§ 105-164.3. Definitions.
§ 105‑164.3. Definitions.
The following definitionsapply in this Article:
(1) Analytical services. Testing laboratories that are included in national industry 541380 of NAICSor medical laboratories that are included in national industry 621511 of NAICS.
(1a) Ancillary service. Aservice associated with or incidental to the provision of a telecommunicationsservice. The term includes detailed communications billing, directoryassistance, vertical service, and voice mail service. A vertical service is aservice, such as call forwarding, caller ID, three‑way calling, andconference bridging, that allows a customer to identify a caller or managemultiple calls and call connections.
(1b) through (1d) Reserved forfuture codification purposes.
(1e) Audio work. Aseries of musical, spoken, or other sounds, including a ringtone.
(1f) Reserved for futurecodification purposes.
(1g) Audiovisual work. Aseries of related images and any sounds accompanying the images that impart animpression of motion when shown in succession.
(1h) Reserved for futurecodification purposes.
(1i) Bundled transaction. A retail sale of two or more distinct and identifiable products, at least oneof which is taxable and one of which is exempt, for one nonitemized price.Products are not sold for one nonitemized price if an invoice or another salesdocument made available to the purchaser separately identifies the price ofeach product. A bundled transaction does not include the retail sale of any ofthe following:
a. A product and anypackaging item that accompanies the product and is exempt under G.S. 105‑164.13(23).
b. A sale of two ormore products whose combined price varies, or is negotiable, depending on theproducts the purchaser selects.
c. A sale of a productaccompanied by a transfer of another product with no additional consideration.
d. A product and thedelivery or installation of the product.
e. A product and anyservice necessary to complete the sale.
(1j) reserved for futurecodification purposes.
(1k) Business. Anactivity a person engages in or causes another to engage in with the object ofgain, profit, benefit, or advantage, either direct or indirect. The term doesnot include an occasional and isolated sale or transaction by a person who doesnot claim to be engaged in business.
(1l) Reserved for futurecodification purposes.
(1m) Cable service. Theone‑way transmission to subscribers of video programming or otherprogramming service and any subscriber interaction required to select or usethe service.
(2) Candy. Apreparation of sugar, honey, or other natural or artificial sweeteners incombination with chocolate, fruits, nuts, or other ingredients or flavorings inthe form of bars, drops, or pieces that do not require refrigeration. The termdoes not include any preparation that contains flour.
(3) Clothing. Allhuman wearing apparel suitable for general use including coats, jackets, hats,hosiery, scarves, and shoes.
(4) Clothing accessoriesor equipment. Incidental items worn on the person or in conjunction withclothing including jewelry, cosmetics, eyewear, wallets, and watches.
(4a) Combined generalrate. The State's general rate of tax set in G.S. 105‑164.4(a) plus thesum of the rates of the local sales and use taxes authorized by Subchapter VIIIof this Chapter for every county in this State.
(4b) Computer. Anelectronic device that accepts information in digital or similar form andmanipulates it for a result based on a sequence of instructions.
(4c) Computer software. Aset of coded instructions designed to cause a computer or automatic dataprocessing equipment to perform a task.
(4d) Computer supply. Anitem that is considered a "school computer supply" under theStreamlined Agreement.
(5) Consumer. A personwho stores, uses, or otherwise consumes in this State tangible personalproperty, digital property, or a service purchased or received from a retailereither within or without this State.
(5a) Reserved for futurecodification purposes.
(5b) Custom computersoftware. Computer software that is not prewritten computer software. Theterm includes a user manual or other documentation that accompanies the sale ofthe software.
