Legislative Updates

Sales Tax Changes
Within the latest state budget, several tax changes were made, including lowering income tax rates for both individuals and businesses and expansion of the sales tax to repair, maintenance and installation services.

Installation, Repairs, and Maintenance

  • Effective March 1, 2016
  • Removes the sales tax exemption for installation charges
  • Expands the sales tax base to include gross receipts from installation, repair, and maintenance services of tangible personal property. Repair, maintenance, and installation services are defined as: 
    • “To keep or attempt to keep tangible personal property or a motor vehicle in working order to avoid breakdown and prevent repairs.breakdown and prevent repairs.
    • To calibrate, restore, or attempt to calibrate or restore tangible personal property or a motor vehicle to proper working order or good condition. This activity may include replacing or putting together what is torn or broken.
    • To troubleshoot, identify, or attempt to identify the source of a problem for the purpose of determining what is needed to restore tangible personal property or a motor vehicle to proper working order or good condition.
    • 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.”

Retail Sales/Use Tax & Surveyors
Aside from the recent budgetary tax changes, the existing exemption for the surveying industry as it relates to retail sales and use tax remains intact.

§ 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, digital property, and services are specifically exempted from the tax imposed by this Article:

  • Sales to a professional land surveyor of tangible personal property on which custom aerial survey data is stored in digital form or is depicted in graphic form. Data is custom if it was created to the specifications of the professional land surveyor purchasing the property. A professional land surveyor is a person licensed as a surveyor under Chapter 89C of the General Statutes.

                                                                                                                                                                                              Kerri Burke, VP McGuireWoods Consulting

       *This information is not intended nor should be construed as tax advice. For specific tax questions, please contact the Department of Revenue.                                                                                                                                                                                 

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NO COMPANY CHECKS or CREDIT CARDS ARE ALLOWED. 

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