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Sales Tax Exemption

In 2003, North Carolina’s Legislature passed Senate Bill 100 that exempted the university from paying sales tax on tangible personal property.

When you purchase items from a Marketplace vendor the sales tax exemption has already been confirmed and the university will not be charged tax.

When you are purchasing items using your Purchase card, you need to inform the vendor that the purchase is for NC State and that the University is tax-exempt. Our tax-exempt number is printed on the bottom of all Purchase cards.

If these items are then resold, the university is then required to collect sales tax and remit it to the North Carolina Department of Revenue. This includes items purchased in bulk and then “sold” to the students at cost.

The sales tax exemption applies to North Carolina sales tax on all direct purchases of tangible items made by the university. This includes purchases made via a Small Purchase Voucher, Purchase Order, Pcard transaction, or electronic transfer. The exemption from tax does not apply to the following taxes; these taxes must be paid to the vendor:

  • Prepared food and beverage taxes levied and administered by various local governments in the state
  • Occupancy taxes on hotel/motel lodging
  • Highway use taxes on the purchase, lease, or rental of motor vehicles
  • State sales taxes levied on electricity or telecommunication services
  • Scrap tire disposal tax on new tires
  • White goods disposal tax on new white goods
  • Dry-cleaning solvent tax on dry-cleaning solvent purchased by a dry-cleaning facility
  • Excise tax on piped natural gas

Sales Tax Exemption Q&A

Sales Tax Vendor Exemption Letter