For Immediate Release
December 19, 2013

North Carolina – New State Ruling Imposes Sales Tax on Service Contracts

North Carolina – New State Ruling Imposes Sales Tax on Service Contracts

North Carolina – New State Ruling Imposes Sales Tax on Service Contracts

As of January 2014, North Carolina now imposes sales tax on service contracts. Service contracts are defined to include warranty agreements, maintenance agreements, repair contracts, or any other agreement in which a seller agrees to maintain or repair tangible personal property.

Services now subject to tax include laptop repair contracts. The sales tax still does not apply to repairs made on a single repair transaction, if the single repair transaction is not completed pursuant to a “service contract”.

N.C. Gen. Stat. § 105-164.4(a)(11)

DORNC Website

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com

 

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