North Carolina General Statutes Chapter 144. State Flag, Official Governmental Flags, Motto, and Colors § 144-9. Retirement of a flag of the United States of America or the State of North Carolina

(a) A State institution or a political subdivision of the State in possession of a flag of the United States of America or the State of North Carolina that is no longer a fitting emblem for display because it is worn, tattered, or otherwise damaged shall make arrangements for its respectful disposal and may deliver the flag to the Department of Military and Veterans Affairs for disposal. The Department shall accept a flag delivered to it and shall make arrangements for its respectful disposal.

(b) The Department of Military and Veterans Affairs shall accept, at no charge, a worn, tattered, or otherwise damaged flag of the United States of America or the State of North Carolina from a citizen of the State and shall make arrangements for its respectful disposal. The Department shall establish a flag retirement program to encourage citizens to send in or drop off worn, tattered, or otherwise damaged flags at the Department's office in Raleigh and at any Veterans Home or Veterans Cemetery in the State and may establish other locations for flag drop-off as it deems appropriate. The Department shall advertise the flag retirement program on its website and by printed posters placed at all flag drop-off locations.

(c) An official flag of the State that is no longer a fitting emblem for display because it is worn, tattered, or otherwise damaged may be respectfully retired by fire.