North Carolina Convention Sales Tax
- Aug 23, 2012 | Susan McLain
The Democratic National Convention will be held in Charlotte, North Carolina September 4-6, 2012. Vendors intending to attend and sell product or services during the convention need to be aware of the sales and use tax laws in North Carolina for convention retailers.
According to the North Carolina Department of Revenue (DOR), “…every retailer engaged in business in North Carolina must collect and remit the applicable general State and local sales taxes on taxable sales of tangible personal property, certain digital property and certain services, made in or sourced to North Carolina.”
As a result, both registered and non-registered retailers must collect and remit sales and use tax to the North Carolina DOR. “The general State and local sale[s] tax rate in Mecklenburg County is 7.25%.”
Retailers who are already registered with the State must “…display a copy of their existing Certificate of Registration…or other evidence of registration.” They will “…report sales tax collected on transactions during the convention along with other taxable sales on Form E-500, Sales and Use Tax Return, due October 2012.”
Non-registered vendors attending the convention must “…record total sales made in or sourced to North Carolina and complete Form E-557, Sales and Use Tax Return for Itinerant Merchants.” The State has provided a sample Form E-557 filled out as a reference.
Payment is due by September 13, 2012 and must be “…made in U.S. dollars by check or money order drawn on a U.S. (domestic) bank payable to the North Carolina Department of Revenue.”
North Carolina requires use tax to be paid on “… tangible personal property or digital property purchased, leased, or rented inside or outside this State for storage, use, or consumption in this State.” Vendors giving free products or services away during the convention “…are potentially liable for use tax on the purchase price of products given away.”
Questions can be directed to the North Carolina DOR at 704-519-3000, option 2.