Attention to all
Repair, Maintenance, Installation, Automotive, etc.
Effective March 1, 2016, N.C. Gen. Stat. § 105-164.4(a)(16) imposes the general 4.75% State rate of sales and use tax “to the sales price of or the gross receipts derived from repair, maintenance, and installation services” sold at retail and sourced to the State. The applicable local (2.00% or 2.25%) and applicable transit (0.50%) rates of sales and use tax also apply to the sales price of or the gross receipts derived from such services.
Defined by activities such as: to keep or attempt to keep tangible personal property or a motor vehicle in working order to avoid breakdown and prevent repairs or to install or apply tangible personal property except tangible personal property installed or applied by a real property contractor pursuant to a real property contract. ~ for more information call our office.
An example: A person engaged in business in the state of selling appliances at retail is a retailer. Any charges by such person on or after March 1, 2016 for a service call for troubleshooting only is a charge for repair, maintenance, and installation services and is subject to tax.
A sampling of services generally considered repair, maintenance, and installation services
are listed below.
Re-string or re-grip tennis rackets, golf clubs, or musical instruments.
Tune pianos or other musical instruments.
Repair laptops, cell phones, remove viruses/malware, conduct diagnostic tests, or adjust computer settings.
Please note there are some exemptions to this NEW statute like:
housekeeping of real property