The Secretary may require a wholesale dealer or a retail dealer to furnish a bond in an amount that adequately protects the State from a wholesale dealer's or a retail dealer's failure to pay taxes due under this Part. A bond must be conditioned on compliance with this Part, payable to the State, and in the form required by the Secretary. The amount of the bond is two times the wholesale or retail dealer's average expected monthly tax liability under this Article, as determined by the Secretary, provided the amount of the bond may not be less than two thousand dollars ($2,000) and may not be more than two million dollars ($2,000,000). The Secretary should periodically review the sufficiency of bonds required of dealers, and increase the amount of a required bond when the amount of the bond
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The Secretary may require a wholesale dealer or a retail dealer to furnish a bond in an amount that adequately protects the State from a wholesale dealer's or a retail dealer's failure to pay taxes due under this Part. A bond must be conditioned on compliance with this Part, payable to the State, and in the form required by the Secretary. The amount of the bond is two times the wholesale or retail dealer's average expected monthly tax liability under this Article, as determined by the Secretary, provided the amount of the bond may not be less than two thousand dollars ($2,000) and may not be more than two million dollars ($2,000,000). The Secretary should periodically review the sufficiency of bonds required of dealers, and increase the amount of a required bond when the amount of the bond furnished no longer covers the anticipated tax liability of the wholesale dealer or retail dealer and decrease the amount when the Secretary determines that a smaller bond amount will adequately protect the State from loss.
For purposes of this section, a wholesale dealer or a retail dealer may substitute an irrevocable letter of credit for the secured bond required by this section. The letter of credit must be issued by a commercial bank acceptable to the Secretary and available to the State as a beneficiary. The letter of credit must be in a form acceptable to the Secretary, conditioned upon compliance with this Article, and in the amounts stipulated in this section. (1969, c. 1075, s. 2; 1991, c. 689, s. 272; 2012 79, s. 2.1; 2014 3, s. 9.1(b); 2016 5, s. 4.1(b); 2020 58, s. 2.6(b); repealed by 2021 180, s. 42.9(f), effective July 1, 2022.)
Subpart 4. Remote Sellers. (Effective July 1, 2022)
§ 105-113.38A. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Remote seller requirements.
A remote seller must do all of the following with respect to a remote sale:
(1) Obtain a license from the Secretary as required by this Part before accepting an order.
(2) Report, collect, and remit to the Secretary all applicable taxes as set out in this Part and Article 5 of this Chapter. A remote seller that meets the definition of a "retailer" as defined in Article 5 of this Chapter is subject to all State laws that apply to a retailer in this State. (2021-180, s. 42.9(g).)
§ 105-113.38B. (Effective until July 1, 2025) Records.
In addition to the records required to be kept under G.S. 105-113.4G, a remote seller required to be licensed must maintain the following:
(1) A list, updated annually, showing the cost price paid by the remote seller for each stock keeping unit of tobacco products.
(2) Invoices documenting remote or delivery sales to consumers in this State.
(3) Records necessary to document the cost price of purchases of all tobacco products sold to consumers in this State. (2021-180, s. 42.9(g); 2023-12, s. 3.7.)
§ 105-113.38B. (Effective July 1, 2025) Records.
In addition to the records required to be kept under G.S. 105-113.4G, a remote seller required to be licensed must maintain the following:
(1) A list, updated annually, showing the cost price paid by the remote seller for each stock keeping unit of cigars.
(2) Invoices documenting remote or delivery sales to consumers in this State.
(3) Records necessary to document the cost price, weight, or count based on the applicable tax imposed, of purchases of all tobacco products sold to consumers in this State. (2021-180, s. 42.9(g); 2023-12, s. 3.7; 2023-134, s. 42.18(c).)
§ 105-113.38C. (Effective July 1, 2022, and applicable to sales or purchases occurring on or after that date) Penalties.
A remote seller who violates G.S. 105-113.38A is subject to the following penalties:
(1) For the first violation, a penalty of one thousand dollars ($1,000).
(2) For a subsequent violation, a penalty not to exceed five thousand dollars ($5,000), as determined by the Secretary. (2021-180, s. 42.9(g).)