Important Notice: Sales and Use Tax Bulletins Updated for 2025

Issued By:  Sales and Use Tax Division
Date:             January 3, 2025

On January 1, 2025, the Sales and Use Tax Division (“Division”) published updated 2025 Sales and Use Tax Bulletins (“SUTBs”). The updated SUTBs are based on the law as of January 1, 2025, and supersede all prior Sales and Use Tax Bulletins.

The Division updated the SUTBs to include laws enacted during 2024 and to provide additional guidance on existing laws. The updates include new or updated guidance addressing the following topics:

Remote Seller Transactional Nexus Threshold

The Division updated SUTB section 2-2 to show the repeal of the remote seller transactional nexus thresholds.

Boats

The Division added a definition of “boat” to SUTB section 15-1 and examples of boats and items that are not boats in SUTB section 15-3.

Qualifying Spirituous Liquor

The Division added SUTB section 24-9 that includes information about the direct pay permit for qualifying spirituous liquor and the option for a seller to elect to collect and remit the maximum tax on behalf of the purchaser.

Other Updates

The Division made additional updates in the SUTBs that include:

  • Washington County Tax Rate – Updated SUTB subsection 1-3B to show the updated local sales and use tax rate in Washington County.
  • Form-589P, Affidavit of Tax Paid by Real Property Contractor – Updated SUTB sections 72-5 and 72-8 to provide information about new Form-589P, Affidavit of Tax Paid by Real Property Contractor. This includes a chart that shows the differences between Form E-589P and Form E-589CI, Affidavit of Capital Improvement.
  • Exemption for Qualifying or Conditional Farmers – Updated SUTB subsection 27-5C to add culvert pipe as an example of an item that does not qualify for exemption.
  • Hyperlinks – Added hyperlinks throughout the SUTBs to allow for easy navigation to forms available on the Department’s website.

Additional Resources

You can find additional information about North Carolina Sales and Use Tax on the Department’s website. If you have additional questions, you may contact the Department.

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