17 NCAC 07B .4710. BOOKBINDERS

(a)  Persons engaged in the business of binding books, magazines, or other printed matter belonging to other persons are rendering services, and the receipts therefrom are not subject to sales or use tax.  Sales of cloth, leather, cardboard, glue, thread or other such items of tangible personal property to bookbinders for use in performing such services are subject to the applicable statutory state and local sales or use tax.

(b)  Sales of cloth, leather, cardboard, glue, thread or other such items of tangible personal property to registered bookbinders for use in binding their own books, magazines or other printed matter for sale or for use in making loose‑leaf or detachable binders for sale are wholesale sales and are exempt from tax when supported by properly completed Streamlined Sales Tax Agreement Certificates of Exemption, Form E-595E.  Such bookbinders must collect and remit the applicable statutory state and local sales or use tax on their retail sales of tangible personal property.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.5; 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.