(5c) Datacenter. Afacility that provides infrastructure for hosting or data processing servicesand that has power and cooling systems that are created and maintained to beconcurrently maintainable and to include redundant capacity components andmultiple distribution paths serving the computer equipment at the facility.Although the facility must have multiple distribution paths serving thecomputer equipment, a single distribution path may serve the computer equipmentat any one time. The following definitions apply in this subdivision:
a. Concurrentlymaintainable. Capable of having any capacity component or distributionelement serviced or repaired on a planned basis without interrupting orimpeding the performance of the computer equipment.
b. Multipledistribution paths. A series of distribution paths configured to ensure thatfailure on one distribution path does not interrupt or impede otherdistribution paths.
c. Redundant capacitycomponents. Components beyond those required to support the computerequipment.
(5d) Repealed by SessionLaws 2009‑451, s. 27A.3(d), effective January 1, 2010, and applicable tosales made on or after that date.
(6) Delivery charges. Chargesimposed by the retailer for preparation and delivery of personal property orservices to a location designated by the consumer.
(7) Dietary supplement. A product that is intended to supplement the diet of humans and is requiredto be labeled as a dietary supplement under federal law, identifiable by the"Supplement Facts" box found on the label.
(7a) Digital code. Acode that gives a purchaser of the code a right to receive an item byelectronic delivery or electronic access. A digital code may be obtained by anelectronic means or by a tangible means. A digital code does not include a giftcertificate or a gift card.
(7c) Direct mail. Printedmaterial delivered or distributed by the United States Postal Service or otherdelivery service to a mass audience or to addresses on a mailing list providedby the purchaser or at the direction of the purchaser when the cost of theitems is not billed directly to the recipients. The term includes tangiblepersonal property supplied directly or indirectly by the purchaser to thedirect mail seller for inclusion in the package containing the printedmaterial. The term does not include multiple items of printed materialdelivered to a single address.
(8) Direct‑to‑homesatellite service. Programming transmitted or broadcast by satellite directlyto the subscribers' premises without the use of ground equipment ordistribution equipment, except equipment at the subscribers' premises or theuplink process to the satellite.
(8a) Drug. A compound,substance, or preparation or a component of one of these that meets any of thefollowing descriptions and is not food, a dietary supplement, or an alcoholicbeverage:
a. Is recognized in theUnited States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, orNational Formulary.
b. Is intended for usein the diagnosis, cure, mitigation, treatment, or prevention of disease.
c. Is intended toaffect the structure or function of the body.
(8b) Durable medicalequipment. Equipment that meets all of the conditions of this subdivision.The term includes repair and replacement parts for the equipment. The term doesnot include mobility enhancing equipment.
a. Can withstandrepeated use.
b. Primarily andcustomarily used to serve a medical purpose.
c. Generally not usefulto a person in the absence of an illness or injury.
d. Not worn in or onthe body.
(8c) Durable medicalsupplies. Supplies related to use with durable medical equipment that are eligibleto be covered under the Medicare or Medicaid program.
(8d) Electronic. Relatingto technology having electrical, digital, magnetic, wireless, optical,electromagnetic, or similar capabilities.
(8e) Eligible Internetdatacenter. A datacenter that satisfies each of the following conditions:
a. The facility is usedprimarily or is to be used primarily by a business engaged in "Internetservice providers and Web search portals" industry 51811, as defined byNAICS.
b. The facility iscomprised of a structure or series of structures located or to be located on asingle parcel of land or on contiguous parcels of land that are commonly ownedor owned by affiliation with the operator of that facility.
c. The facility islocated or to be located in a county that was designated, at the time ofapplication for the written determination required under sub‑subdivisiond. of this subdivision, either an enterprise tier one, two, or three area or adevelopment tier one or two area pursuant to G.S. 105‑129.3 or G.S. 143B‑437.08,regardless of any subsequent change in county enterprise or development tierstatus.
d. The Secretary ofCommerce has made a written determination that at least two hundred fiftymillion dollars ($250,000,000) in private funds has been or will be invested inreal property or eligible business property, or a combination of both, at thefacility within five years after the commencement of construction of thefacility.
(8f) Eligible railroadintermodal facility. Defined in G.S. 105‑129.95.
