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NC Sales tax is by

NC Sales tax is by definition a Sales and Use tax. If you purchase an item here it is a sales tax. If you purchase it somewhere else (internet), but use the item here in NC then you owe NC the USE tax. When you purchase an item out of state and don't pay a local sales tax to that state, like on internet purchases, you actually are supposed to report these purchases and pay the tax on your NC income tax return each year. However, most people either don't know about this provision, or just ignore it. The state see this as them losing tax revenues because people don't voluntarilry report these transactions as required by NC law. They're trying to close this loophole in the law and put the burden on the internet merchants, similar to how they make local merchants collect the sales tax when you buy something, and then have the merchants remit it to the state.


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