Notices and Updates

NCDOR Publishes Directive on Repair, Maintenance and Installation Services to Real Property and Real Property Contracts

The NCDOR has published a directive regarding repair, maintenance and installation services to real property and real property contracts. The directive addresses a number of issues concerning the application of sales and use taxes for services to real property. The issues addressed are based on recent law changes and inquiries or suggestions received by the department.

Read the directive.

Written Determination Published on Car Wash Services

A written determination applies the tax law to a specific set of existing facts furnished by a particular taxpayer. A written determination is applicable only to the individual taxpayer addressed and as such has no precedential value except to the taxpayer to whom the determination is issued.

Read the determination.

NCDOR Publishes Updated Form E-589CI, Affidavit of Capital Improvement

The form was updated to incorporate legislative changes enacted by the 2017 Session of the General Assembly. Generally, services to real property are retail sales of or the gross receipts derived from repair, maintenance, and installation services, unless a person substantiates that a transaction is subject to sales and use tax as a real property contract, a mixed transaction contract, or the transaction is not subject to sales and use tax.