North Carolina Sales and Use Taxes and Purchases of “Repair, Maintenance, and Installation Services” – What Local Governments Should Know
This lesson is an article published by UNC School of Government.
Read the articleWhat you'll get
A School of Government blog post written for local governments that hire contractors explains which work North Carolina taxes as repair, maintenance and installation services: five kinds of activity, from cleaning and troubleshooting to installing windows, flooring, cabinets and countertops, and how a contract that mixes taxable work with a capital improvement is treated under a 25 percent test. It is written from the buyer's side and dated December 2022, so use it for the definitions and examples and confirm how your own jobs are taxed with the Department of Revenue.
Do this week
Sort the jobs you expect to sell this year into repair, maintenance or installation work and new construction or remodeling, mark any job that mixes the two, and list those to ask the Department of Revenue about.