North carolina cigarette discount

Effective July 1, 2004, certain youth athletic contests are exempt from North Carolina sales and use tax. In order to be exempt, the contest must (1) have an admissions price of $10 or less, (2) include only participating athletes who are less than 20 years old, and (3) be sponsored by a person exempt from North Carolina income tax. Also, exhibitions, performances, and entertainment promoted and managed by nonprofit arts organizations exempt from state income tax, except for athletic events, are likewise exempt from sales and use tax.

Discounts

Effective for reporting periods beginning after July 2004, a distributor, or wholesale or retail dealer primarily liable for the North Carolina cigarette or tobacco products tax, who timely files a report and timely pays the tax may deduct from the amount due a 2% discount. The discount covers expenses incurred in the furnishing of a bond and in the preparation of records and reports, as well as losses due to damage to tobacco products. Moreover, wholesalers and importers of malt beverages or wine who timely file North Carolina alcoholic beverage tax reports and timely pay the tax due may also deduct a 2% discount from the amount owed to cover losses due to spoilage, breakage, and expenses incurred in furnishing a bond and preparing records and reports. Prior to August 1, 2003, such taxpayers could deduct a 4% discount. (Ch. 84 (H.B. 1303), Laws 2004, effective as noted above.)

Copyright CCH Incorporated: Federal and State Tax Jul 27, 2004
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