(8g) Energy Star qualifiedproduct. A product that meets the energy efficient guidelines set by theUnited States Environmental Protection Agency and the United States Departmentof Energy and is authorized to carry the Energy Star label.
(9) Engaged in business. Any of the following:
a. Maintaining,occupying, or using permanently or temporarily, directly or indirectly, orthrough a subsidiary or agent, by whatever name called, any office, place ofdistribution, sales or sample room, warehouse or storage place, or other placeof business for selling or delivering tangible personal property, digitalproperty, or a service for storage, use, or consumption in this State, orpermanently or temporarily, directly or through a subsidiary, having anyrepresentative, agent, sales representative, or solicitor operating in thisState in the selling or delivering. The fact that any corporate retailer,agent, or subsidiary engaged in business in this State may not be legallydomesticated or qualified to do business in this State is immaterial.
b. Maintaining in thisState, either permanently or temporarily, directly or through a subsidiary,tangible personal property or digital property for the purpose of lease orrental.
c. Making a remotesale, if one of the conditions listed in G.S. 105‑164.8(b) is met.
d. Shipping winedirectly to a purchaser in this State as authorized by G.S. 18B‑1001.1.
(10) Food. Substancesthat are sold for ingestion or chewing by humans and are consumed for theirtaste or nutritional value. The substances may be in liquid, concentrated,solid, frozen, dried, or dehydrated form. The term does not include analcoholic beverage, as defined in G.S. 105‑113.68, or a tobacco product,as defined in G.S. 105‑113.4.
(11) Food sold through avending machine. Food dispensed from a machine or another mechanical devicethat accepts payment.
(12) Gross sales. Thesum total of the sales price of all retail sales of tangible personal property,digital property, and services.
(13) Hub. Either of thefollowing:
a. An interstate aircourier's hub is the interstate air courier's principal airport within theState for sorting and distributing letters and packages and from which theinterstate air courier has, or expects to have upon completion of construction,no less than 150 departures a month under normal operating conditions.
b. An interstatepassenger air carrier's hub is the airport in this State that meets both of thefollowing conditions:
1. The air carrier hasallocated to the airport under G.S. 105‑338 more than sixty percent (60%)of its aircraft value apportioned to this State.
2. The majority of theair carrier's passengers boarding at the airport are connecting from otherairports rather than originating at that airport.
(14) In this (the) State. Within the exterior limits of the State of North Carolina, including allterritory within these limits owned by or ceded to the United States ofAmerica.
(14a) Information service. A service that generates, acquires, stores, processes, or retrieves data andinformation and delivers it electronically to or allows electronic access by aconsumer whose primary purpose for using the service is to obtain the processeddata or information.
(14c) Interstate airbusiness. An interstate air courier, an interstate freight air carrier, or aninterstate passenger air carrier.
(15) Interstate aircourier. A person whose primary business is the furnishing of air delivery ofindividually addressed letters and packages for compensation, in interstatecommerce, except by the United States Postal Service.
(15b) Interstate freight aircarrier. A person whose primary business is scheduled freight airtransportation, as defined in the North American Industry Classification Systemadopted by the United States Office of Management and Budget, in interstatecommerce.
(16) Interstate passengerair carrier. A person whose primary business is scheduled passenger airtransportation, as defined in the North American Industry Classification Systemadopted by the United States Office of Management and Budget, in interstatecommerce.
(17) Lease or rental. Atransfer of possession or control of tangible personal property for a fixed orindeterminate term for consideration. The term does not include any of thefollowing:
a. A transfer ofpossession or control of property under a security agreement or deferredpayment plan that requires the transfer of title upon completion of therequired payments.
b. A transfer ofpossession or control of property under an agreement that requires the transferof title upon completion of required payments and payment of an option pricethat does not exceed the greater of one hundred dollars ($100.00) or onepercent (1%) of the total required payments.
c. The providing oftangible personal property along with an operator for a fixed or indeterminateperiod of time if the operator is necessary for the equipment to perform asdesigned. For the purpose of this sub‑subdivision, an operator must domore than maintain, inspect, or set up the tangible personal property.
