NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

CHAPTER 1175

SENATE BILL 957

AN ACT TO PROVIDE THAT A PRIME CONTRACTOR IS JOINTLY LIABLE WITH A SUBCONTRACTOR FOR USE TAX UNLESS THE SUBCONTRACTORS AFFIDAVIT THAT THE TAX HAS BEEN PAID IS FURNISHED TO THE CONTRACTOR.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-164.6(3) is amended by deleting the following language:

"Provided, however, the taxes levied in this section shall be levied against the purchaser of the articles named. If purchases of building materials that are not exempt from tax are made by a contractor there shall be joint liability for the tax against both contractor and owner, but the liability of the owner shall be satisfied if affidavit is required of the contractor, and furnished by him, before final settlement is made, showing that the tax herein levied has been paid in full.", and inserting in lieu thereof the following new language: "Said tax shall be levied against the purchaser of such property. Provided, that where the purchaser is a contractor, the contractor and owner shall be jointly and severally liable for said tax, but the liability of the owner shall be deemed satisfied if before final settlement between them the contractor furnishes to the owner an affidavit certifying that said tax has been paid. Provided further, that where the purchaser is a subcontractor, the contractor and subcontractor shall be jointly and severally liable for said tax, but the liability of the contractor shall be deemed satisfied if before final settlement between them the subcontractor furnishes to the contractor an affidavit certifying that said tax has been paid."

Sec. 2.  This act shall become effective October 1, 1980.

In the General Assembly read three times and ratified, this the 23rd day of June, 1980.