If you purchased items to be used or consumed in North Carolina but did not pay North Carolina sales tax on those items, you must pay Sales or Use Tax to North Carolina.
Examples of purchases where sales tax may not be collected are those made via the internet, mail order catalog or out-of-state.
Out-of-state retailers that are not engaged in business in this State are not obligated to collect North Carolina tax. However, some out-of-state retailers voluntarily collect North Carolina tax as an ease for their customers. Out-of-state retailers include mail-order companies; television shopping networks; firms selling over the Internet; and other retailers.
What is the Use Tax rate?
The use tax amount is .0675% of North Carolina taxable income. Your North Carolina taxable income is listed on line 14 of the D-400 form.
How do I figure the Use Tax amount?
Whether you have complete records, partial records or no records of your out of state purchases, you may use the table and worksheets found here to determine your use tax liability.
Where do I enter this in my account?
To enter the Use Tax on your North Carolina return, follow the steps below:
- State Section
- North Carolina Return
- Use Tax