HEADLINES

NCDOR Publishes a Notice on Transition Issues Relating to Sales and Use Tax Law Changes

The recently passed law changes cover real property contracts; repair, maintenance and installation services to real property and other items. full details

NCDOR Announces Motor Fuels Tax Rate for 2017

New rate for gasoline, diesel, and alternative fuels will be effective Jan. 1, 2017. full details

DOR Publishes Form E-589CI, Affidavit of Capital Improvement and a Corresponding Important Notice

Form E-589CI, Affidavit of Capital Improvement, is generally required to substantiate that a contract, or a portion of work to be performed to fulfill a contract, is to be taxed for sales and use tax purposes as a real property contract with respect to a capital improvement to real property. full details

NCDOR Fayetteville Service Center Reopens

Office building which houses local service center experienced significant damage due to Hurricane Matthew. full details

Montgomery County Declared Eligible for Hurricane-Related Tax Relief

The N.C. Department of Revenue has published an updated notice that includes the complete list of all 49 Designated Counties that are eligible for relief. full details

NCDOR Sends Law Change Mailing to Sales and Use Taxpayers

Mailing will provide additional guidance to the annual Form E-505, which is available on the department’s website. full details

NCDOR Publishes Written Determinations

Written determinations are issued by the department in response to a taxpayer seeking specific tax advice. full details

NCDOR Sends Law Change Letter to Contractors

The letter will go to HVAC, electrical, and plumbing contractors and will highlight sales tax law changes that go into effect Jan. 1, 2017, for the following: repair, maintenance, and installation services, real property contracts and service contracts. full details

DOR Publishes Sales and Use Tax Directive - Real Property Contracts: SD-16-3

Key Points of this directive include:


• Definitions for "real property," "real property contract," and "capital improvement" are enacted.
• A contract is taxed as a real property contract where the contract is for new construction, reconstruction, or remodeling with respect to a capital improvement to real property.
• Form E-589CI, Affidavit of Capital Improvement, will be required for many contracts to give notice to retailer-contractors and sub-contractors that any subcontract work should be taxed as a real property contract.
• Certain transactions by definition are capital improvements such as "landscaping services."
full details

DOR Publishes Sales and Use Tax Directive - Repair, Maintenance, and Installation Services: SD-16-4

Key Points of this directive include:


• A person that only provides repair, maintenance, and installation services is a retailer.
• The imposition of sales and use tax on repair, maintenance, and installation services is expanded to digital property and real property, with certain statutory exemptions enacted.
• The definition of repair, maintenance, and installation services was expanded and clarified.
full details

Law Change Expands Taxation and Clarifies Issues for Service Contracts

This notice addresses the application of the sales and use tax laws related to service contracts for the following changes:


• Expands sales and use tax to a contract that is for monitoring or inspecting.
• Provides that a contract may be for a period of time or some other defined measure (i.e. number of hours).
• Expands sales and use tax to a service contract for a pool, fish tank, or similar aquatic feature.
• Clarifies by definition that a home warranty is a service contract.
full details

Motor Vehicle Service Contracts

The notice addresses the application of the sales and use tax laws for the following changes:


• The definition of the term "motor vehicle service contract."
• The expansion of the exemption from sales and use tax to include contracts for one or more components, systems, or accessories of a motor vehicle sold by a motor vehicle dealer or by or on behalf of a motor vehicle service agreement company.
full details

Notice Issued on Motor Vehicle Repair, Maintenance, and Installation Services; Storage; and Towing Services

The notice addresses the application of the sales and use tax laws related to or concerning motor vehicles for the following:


• Changes to the definition of "repair, maintenance, and installation services."
• A person who only provides "repair, maintenance, and installation services" is a "retailer."
• Enactment of specific exemptions for certain charges for repair, maintenance, and installation services.
• Separately stated storage charges for a motor vehicle are exempt from sales and use tax.
• Separately stated towing services for a motor vehicle are exempt from sales and use tax.

full details

Tax Relief Available to Victims of Hurricane Matthew

The N.C. Department of Revenue has published notices about penalty waivers and other benefits available to certain taxpayers. full details

NCDOR Publishes Important Notices on Sales Tax Law Changes

• NCDOR Publishes Form E-505
• Sales by Certain Nonprofits are No Longer Exempt from Sales Tax
• Law Change Allows Real Property Contractors to Use Erroneous Collection of Sales Tax to Offset Use Tax Due
• Certain Service Contracts Sold to a Professional Motorsports Team is Exempt from Sales Tax
• Notice Published On Fuel and Piped Natural Gas Used Solely for Comfort Heating by Certain Manufacturers
• NCDOR Publishes Notice on Alternate Highway Use Tax on a Lease or Rental Contract Sold to Another Retailer
• Privilege Tax Imposed on Certain Recyclers

Asheville Service Center Reopens in New Location

New office features more private rooms for meetings with taxpayers. full details

NCDOR Publishes Rules Regarding Market-Based Sourcing in the NC Register

Notice about market-based sourcing provides information on the publication of proposed administrative rules and includes examples and text of the rules. The agency has also announced a date for a public hearing to provide the opportunity for comment from the public. full details

S&U Exemption Enacted for Certain Products for Use in an Accepted Wastewater Dispersal System

This notice covers the exemption effective October 1, 2016 for certain products made of recycled materials. full details

DOR to Adopt Rules Regarding Market-Based Sourcing

Notice provides information on the adoption of administrative rules regarding market-based sourcing. full details

Corporate Tax Rate for Years Beginning on or after January 1, 2017 Will be Reduced by 1%

Notice provides information on the reduction of the corporate tax rate effective January 1, 2017. full details

Cherokee and Jackson Counties levy an Additional 0.25% Local Sales and Use Tax

The local rate increase from 2% to 2.25% is effective October 1, 2016. full details

 

 

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