Tax News

CCH (cch.taxgroup.com) reports:

Guidance regarding the application of North Carolina sales and use taxes to bundled transactions effective October 1, 2007, is provided. Tax applies to the sales price of a bundled transaction unless one of the following applies:
-- all of the products in the bundle are tangible personal property, the bundle includes one or more of the exempt products listed (food, drugs, or medical devices, equipment, or supplies), and the price of the taxable products in the bundle does not exceed 50% of the price of the bundle;
-- the bundle includes a service and the retailer determines an allocated price for each product in the bundle based on a reasonable allocation of revenue that is supported by the retailer's business records kept in the ordinary course of business (in such a circumstance, tax is applicable to the allocated price of each taxable product in the bundle); or
-- the price of the taxable products in the bundle does not exceed 10% of the price of the bundle and none of the other two options (specified immediately above) apply.