(17a) Repealed by SessionLaws 2009‑451, s. 27A.3(d), effective January 1, 2010, and applicable tosales made on or after that date.
(18) Repealed by SessionLaws 2009‑451, s. 27A.3(g), effective August 7, 2009.
(19) Major recyclingfacility. Defined in G.S. 105‑129.25.
(20) Manufactured home. Astructure that is designed to be used as a dwelling and is manufactured inaccordance with the specifications for manufactured homes issued by the UnitedStates Department of Housing and Urban Development.
a., b. Repealed by SessionLaws 2003‑400, s. 13, effective January 1, 2004, and applicable to salesof modular homes on and after that date.
(21) Mobiletelecommunications service. A radio communication service carried on betweenmobile stations or receivers and land stations and by mobile stationscommunicating among themselves and includes all of the following:
a. Both one‑wayand two‑way radio communication services.
b. A mobile servicethat provides a regularly interacting group of base, mobile, portable, andassociated control and relay stations for private one‑way or two‑wayland mobile radio communications by eligible users over designated areas ofoperation.
c. Any service forwhich a federal license is required in a personal communications service.
(21a) Mobility enhancingequipment. Equipment that meets all of the conditions of this subdivision.The term includes repair and replacement parts for the equipment. The term doesnot include durable medical equipment.
a. Primarily andcustomarily used to provide or increase the ability of an individual to movefrom one place to another.
b. Appropriate for useeither in a home or motor vehicle.
c. Not generally usedby a person with normal mobility.
d. Not normallyprovided on a motor vehicle by a motor vehicle manufacturer.
(21b) Modular home. Afactory‑built structure that is designed to be used as a dwelling, ismanufactured in accordance with the specifications for modular homes under theNorth Carolina State Residential Building Code, and bears a seal or labelissued by the Department of Insurance pursuant to G.S. 143‑139.1.
(21c) Modular homebuilder. A person who furnishes for consideration a modular home to a purchaser thatwill occupy the modular home. The purchaser can be a person that will lease orrent the unit as real property.
(22) Moped. A vehiclethat has two or three wheels, no external shifting device, and a motor thatdoes not exceed 50 cubic centimeters piston displacement and cannot propel thevehicle at a speed greater than 30 miles per hour on a level surface.
(23) Motor vehicle. Avehicle that is designed primarily for use upon the highways and is either self‑propelledor propelled by a self‑propelled vehicle, but does not include:
a. A moped.
b. Special mobileequipment.
c. A tow dolly that isexempt from motor vehicle title and registration requirements under G.S. 20‑51(10)or (11).
d. A farm tractor orother implement of husbandry.
e. A manufactured home,a mobile office, or a mobile classroom.
f. Road constructionor road maintenance machinery or equipment.
(23a) NAICS. Defined inG.S. 105‑129.81.
(24) Net taxable sales. Thegross retail sales of the business of a retailer taxed under this Article afterdeducting exempt sales and nontaxable sales.
(25) Nonresident retail orwholesale merchant. A person who does not have a place of business in thisState, is registered for sales and use tax purposes in a taxing jurisdictionoutside the State, and is engaged in the business of acquiring, by purchase,consignment, or otherwise, tangible personal property or digital property andselling the property outside the State or in the business of providing aservice.
(25a) Over‑the‑counterdrug. A drug that can be dispensed under federal law without a prescriptionand is required by 21 C.F.R. § 210.66 to have a label containing a "DrugFacts" panel and a statement of its active ingredients.
(26) Person. Defined inG.S. 105‑228.90.
