Notices and Updates

The 2017 legislative session brought many changes to the Revenue laws and the North Carolina Department of Revenue. These changes are detailed in the 2017 Tax Law Changes by taxing schedule and General Statute.

2017 Revenue Law Changes

Effective January 1, 2018, all corporate annual reports must be filed directly with the Secretary of State's Office.

Prior to the law change, corporations could file their North Carolina income tax returns and North Carolina annual reports together with the N. C. Department of Revenue. In 2018, corporations must file their annual reports directly with the Secretary of State, and can no longer file them with the N. C. Department of Revenue as part of their income tax filings.

The motor fuels and alternative fuels tax rate for 2018 will increase from 34.3 cents per gallon to 35.1 cents per gallon.

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Form E-505 is revised and is available on the Department’s website. The minor revision is to properly reflect the defined term “Mixed Service Contract” at the bottom of page six to correspond with the term enacted by the 2017 Session of the General Assembly.

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The N.C. Department of Revenue launched its redesigned website on Thursday, Dec. 7. The new site is easier to navigate and more accessible for taxpayers and the public. It is also the first step in an upgrade of the agency’s electronic services.

[video:https://youtu.be/GesoNQ8w-rU]

Here are the key things you need to know about the redesigned website:

The new codes are consistent with the Federation of Tax Administrators (FTA) uniform product codes. The new codes will be used with the December 2017 motor fuels tax returns, which are due in January 2018

Motor Fuels Tax

Some products have been removed from previous versions of the list of products exempt from Sales and Use Tax.

Full Details

Sales and Use Tax

The North Carolina Department of Revenue recognizes that recent hurricanes may have affected the ability of certain taxpayers to meet North Carolina’s filing deadlines. The Department will work with taxpayers, on a case-by-case basis, and will waive any penalties assessed against taxpayers who cannot meet state filing or payment requirements as a result of Hurricanes Harvey, Irma, and Maria and generally recognize the federal due date of January 31, 2018. Additionally, the Department is allowing an extension of 30 days for filing returns for sales and use taxes for affected taxpayers.

Purchasers may elect to have seller collect and remit sales and use taxes on certain purchases.

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Sales and Use Tax

The notice communicates technical corrections signed into law as S.L. 2017-212, on October 9, 2017.

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Sales and Use Tax