Sales and Use Tax Changes Effective January 1, 2017
This lesson is a guide published by NCDOR.
Read the guideWhat you'll get
A one-page notice from the Department of Revenue says repair, maintenance and installation work on real property is subject to sales or use tax and that anyone doing it must register, collect and remit the tax even if it is their only business, while capital-improvement contracts are real property contracts that generally need an affidavit (Form E-589CI) from the customer. It also lists taxable service contracts, such as monitoring or inspecting property, pools and home warranties, but it dates from 2017, so read it as an outline and confirm today's rules with the Department.
Do this week
If any of your jobs install, repair or maintain something at a customer's property, register for a sales tax account before the first one, using the registration lesson in this module.