(26a) Place of primary use. The street address representative of where the use of a customer'stelecommunications service primarily occurs. The street address must be thecustomer's residential street address or primary business street address. Formobile telecommunications service, the street address must be within thelicensed service area of the service provider. If the customer who contractedwith the telecommunications provider for the telecommunications service is notthe end user of the service, the end user is considered the customer for thepurpose of determining the place of primary use.
(27) Prepaid telephonecalling service. Prepaid wireline calling service or prepaid wireless callingservice.
(27a) Prepaid wirelesscalling service. A right that meets all of the following requirements:
a. Authorizes thepurchase of mobile telecommunications service, either exclusively or inconjunction with other services.
b. Must be paid for inadvance.
c. Is sold in units ordollars whose number or dollar value declines with use and is known on acontinuous basis.
(27b) Prepaid wirelinecalling service. A right that meets all of the following requirements:
a. Authorizes theexclusive purchase of wireline telecommunications service.
b. Must be paid for inadvance.
c. Enables theorigination of calls by means of an access number, authorization code, oranother similar means, regardless of whether the access number or authorizationcode is manually or electronically dialed.
d. Is sold in units ordollars whose number or dollar value declines with use and is known on acontinuous basis.
(28) Prepared food. Foodthat meets at least one of the conditions of this subdivision. Prepared fooddoes not include food the retailer sliced, repackaged, or pasteurized but didnot heat, mix, or sell with eating utensils.
a. It is sold in aheated state or it is heated by the retailer.
b. It consists of twoor more foods mixed or combined by the retailer for sale as a single item. Thissub‑subdivision does not include foods containing raw eggs, fish, meat,or poultry that require cooking by the consumer as recommended by the Food andDrug Administration to prevent food borne illnesses.
c. It is sold witheating utensils provided by the retailer, such as plates, knives, forks,spoons, glasses, cups, napkins, and straws.
(29) Prescription. Anorder, formula, or recipe issued orally, in writing, electronically, or byanother means of transmission by a physician, dentist, veterinarian, or anotherperson licensed to prescribe drugs.
(29a) Prewritten computersoftware. Computer software, including prewritten upgrades, that is notdesigned and developed by the author or another creator to the specificationsof a specific purchaser. The term includes software designed and developed bythe author or another creator to the specifications of a specific purchaserwhen it is sold to a person other than the specific purchaser.
(30) Production company. A person engaged in the business of making original motion picture, television,or radio images for theatrical, commercial, advertising, or educationalpurposes.
(30a) Professional motorsportsracing team. A racing team that satisfies all of the following conditions:
a. The team is operatedfor profit.
b. A majority of therevenues of the team is derived from sponsorship of the racing team and prizemoney.
c. The team competes inat least sixty‑six percent (66%) of the races sponsored in a singleseason by a motorsports sanctioning body.
(30b) Prosthetic device. Areplacement, corrective, or supporting device worn on or in the body that meetsone of the conditions of this subdivision. The term includes repair andreplacement parts for the device.
a. Artificiallyreplaces a missing portion of the body.
b. Prevents or correctsa physical deformity or malfunction.
c. Supports a weak ordeformed portion of the body.
(31) Protective equipment. Items for human wear and designed as protection of the wearer against injuryor disease or as protection against damage or injury of other persons orproperty but not suitable for general use including breathing masks, faceshields, hard hats, and tool belts.
(32) Purchase. Acquiredfor consideration, regardless of any of the following:
a. Whether theacquisition was effected by a transfer of title or possession, or both, or alicense to use or consume.
b. Whether the transferwas absolute or conditional regardless of the means by which it was effected.
c. Whether theconsideration is a price or rental in money or by way of exchange or barter.
(33) Purchase price. Theterm has the same meaning as the term "sales price" when applied toan item subject to use tax.
(33c) Remote sale. A saleof tangible personal property or digital property ordered by mail, bytelephone, via the Internet, or by another similar method, to a purchaser whois in this State at the time the order is remitted, from a retailer whoreceives the order in another state and delivers the property or causes it tobe delivered to a person in this State. It is presumed that a resident of thisState who remits an order was in this State at the time the order was remitted.
