A BILL TO BE ENTITLED
AN ACT to remove the sales and use tax on college textbooks and art supplies for enrolled students.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(37a)	Satellite digital audio radio service. – A radio communication service in which audio programming is digitally transmitted by satellite to an earth‑based receiver, whether directly or via a repeater station.
(37b)	School art supply. – Defined in the Streamlined Agreement.
(37c)	School instructional material. – Defined in the Streamlined Agreement.
(37d)	School supply. – An item that is commonly used by a student in the course of study and is considered a "school supply" or "school art supply" under the Streamlined Agreement.
…."
SECTION 2.  G.S. 105‑164.13 is amended by adding a new subdivision to read:
"§ 105‑164.13.  Retail sales and use tax.
The sale at retail and the use, storage, or consumption in this State of the following tangible personal property and services are specifically exempted from the tax imposed by this Article:
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Printed Materials Group.
(14)	Public school books on the adopted list, the selling price of which is fixed by State contract.
(14a)	Recodified as subdivision (33a) by Session Laws 2000‑120, s. 5, effective July 14, 2000. 
(14b)	School instructional materials or school art supplies purchased by an enrolled student presenting at the time of purchase (i) a valid identification card from an institution of higher education as defined in G.S. 90‑270.2 and (ii) evidence that the materials or supplies are required for a course in which the student is enrolled."
SECTION 3.  This act becomes effective July 1, 2009, and applies to purchases made on or after that date.