Sales and Use Tax Directive 22-1

On June 30, 2022, Governor Cooper signed into law Session Law 2022-45. The law creates an exemption from sales and use tax for sales of qualifying items to a wildlife manager (“Exemption”). N.C. Gen. Stat. 105-164.13F.

The Exemption applies to sales made on or after October 1, 2022.

Wildlife Management Activities1 - One or more of the activities for which wildlife conservation land must be used to qualify for the wildlife conservation land classification under N.C. Gen. Stat. § 105-277.15.

Wildlife Manager2 - A person who owns land classified and taxed as wildlife conservation land under N.C. Gen. Stat. § 105-277.15.

• 1

  N.C. Gen. Stat. § 105-164.13F(a)(1) 

• 2

  N.C. Gen. Stat. § 105-164.13F(a)(2) 

Wildlife Manager - A wildlife manager who holds a valid wildlife manager exemption certificate number (“Valid Exemption Number”) may purchase qualifying items exempt from sales and use tax. A wildlife manager cannot purchase items exempt from tax prior to receiving a Valid Exemption Number. In addition, a wildlife manager cannot purchase items exempt from tax if the wildlife manager exemption certificate number is cancelled, expires, or the manager no longer qualifies for the Exemption.

Service Provider - A person who performs a service (“Service Provider”) for a wildlife manager holding a Valid Exemption Number may purchase certain qualifying items exempt from sales and use tax.

Contractors - A contractor who has a contract with a wildlife manager holding a Valid Exemption Number may purchase certain qualifying items exempt from sales and use tax.

The items that qualify for the Exemption depend on who purchases the item. The subsections below identify the qualifying items for each type of purchaser.

Items Purchased by a Wildlife Manager holding a Valid Exemption Number - To qualify, an item purchased by a wildlife manager must be used by the wildlife manager primarily for wildlife management activities and be one of the items listed below:

• Feed and feeders.
• Rodenticides, insecticides, herbicides, fungicides, and pesticides when their application is prescribed in and compatible with the objectives of the Wildlife Habitat Conservation Agreement.
• Commercial fertilizer, lime, land plaster, mulch, plant plugs, seedlings, saplings, seeds, and seed inoculants.
• Machinery used for one or more of the purposes listed in this subdivision. The term “machinery” includes implements that have moving parts or are operated by an animal. The term does not include implements operated solely by hand or motor vehicles required to be registered under Chapter 20 of the General Statutes. The purposes for which the machinery must be used are:
  • To establish, restore, enhance, or maintain wildlife habitats.
  • To access or develop access to wildlife habitats.
  • To implement other wildlife management practices, including land and forest conservation and management.
• Fuel that is measured by a separate meter or another separate device and used only to operate machinery exempt under subdivision (4) [bullet point #4] of this subsection and used for one or more of the purposes listed in subdivision (4) [bullet point #4] of this subsection. Examples of a separate device include a tank, a container, and a transfer tank.
• Fuel storage tanks, containers, transfer tanks, and pumps when used only to provide fuel to operate machinery exempt under subdivision (4) [bullet point #4] of this subsection and used for one or more of the purposes listed in subdivision (4) [bullet point #4] of this subsection.
• Materials, supplies, fixtures, and equipment that become part of or are used for one or more of the following:
  • The construction, repair, or improvement of an impoundment, wetland, or ephemeral pool specifically designed, constructed, and used for the benefit of one or more wildlife species.
  • Erosion control.
  • The installation and maintenance of infrastructure used to access land areas for wildlife management activities. Examples of this type of infrastructure include bridges, culverts, and gravel.
  • The construction and maintenance of structures used by wildlife for reproduction, travel, or cover. Examples of this type of structure include nest boxes, road crossing development, and structures providing cover or other valuable functions for life processes.
  • The construction and maintenance of fencing, signage, and other exclusion methods to protect wildlife from access by people or other species or to manipulate livestock access as a method of habitat management.
• Repair, maintenance, and installation services for items exempt under this subsection.

Items Purchased by a Service Provider - An item purchased by a service provider must meet all of the following requirements to qualify for the Exemption:

• Purchased by the service provider to perform a service for a wildlife manager holding a Valid Exemption Number;
• Qualify for the Exemption if purchased directly by the wildlife manager; and
• Be listed in the “Items Purchased by a Wildlife Manager Holding a Valid Exemption Number” subsection.