(34) Retail sale or saleat retail. The sale, lease, or rental for any purpose other than for resale,sublease, or subrent.
(35) Retailer. A personengaged in the business of any of the following:
a. Making sales atretail, offering to make sales at retail, or soliciting sales at retail oftangible personal property, digital property, or services for storage, use, orconsumption in this State. When the Secretary finds it necessary for theefficient administration of this Article to regard any sales representatives,solicitors, representatives, consignees, peddlers, or truckers as agents of thedealers, distributors, consignors, supervisors, employers, or persons underwhom they operate or from whom they obtain the items sold by them regardless ofwhether they are making sales on their own behalf or on behalf of thesedealers, distributors, consignors, supervisors, employers, or persons, theSecretary may so regard them and may regard the dealers, distributors,consignors, supervisors, employers, or persons as "retailers" for thepurpose of this Article.
b. Delivering,erecting, installing, or applying tangible personal property for use in thisState, regardless of whether the property is permanently affixed to realproperty or other tangible personal property.
c. Making a remotesale, if one of the conditions listed in G.S. 105‑164.8(b) is met.
(35c) Ringtone. Adigitized sound file that is downloaded onto a device and that may be used toalert the user of the device with respect to a communication.
(36) Sale or selling. Thetransfer for consideration of title or possession of tangible personal propertyor digital property or the performance for consideration of a service. Thetransfer or performance may be conditional or in any manner or by any means.The term includes the following:
a. Fabrication oftangible personal property for consumers by persons engaged in business whofurnish either directly or indirectly the materials used in the fabricationwork.
b. Furnishing orpreparing tangible personal property consumed on the premises of the personfurnishing or preparing the property or consumed at the place at which theproperty is furnished or prepared.
c. A transaction inwhich the possession of the property is transferred but the seller retainstitle or security for the payment of the consideration.
d. A lease or rental.
e. Transfer of adigital code.
(37) Sales price. Thetotal amount or consideration for which tangible personal property, digitalproperty, or services are sold, leased, or rented. The consideration may be inthe form of cash, credit, property, or services. The sales price must be valuedin money, regardless of whether it is received in money.
a. The term includesall of the following:
1. The retailer's costof the property sold.
2. The cost ofmaterials used, labor or service costs, interest, losses, all costs oftransportation to the retailer, all taxes imposed on the retailer, and anyother expense of the retailer.
3. Charges by theretailer for any services necessary to complete the sale.
4. Delivery charges.
5. Installationcharges.
6. Repealed by SessionLaws 2007‑244, s. 1, effective October 1, 2007.
7. Credit for trade‑in.
8. Discounts that arereimbursable by a third party and can be determined at the time of sale throughany of the following:
I. Presentation by theconsumer of a coupon or other documentation.
II. Identification ofthe consumer as a member of a group eligible for a discount.
III. The invoice theretailer gives the consumer.
b. The term does notinclude any of the following:
1. Discounts that arenot reimbursable by a third party, are allowed by the retailer, and are takenby a consumer on a sale.
2. Interest, financing,and carrying charges from credit extended on the sale, if the amount isseparately stated on the invoice, bill of sale, or a similar document given tothe consumer.
3. Any taxes imposeddirectly on the consumer that are separately stated on the invoice, bill ofsale, or similar document given to the consumer.
(37a) Satellite digitalaudio radio service. A radio communication service in which audio programmingis digitally transmitted by satellite to an earth‑based receiver, whetherdirectly or via a repeater station.
(37b) School instructionalmaterial. Defined in the Streamlined Agreement.
(37d) School supply. Anitem that is commonly used by a student in the course of study and isconsidered a "school supply" or "school art supply" underthe Streamlined Agreement.
(38) Secretary. TheSecretary of the North Carolina Department of Revenue.
