Gross Receipts/Special Sales Tax

A 1% tax is applicable to all prepared food and beverages sold at retail for consumption, on or off the premises, and applies to any retailer with sales in Cumberland County subject to sales tax imposed by the State of North Carolina under N.C.G.S. §105-164.4(a). This tax is in addition to the combined state and local sales tax collected and remitted to the North Carolina Department of Revenue.

Prepared Food and Beverage is defined as any food or beverage which has been altered by preparing, combining, dividing, heating or serving in order to make the food or beverage available for immediate consumption. Please see the Bulletin from the NC Department of Revenue for further explanation.

The customer is charged the prepared food and beverage tax as part of their total sale. The business collects the tax and holds it as a trustee for the county, then remits to the county monthly on or before the 25th day of the month following the month in which the tax accrues. For example, tax collected during the month of June must be reported and paid by July 25th.

Forms:

• Prepared Food & Beverage Tax Application
• Prepared Food & Beverage Tax Return and Instructions

The rental vehicle tax is a substitution for the property tax on a short-term leased or rental vehicle. The tax is levied on the gross receipts of the vehicle rental at a rate of 1.5% for Cumberland County and an additional 1.5% if the rental location is situated in the municipal limits of Fayetteville, Hope Mills, Spring Lake or Stedman. This tax is independent of rental vehicle taxes administered by the North Carolina Department of Revenue

A rental vehicle is defined as a motor vehicle of the private passenger type, the cargo type with a weight of 26,000 pounds or less and not requiring a commercial driver’s license, or a trailer with a gross vehicle weight of 6,000 pounds or less.

The customer is charged the rental vehicle tax as part of their total rental. The business collects the tax and holds it as a trustee for the county, then remits to the county monthly on or before the 20th day of the month following the month in which the tax accrues. For example, tax collected during the month of June must be reported and paid by July 20th.

Forms:

• Rental Vehicle Tax Application
• Rental Vehicle Tax Return and Instructions

The heavy equipment tax is a substitution for the property tax on short-term leased or rental heavy equipment by a company engaged in the business of leasing and/or renting heavy equipment to the general public. The tax is levied on the gross receipts of the heavy equipment rental at a rate of 1.2% for Cumberland County and an additional 0.8% if the rental location is situated in the municipal limits of Fayetteville, Eastover, Linden, Spring Lake, Stedman or Wade. This tax is independent of any taxes administered by the North Carolina Department of Revenue.

Heavy equipment is defined as earthmoving, construction, or industrial equipment that is mobile, weighs at least 1,500 pounds and meets any of the following descriptions:

• Self-Propelled Vehicle (Not designed to be driven on the highway)
• Industrial Lift Equipment
• Industrial Material Handling Equipment
• Industrial Electrical Generation Equipment

To qualify, 50% of the company’s income must be derived from the rental of qualified heavy equipment. If qualified, the company must collect the tax and file an annual application in January, which includes a detailed list of all exempted property. If your company does not qualify, you are required to annually list your heavy rental equipment and other taxable property on a Cumberland County Business Listing Form.

The customer is charged the heavy equipment tax as part of their total rental. The business collects the tax and holds it as a trustee for the county, then remits to the county quarterly on or before the last day of the month following the calendar quarter in which the tax accrues. For example, tax collected during the months of January-March must be reported and paid by April 30th.

Forms:

• Heavy Equipment Tax Application
• Heavy Equipment Return and Instructions

A 6% tax is imposed and levied on the gross receipts derived from the rental of an accommodation, and applies to any retailer with sales in Cumberland County subject to the sales tax imposed by the State of North Carolina under N.C.G.S. §105-164.4(a)(3). This tax is in addition to the combined state and local sales tax collected and remitted to the North Carolina Department of Revenue.

An accommodation is defined as a hotel room, motel room, residence, cottage, or a similar lodging facility for occupancy by an individual. The tax applies to accommodations rented to the same person for a period of less than 90 continuous days. Please read this Important Notice published by the NC Department of Revenue, which provides further details on the types of retailers and charges subject to the room occupancy tax.

The customer is charged the room occupancy tax as part of their total sale. The business collects the tax and holds it as a trustee for the county, then remits to the county monthly on or before the 20th day of the month following the month in which the tax accrues. For example, tax collected during the month of June must be reported and paid by July 20th.

Forms:

• Room Occupancy Tax Application
• Room Occupany Tax Return