tobacco products, and the person is granted permission under G.S. 105-113.10 to be relieved of paying the cigarette excise tax, the permission applies to the tax imposed by this Part on tobacco products. A cigarette manufacturer who becomes a wholesale dealer after receiving permission to be relieved of the cigarette excise tax must notify the Secretary of the permission received under G.S. 105-113.10 when applying for a license as a wholesale dealer. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.37B - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Non-tax-paid products.

§ 105-113.37B. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Non-tax-paid products.
Except as otherwise provided in this Part, a licensed wholesale dealer may not sell, borrow, loan, or exchange non-tax-paid tobacco products to, from, or with another licensed wholesale dealer, and an integrated wholesale dealer may not sell, borrow, loan, or exchange non-tax-paid tobacco products to, from, or with another integrated wholesale dealer. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.37C - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Discount; refund.

§ 105-113.37C. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Discount; refund.
(a) Discount. – A wholesale dealer or a retail dealer who is primarily liable for the excise taxes imposed by this Part, who files a timely report under this Part, and who sends a timely payment may deduct from the amount due with the report a discount of two percent (2%). This discount covers expenses incurred in preparing the records and reports required by this Part and the expense of furnishing a bond. This subsection does not apply with respect to the excise tax levied on vapor products.
(b) Refund. – A wholesale dealer or retail dealer who is primarily liable for the excise taxes imposed by this Part and is in possession of stale or otherwise unsalable tobacco products upon which the tax has been paid may return the tobacco products to the manufacturer and apply to the Secretary for refund of the tax. The application must be in the form prescribed by the Secretary and accompanied by a written certificate signed under penalty of perjury or an affidavit from the manufacturer listing the tobacco products returned to the manufacturer by the applicant. The Secretary must refund the tax paid, less the discount allowed, on the listed products. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.38A - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Remote seller requirements.

§ 105-113.38A. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Remote seller requirements.
A remote seller must do all of the following with respect to a remote sale:
(1) Obtain a license from the Secretary as required by this Part before accepting an order.
(2) Report, collect, and remit to the Secretary all applicable taxes as set out in this Part and Article 5 of this Chapter. A remote seller that meets the definition of a "retailer" as defined in Article 5 of this Chapter is subject to all State laws that apply to a retailer in this State. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.38B - Records.

§ 105-113.38B. Records.
In addition to the records required to be kept under G.S. 105-113.4G, a remote seller required to be licensed must maintain the following:
(1) A list, updated annually, showing the cost price paid by the remote seller for each stock keeping unit of tobacco products.
(2) Invoices documenting remote or delivery sales to consumers in this State.
(3) Records necessary to document the cost price of purchases of all tobacco products sold to consumers in this State. (2021-180, s. 42.9(g); 2023-12, s. 3.7.)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.38C - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Penalties.

§ 105-113.38C. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Penalties.
A remote seller who violates G.S. 105-113.38A is subject to the following penalties:
(1) For the first violation, a penalty of one thousand dollars ($1,000).
(2) For a subsequent violation, a penalty not to exceed five thousand dollars ($5,000), as determined by the Secretary. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.39B - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Payment of tax.

§ 105-113.39B. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Payment of tax.
(a) Monthly Report. – Taxes levied by this Part are payable by the entity that is primarily liable for the tax when a report is required to be filed. A report is due on a monthly basis. A monthly report covers tobacco products sold, shipped, delivered, or otherwise disposed of in this State occurring in a calendar month and is due within 20 days after the end of the month covered by the report. A report must be filed on a form provided by the Secretary and must contain the information required by the Secretary.
(b) Use Tax Report. – A person who is not a licensee under this Part and has acquired non-tax-paid tobacco products for sale, use, or consumption subject to the tax imposed by this Part must, within 96 hours after receipt of the tobacco products, file a report in the form prescribed by the Secretary showing the amount of tobacco products received and any other information required by the Secretary. The report must be accompanied by payment of the full amount of the tax.
(c) Shipping Report. – A person who transports, or causes to transport, tobacco products upon the public highways, roads, or streets of this State must, upon notice from the Secretary, file a report in a form prescribed by and containing the information required by the Secretary. (2021-180, s. 42.9(g).)
2023 North Carolina General Statutes › Chapter 105 - Taxation › Article 2A - Tobacco Products Tax. › § 105-113.39C - (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Bond or irrevocable letter of credit.

§ 105-113.39C. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Bond or irrevocable letter of credit.
The Secretary may require a wholesale dealer or a retail dealer to furnish a bond in an amount that adequately protects the State from a wholesale dealer’s or a retail dealer’s failure to pay taxes due under this Part. A bond must be conditioned on compliance with this Part, payable to the State, and in the form required by the Secretary. The amount of the bond is two times the wholesale or retail dealer’s average expected monthly tax liability under this Part, as determined by the Secretary, provided the amount of the bond may not be less than two thousand dollars ($2,000) and may not be more than two million dollars ($2,000,000). The Secretary should periodically review the sufficiency of bonds required of dealers, increase the amount of a required bond when the amount of the bond furnished no longer covers the anticipated tax liability of the wholesale dealer or retail dealer, and decrease the amount when the Secretary determines that a smaller bond amount will adequately protect the State from loss.
For purposes of this section, a wholesale dealer or a retail dealer may substitute an irrevocable letter of credit for the secured bond required by this section. The letter of credit must be issued by a commercial bank acceptable to the Secretary and available to the State as a beneficiary. The letter of credit must be in a form acceptable to the Secretary, conditioned upon compliance with this Part, and in the amounts stipulated in this section. (2021-180, s. 42.9(g).)