2005 North Carolina Code - General Statutes § 105-113.35. Tax on tobacco products other than cigarettes.

Part 3. Tax on Other Tobacco Products.

§ 105‑113.35.  Tax on tobacco products other than cigarettes.

(a)       Tax. – An excise tax is levied on tobacco products other than cigarettes at the rate of three percent (3%) of the cost price of the products. This tax does not apply to the following:

(1)       A tobacco product sold outside the State.

(2)       A tobacco product sold to the federal government.

(3)       A sample tobacco product distributed without charge.

(b)       Primary Liability. – The wholesale dealer or retail dealer who first acquires or otherwise handles tobacco products subject to the tax imposed by this section is liable for the tax imposed by this section. A wholesale dealer or retail dealer who brings into this State a tobacco product made outside the State is the first person to handle the tobacco product in this State. A wholesale dealer or retail dealer who is the original consignee of a tobacco product that is made outside the State and is shipped into the State is the first person to handle the tobacco product in this State.

(c)       Secondary Liability. – A retail dealer who acquires non‑tax‑paid tobacco products subject to the tax imposed by this section from a wholesale dealer is liable for any tax due on the tobacco products. A retail dealer who is liable for tax under this subsection may not deduct a discount from the amount of tax due when reporting the tax.

(d)       Manufacturer's Option. – A manufacturer who is not a retail dealer and who ships tobacco products other than cigarettes to either a wholesale dealer or retail dealer licensed under this Part may apply to the Secretary to be relieved of paying the tax imposed by this section on the tobacco products. Once granted permission, a manufacturer may choose not to pay the tax until otherwise notified by the Secretary. To be relieved of payment of the tax imposed by this section, a manufacturer must comply with the requirements set by the Secretary. (1969, c. 1075, s. 2; 1977, c. 1114, s. 4; 1991, c. 689, s. 269; 1991 (Reg. Sess., 1992), c. 955, s. 10; 2003‑284, s. 45A.1(b); 2004‑84, s. 2(b); 2005‑276, s. 34.1(c).)