Article 39

Article 39 Sales & Use Tax is the original local-option sales tax for counties authorized in 1971. The tax is set at one percent (1%) of eligible sales. Beginning in October 2003, Article 39 contains food tax as instructed in G.S. 105-469. All 100 counties in North Carolina currently levy this tax.

Article 39 Sales and Use Tax is collected by the NC Department of Revenue then distributed to each taxing county on a point of delivery basis. Under the point of delivery allocation method, revenue is distributed to the county in which goods are delivered. The point of delivery is typically where the sales transaction occurs. However, larger items (such as construction materials) may be delivered to the purchaser’s home or where the goods are to be used. Sales tax collections are credited to the county in which the delivery site is located, regardless of where the retailer is located.