Sales Tax Regulations

General Sales Tax Regulations

NC sales tax should not be charged on sales made to customers who take delivery outside the State of NC.

For online sales, NC sales tax must be collected on sales made to customers who take delivery inside the state of NC.

Sales tax does not need to be charged on purchases made by other state agencies and nonprofit entities that can provide a tax exemption certificate.

Sales tax must always be charged to nonprofits for admission tickets to entertainment events.

Sales tax does not need to be charged on purchases made between departments.

Sales Tax on Admission Tickets to Entertainment Events

N.C. General Statute 105-164.4(a) (10) imposes that sales tax must be collected on admission charges to entertainment events. The total sales tax rate is currently 6.75%. (4.75% State and 2% Forsyth County)

Sales tax must be collected on the following types of entertainment activity:

  1. A live performance or other live event of any kind, the purpose of which is for entertainment.
  2. A movie, motion picture, or film.
  3. A museum, cultural site, garden, exhibit, show, or similar attraction.
  4. A guided tour at any of the attractions listed in subsection 3 above.


An admission charge includes a charge for a single ticket, a multi-occasion ticket, a seasonal pass, an annual pass; a membership fee that provides for admission; a cover charge; a surcharge; a convenience fee, a processing fee, a facility charge; or any other charges included in gross receipts derived from admission.

An admission to an event is sourced to the location where admission to the entertainment activity is gained by a person." In other words, the sales tax is sourced to where the event is held.

Sales Tax must be charged to for profit, as well as nonprofit entities. For example, sales tax would need to be charged on sales between different UNCSA entities. If the purchasing entity repackages the tickets as part of a homecoming event then they would not charge sales tax. Sales tax should only be charged once.

Sales tax does not need to be collected on the following:

  • Fees for the right to "participate" in sporting or recreational events. Examples include, corn maze fees, bowling fees, golf fees, paintball fees, water park fees, etc.
  • Tuition, registration fees, or charges to attend instructional seminars, conferences, or workshops for educational purposes.
  • Donations that would be deductible as a charitable contribution under the Internal Revenue Code.
  • Charges for amenities. An amenity may include parking and special access.

Sales Tax on Tangible Personal Property Sales

The University must comply with N.C. General Statute 105-164.4 (a) (12) to collect sales taxes on sales of tangible personal property currently at 6.75%.

Examples of tangible personal property sales include the following:

  • Sales of prepared food and drinks
  • Sales of prepaid meal plans to students, faculty and staff
  • Sales of merchandise such as clothing, pictures, books, etc.