Department Of Revenue Publishes Notice About Changes To Service Contracts Print
State Government
By Administrator   
Monday, 29 September 2014 10:11

RALEIGH, (SGRToday.com) - The state Department of Revenue has released details of a change that will take effect October 1, effecting service contracts.

 
The notice reads, in part:
 
"Effective October 1, 2014, N.C. Gen. Stat. § 105-164.4(a)(11), as amended, imposes a privilege tax at the 4.75% general State and applicable local and transit rates of sales and use tax on a retailer to the sales price of or the gross receipts derived from a service contract sold at retail. Additionally, a service contract sold at retail on or after October 1, 2014 is taxed in accordance with N.C. Gen. Stat. § 105-164.4I. See Directive SD-13-5, Service Contracts, for additional information regarding the application of sales and use tax to the retail sale of a service contract sold on or after January 1, 2014 and prior to October 1, 2014."
 
Questions about the change should be directed to the Taxpayer Assistance and Collection Center at 1-877-252-3052.
 
The entire Department of Revenue notice can be accessed online at http://www.dornc.com/taxes/sales/impnotice092614_servicecontracts.pdf
Last Updated on Monday, 29 September 2014 10:12