Sales and Use Tax Directive 18-2

This directive is issued under the authority granted the Secretary of Revenue pursuant to N.C. Gen. Stat. § 105-264 to address the application of sales and use tax concerning the effective date of a tax change applicable to billings for the lease or rental of tangible personal property or digital property provided and billed on a monthly or other periodic basis. The directive is specifically applicable to a lease or rental agreement, entered into prior to the date of this directive, for a taxable item billed on a monthly or other periodic basis, on or after September 1, 2018.