Effective July 1st, 2004 the University is exempt from North Carolina Sales & Use Tax. Disbursement Services has notified each of the University’s active vendors. Note that the University’s exemption does not require a certificate. Instead, the exemption simply requires the University to notify the vendor prior to the sale of the exemption number. For all purchases this will be handled by Disbursement Services. Departments purchasing under the voucher procedures via phone (to be paid by check request or p-card) should follow the following procedures:

  1. Notify the vendor of the University’s exemption and provide the exemption number
  2. Record the date, time, and person who took the order (this information should be included in the notepad of the payment document or submitted to the reconciler with the purchase receipt for p-card purchases).

Failure to make this notification and document voids the tax exemption and the sale becomes a taxable transaction.

The following items are EXCLUDED from the exemption:

  1. Food, lodging, or other taxable items purchased by University employees who are reimbursed by the University.
  2. Prepared food and beverage taxes levied and administered by various local governments in the State (i.e. catering, deli or restaurant prepared orders, baked goods provided by a grocery store bakery, basically anything except prepackaged items)
  3. Occupancy taxes levied and administered by various local governments in the State.
  4. Highway use taxes paid on the purchase, lease or rental of motor vehicles (note- airline taxes are FEDERAL, not state and are thereby not subject to this exemption).
  5. State sales taxes levied on electricity or local, private or toll telecommunications services.
  6. Scrap tire disposal tax levied on new tires.
  7. White goods disposal tax levied on new white goods.
  8. Dry-cleaning solvent tax levied on dry-cleaning solvent purchased by a dry-cleaning facility.
  9. Excise tax on piped natural gas.
  10. Taxes imposed by other states or the federal government.

Click here for a copy of the vendor notification letter containing the University’s tax exemption number . Note – If the vendor you are dealing with states that a tax exemption certificate must be submitted, please fax them a copy of NC Department of Revenue Directive SD-04-01 and highlight page 4, 2nd to last paragraph, which specifically states that certain purchases such as the State of North Carolina (effective July 1, 2004) are not required to furnish Form E-595E {Tax Exemption Certificate}. Purchase orders from State agencies or other documentation bearing the assigned State agency exemption number are acceptable.

Please email any questions to Martha Pendergrass (919-843-5048).