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NC Taxes
Services |
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Effective 1 March 2016 a
new sales tax law impacting businesses goes into effect
in North Carolina.
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New taxes will be imposed on certain repair services and
service contracts.
This is a departure from taxing only personal
property.
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The sales tax will apply to repair, maintenance, and
installation (RMI).
RMI Services are those made to troubleshoot or keep personal
property in working order, to caligrarte or restoer personal
property, ore to install personal property. |
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There are two exemptions to the new law.
This tax does not apply to RMI Services performed by:
1.
A
person whose only business activity is to provide RMI
services.
2.
A person whose business activity is primarily performing
real property contracts.
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Beginning 1 March 2016 any sale or renewal of service
contracts sold at retail will be subject to the new sales
tax.
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The sales tax on RMI services will be 4.75%.
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This will impact many businessses including shoe repair,
watch repair, clock repair, jewelry repair, airconditioner
repair, motor vehicle repair, etc.
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Sources:
NC RMI Services Sales Tax Law
By Bill
Williams
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