(39) Repealed by SessionLaws 2002‑16, s. 3, effective August 1, 2002, and applicable to taxableservices reflected on bills dated after August 1, 2002.
(40) Soft drink. Anonalcoholic beverage that contains natural or artificial sweeteners. The termdoes not include beverages that contain one or more of the following:
a. Milk or milkproducts.
b. Soy, rice, orsimilar milk substitutes.
c. More than fiftypercent (50%) vegetable or fruit juice.
(41) Special mobileequipment. Any of the following:
a. A vehicle that has apermanently attached crane, mill, well‑boring apparatus, ditch‑diggingapparatus, air compressor, electric welder, feed mixer, grinder, or othersimilar apparatus is driven on the highway only to get to and from a nonhighwayjob and is not designed or used primarily for the transportation of persons orproperty.
b. A vehicle that haspermanently attached special equipment and is used only for parade purposes.
c. A vehicle that isprivately owned, has permanently attached fire‑fighting equipment, and isused only for fire‑fighting purposes.
d. A vehicle that haspermanently attached playground equipment and is used only for playgroundpurposes.
(42) Sport or recreationalequipment. Items designed for human use and worn in conjunction with anathletic or recreational activity that are not suitable for general useincluding ballet shoes, cleated athletic shoes, shin guards, and ski boots.
(43) State agency. Aunit of the executive, legislative, or judicial branch of State government,such as a department, a commission, a board, a council, or The University ofNorth Carolina. The term does not include a local board of education.
(44) Storage. Thekeeping or retention in this State for any purpose, except sale in the regularcourse of business, of tangible personal property or digital property purchasedfrom a retailer. The term does not include a purchaser's storage of tangiblepersonal property or digital property in any of the following circumstances:
a. When the purchaseracquires the property for the purchaser's use outside the State andsubsequently takes it outside the State and uses it solely outside the State.
b. When the purchaseracquires the property to process, fabricate, manufacture, or otherwiseincorporate it into or attach it to other property for the purchaser's useoutside the State and, after incorporating or attaching the purchased property,the purchaser subsequently takes the other property outside the State and usesit solely outside the State.
(45) Repealed by SessionLaws 2009‑451, s. 27A.3(g), effective August 7, 2009.
(45a) Streamlined Agreement. The Streamlined Sales and Use Tax Agreement as amended as of May 12, 2009.
(46) Tangible personalproperty. Personal property that may be seen, weighed, measured, felt, ortouched or is in any other manner perceptible to the senses. The term includeselectricity, water, gas, steam, and prewritten computer software.
(47) Taxpayer. Anyperson liable for taxes under this Article.
(48) Telecommunicationsservice. The electronic transmission, conveyance, or routing of voice, data,audio, video, or any other information or signals to a point, or between oramong points. The term includes any transmission, conveyance, or routing inwhich a computer processing application is used to act on the form, code, orprotocol of the content for purposes of the transmission, conveyance, orrouting, regardless of whether it is referred to as voice‑over Internetprotocol or the Federal Communications Commission classifies it as enhanced orvalue added. The term does not include the following:
a. An informationservice.
b. The sale,installation, maintenance, or repair of tangible personal property.
c. Directoryadvertising and other advertising.
d. Billing andcollection services provided to a third party.
e. Internet accessservice.
f. Radio andtelevision audio and video programming service, regardless of the medium ofdelivery, and the transmission, conveyance, or routing of the service by theprogramming service provider. The term includes cable service and audio andvideo programming service provided by a mobile telecommunications serviceprovider.
g. Ancillary service.
h. Digital propertythat is delivered or accessed electronically, including an audio work, anaudiovisual work, or any other item subject to tax under G.S. 105‑164.4(a)(6b).
