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NCDOR »   Taxes & Forms »   Sales and Use Tax »   Real Property Contracts

Real Property Contracts

A real property contract is a contract between a real property contractor and another person to a capital improvement to real property. Generally, Form E-589CI, Affidavit of Capital Improvement, must be issued and kept on file for a real property contract. Relevant technical publications regarding real property contractors are provided below.

The general State, applicable local, and applicable transit rates of sales and use tax apply to the sales price or purchase price of an item or service sold to a real property contractor for use by the real property contractor to fulfill a real property contract. The real property contractor is the consumer of the tangible personal property, digital property, or service that the real property contractor purchases, installs, or applies for other others to fulfill a real property contract and that becomes part of real property or used to fulfill the contract.

Technical Publications for Real Property Contractors

  • Sales and Use Tax Bulletins - See Real Property Contracts Bulletin
  • Updated Important Notice:  Sales Tax Base Expansion Protection Act (09-10-18)
  • Directive SD-18-1: Repair, Maintenance, and Installation Services for Real Property and Real Property Contracts (4-18-18)
  • Important Notice: Updated Form E-589CI, Affidavit of Capital Improvement (03-06-18)
  • Important Notice: Sales Tax Base Expansion Protection Act (9-6-17)
  • Important Notice: Additional Information Regarding Real Property Contracts and Retails Sales of Repair, Maintenance, and Installation Services to Real Property (3-17-17)
  • Important Notice: Transition Issues Relative to Sales and Use Tax Law Changes with Respect to Real Property Contracts; Repair, Maintenance, and Installation Services to Real Property, and Other Items (12-22-16)
  • Important Notice: Form E-589CI, Affidavit of Capital Improvement (12-8-16)
  • Directive SD-16-3: Real Property Contracts (11-15-16; Rev. 12-22-16)
  • Important Notice: Erroneous Collection of Sales Tax on a Real Property Contract (10-25-16)
  • Important Notice: Sales and Use Tax Technical Bulletins and March 1, 2016 Tax Changes (2-22-16)
  • Directive SD-16-1: Retail Trade (2-5-16; Rev. 12-22-16)
  • Important Notice: A Real Property Contract and Certain Machinery and Equipment Tax (5-12-15)
  • Important Notice: White Goods Disposal Tax and Real Property Contracts (4-15-15)
  • Directive SD-15-1: Real Property Contracts (3-17-15; Rev. 10-25-16; Rev. 12-22-16)
  • Important Notice: Real Property Contract List and Tangible Personal Property List (12-19-14)
  • Important Notice: Real Property Contracts (11-19-14)

Sales and Use Tax

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  • Real Property Contracts
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  • Repair, Maintenance, and Installation Services; and Other Repair Information
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Contact Information

North Carolina Department of Revenue

PO Box 25000
Raleigh, NC 27640-0640
General information: 1-877-252-3052
Individual income tax refund inquiries:
1-877-252-4052

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