Items Purchased by a Contractor - An item purchased by a contractor must meet all of the following requirements to qualify for the Exemption:

• Purchased by the contractor to fulfill a contract with a wildlife manager holding a Valid Exemption Number;
• Qualify for the Exemption if purchased directly by the wildlife manager; and
• Be one of the following items: materials, supplies, fixtures, and equipment that become part of or are used for one or more of the following:
  • The construction, repair, or improvement of an impoundment, wetland, or ephemeral pool specifically designed, constructed, and used for the benefit of one or more wildlife species.
  • Erosion control.
  • The installation and maintenance of infrastructure used to access land areas for wildlife management activities. Examples of this type of infrastructure include bridges, culverts, and gravel.
  • The construction and maintenance of structures used by wildlife for reproduction, travel, or cover. Examples of this type of structure include nest boxes, road crossing development, and structures providing cover or other valuable functions for life processes.
  • The construction and maintenance of fencing, signage, and other exclusion methods to protect wildlife from access by people or other species or to manipulate livestock access as a method of habitat management.

A wildlife manager must complete Form E-595EA, Application for Exemption Certificate Number for Qualified Purchases (“E-595EA”) to apply for a Valid Exemption Number. In addition, a wildlife manager must attach a completed Form WM-1, Certification of Classification and Taxation as Wildlife Conservation Land Under G.S. 105-277.15, to the Form E-595EA. Once complete, the wildlife manager must submit Form E-595EA, including all required attachments, to the Department.

If approved, the Department will mail the applicant their Valid Exemption Number. A Valid Exemption Number will include a six digit exemption number that begins with the numeral nine.

A Valid Exemption Number is valid for up to three years from the date it is issued and may be renewed. A Valid Exemption Number will expire prior to three years if the wildlife manager stops engaging in wildlife management activities or if the land no longer qualifies for classification and taxation under N.C. Gen. Stat. § 105-277.15.

The Exemption expires as soon as the wildlife manager stops engaging in wildlife management activities or the land no longer qualifies. If this occurs, the person who held the exemption certificate number must notify the Department within 30 days to cancel the exemption number. Notification should be in writing and mailed to the Department at NC Department of Revenue, Registration Unit, P.O. Box 25000, Raleigh, NC 27640-0001.

A person must provide a retailer a properly completed Form E-595E, Streamlined Sales and Use Tax Certificate of Exemption (“Form E-595E”), or the required data elements, to purchase an item exempt from sales and use tax. In addition, a person must maintain records that demonstrate the purchased item qualifies for the Exemption. The following subsections provide more specific instructions based on who purchases an item.

Items Purchased by a Wildlife Manager - A wildlife manager holding a Valid Exemption Number must provide the retailer a properly completed Form E-595E, or the required data elements, to purchase a qualifying item exempt from sales and use tax. The required data elements are: the wildlife manager’s name, address, Valid Exemption Number, type of business, reason for exemption, and, if providing a paper certificate, signature. On Form E-595E, the wildlife manager should select “other” as the reason for the exemption and list 105- 164.13F in the space provided for an explanation. Click here to view a sample Form E-595E. 

A wildlife manager that purchases an item exempt from tax must maintain records that substantiate the purchased item qualifies for the Exemption.

Items Purchased by a Service Provider - A service provider must provide the retailer a properly completed Form E-595E, or the required data elements, to purchase an item exempt from sales and use tax. The Form E-595E, or required data elements, must include the following information:

• The service provider’s name
• The service provider’s address
• The service provider’s type of business
• The reason for exemption that includes all of the following information (Note: For a paper Form E-595E, select “other” and provide the reason in the space provided):
  • The wildlife manager’s name
  • The wildlife manager’s Valid Exemption Number
  • The following statement: “Service Provider 105-164.13F”
• If providing a paper Form E-595E, the service provider’s signature.

Click here to view a sample Form E-595E.

A service provider that purchases an item exempt from tax must maintain records that substantiate the item is used to provide a service for a wildlife manager who holds a Valid Exemption Number and that the item qualifies for the Exemption. The records must be maintained for at least three years.

Items Purchased by a Contractor - A contractor that purchases a qualifying item exempt from sales and use tax must provide the retailer a properly completed Form E-595E, or the required data elements. The Form E-595E, or required data elements, must include the following information:

• The contractor’s name
• The contractor’s address
• The contractor’s type of business
• The reason for exemption that includes all of the following information (Note: For a paper Form E-595E, select “other” and provide the reason in the space provided):
  • The wildlife manager’s name
  • The wildlife manager’s Valid Exemption Number
  • The following statement: “Contractor 105-164.13F”
  • If providing a paper Form E-595E, the contractor’s signature.

Click here to view a sample Form E-595E.

A contractor that purchases an item exempt from tax must maintain records that substantiate the item is used to fulfill a contract with a wildlife manager who holds a Valid Exemption Number and that the item qualifies for the Exemption. The records must be maintained for at least three years.