(49) Use. The exerciseof any right, power, or dominion whatsoever over tangible personal property,digital property, or a service by the purchaser of the property or service. Theterm includes withdrawal from storage, distribution, installation, affixationto real or personal property, and exhaustion or consumption of the property orservice by the owner or purchaser. The term does not include the following:
a. A sale of propertyor a service in the regular course of business.
b. A purchaser's use oftangible personal property or digital property in any of the circumstances thatwould exclude the storage of the property from the definition of"storage" in subdivision (44) of this section.
(50) Use tax. The tax imposedby Part 2 of this Article.
(50c) Video programming. Programmingprovided by, or generally considered comparable to programming provided by, atelevision broadcast station, regardless of the method of delivery.
(51) Wholesale merchant. A person engaged in the business of any of the following:
a. Making wholesalesales.
b. Buying ormanufacturing tangible personal property, digital property, or a service andselling it to a registered resident or nonresident retail or wholesale merchantfor resale.
c. Manufacturing,producing, processing, or blending any articles of commerce and maintaining astore, warehouse, or any other place that is separate and apart from the placeof manufacture or production for the sale or distribution of the articles,other than bakery products, to another for the purpose of resale.
(52) Wholesale sale. Asale of tangible personal property, digital property, or a service for thepurpose of resale. The term includes a sale of digital property forreproduction into digital or tangible personal property offered for sale. Theterm does not include a sale to a user or consumer not for resale or, in thecase of digital property, not for reproduction and sale of the reproducedproperty. (1957,c. 1340, s. 5; 1959, c. 1259, s. 5; 1961, c. 1213, s. 1; 1967, c. 1110, s. 6;1973, c. 476, s. 193; c. 1287, s. 8; 1975, c. 104; c. 275, s. 6; 1979, c. 48,s. 2; c. 71; c. 801, s. 72; 1983, c. 713, ss. 87, 88; 1983 (Reg. Sess., 1984),c. 1097, ss. 4, 5; 1985, c. 23; 1987, c. 27; c. 557, s. 3.1; c. 854, ss. 2, 3;1987 (Reg. Sess., 1988), c. 1044, s. 3; c. 1096, ss. 1‑3; 1989, c. 692,s. 3.2; 1989 (Reg. Sess., 1990), c. 813, s. 13; 1991, c. 45, s. 15; c. 79, ss.1, 3; c. 689, s. 190.1(a); 1991 (Reg. Sess., 1992), c. 949, s. 3; 1993, c. 354,s. 16; c. 484, s. 1; c. 507, s. 1; 1995 (Reg. Sess., 1996), c. 649, s. 2; 1996,2nd Ex. Sess., c. 14, ss. 13, 14; 1997‑6, s. 7; 1997‑370, s. 1;1997‑426, s. 4; 1998‑22, s. 4; 1998‑55, ss. 7, 13; 1998‑98,ss. 13.1(a), 106; 1999‑337, s. 28(a), (b); 1999‑360, s. 6(a)‑(c);1999‑438, s. 4; 2000‑153, s. 4; 2000‑173, s. 9; 2001‑347,ss. 2.1‑2.7; 2001‑414, s. 14; 2001‑424, s. 34.17(b); 2001‑430,ss. 1, 2; 2001‑476, s. 18(a); 2001‑489, s. 3(a); 2002‑16, ss. 1, 2, 3; 2002‑170, s. 6; 2003‑284,s. 45.2; 2003‑400, ss. 13, 14; 2003‑402, s. 12; 2004‑124, s.32B.3; 2004‑170, ss. 18, 19; 2005‑276, ss. 33.2, 33.3; 2006‑33,s. 1; 2006‑66, ss. 24.10(a), 24.17(a); 2006‑151, s. 2; 2006‑162,s. 5(a); 2006‑168, ss. 4.1, 4.3; 2006‑252, ss. 2.25(a), (a1), (c),2.26; 2007‑244, s. 1; 2007‑323, ss. 31.14(a), 31.20(a), 31.23(b);2008‑107, s. 28.12(a); 2009‑445, s. 11; 2009‑451, s.27A.3(d), (g).)