Sales of new or used boats and aircraft are subject to 3% state sales or use tax, up to a maximum tax of $1,500 per item. Local sales and use taxes are not imposed on these sales.
Dealers are liable for collecting the tax from buyers. However, if an aircraft or boat is purchased from an out-of-state dealer who is not obligated to collect North Carolina tax, the buyer becomes liable for remitting the use tax to the state, along with Form E-555, Boat and Aircraft Return. Payment and the return are due within 20 days following the end of the month in which the purchase was made.
Individuals who are not engaged in the business of selling boats and aircraft are not subject to the sales and use tax, as these transactions are considered isolated or occasional sales.
Aircraft and boats that are gifted or inherited, or are obtained by any means other than a sale, are not subject to the sales or use tax.
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