17 NCAC 07B .1002. SHOE REPAIRMEN

(a)  Charges for materials used by shoe repairmen in repairing shoes or other articles for their customers are subject to the applicable statutory state and local sales or use tax.  A segregation may be made between the retail charge for the materials furnished and the charge for labor or services rendered and in such case the tax does not apply to the labor or service charge separately stated.

(b)  If no segregation is made between the charges for the materials furnished and the charges for labor and services performed in connection with the repair work, shoe repairmen may collect and remit the tax on 40 percent of the combined price or charge made for the materials, labor and services as representing the retail charge for the materials furnished.

(c)  The sales or use tax applies to the full retail selling price of tangible personal property such as shoes, shoe laces and shoe polish sold by shoe repairmen.

(d)  All shoe repair machinery, parts therefor, tools, equipment and supplies, other than those described in Paragraph (e) of this Rule, sold to persons engaged in the business of repairing shoes and which are used or consumed by such persons in shoe repair operations are subject to the applicable statutory state and local sales or use tax.

(e)  Sales to registered merchants of leather, rubber or like products, cement, thread and other items of a similar nature which ordinarily become a part of or attach to shoes which are repaired and are sold to and delivered with the repaired shoes to customers, including bags for delivery of the shoes, are sales for resale and may be sold on Streamlined Sales Tax Agreement Certificates of Exemption, form E-595E.  If registered shoe repairmen purchase other tangible personal property for resale to their customers, their suppliers shall also secure certificates of exemption in connection with such sales.  If the items that shoe repairmen generally purchase for use are purchased by them for the purpose of resale to other shoe repairmen, or other users, their suppliers shall secure a certificate of exemption with each such sale to support the claim for the exemption from the retail tax.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;

Eff. February 1, 1976;

Amended Eff. April 1 2006; October 1, 1993; October 1, 1991.