17 NCAC 04C .1501 — Primary Liability

SECTION .1600 - MILITARY EXEMPT SALES 17 NCAC 04C .1601 EXEMPT SALES LIMITED TO ARMED FORCES AND THEIR DEPENDENTS Other tobacco products sold to the Federal Government and its instrumentalities, such as the Armed Forces Exchange Services, are exempt from the excise tax. However, sales of other tobacco products by such services MUST BE LIMITED to members of the armed forces and their dependents who hold identification cards entitling them to make purchases through armed forces exchange services. 17 NCAC 04C .1602 DELIVERIES TO ARMED FORCES EXCHANGE SERVICES Whenever tax exempt deliveries of other tobacco products are made by dealers to armed forces exchange services, the dealer must require a duly receipted invoice or copy thereof from the governmental agent designated to accept delivery. 17 NCAC 04C .1603 SALES OF OTHER TOBACCO PRODUCTS: BY OTHERS: NOT EXEMPT If a person engages in the sale of any other tobacco products on a military reservation, regardless of the fact that he may have a contract with the Federal Government, whereby the Federal Government will receive a commission, flat fee or some other type of compensation on such sales, same does not exempt the sale of such products from the excise tax. In such instances, such sales would not be made by the Federal Government or an instrumentality thereof. Instead, all such sales are subject to the excise tax. SECTION .1700 - DESIGNATION OF EXEMPT SALES