Are Photography Services Taxable In North Carolina 2017

North Carolina expanded sales tax to numerous repair, maintenance, and installation services on March 1, 2016. Start January one, 2017, taxable repair, maintenance, and installation services are farther expanded to include existent property and digital property in addition to tangible personal property, and a person whose only business activity is providing repair, maintenance, and installation services (RMI) is considered a retailer and required to register, collect and remit tax on the retail sale of those services. For the catamenia March 1, 2016 through December 31, 2016, RMI provided past a person whose only business organisation activity is providing these services are exempt.

Taxable RMI

Equally of January 1, 2017, the following repair, maintenance, and service charges are taxable when applied to tangible personal property, motor vehicles, digital property, and existent holding (except tangible personal belongings or digital property installed or applied by a real property contractor pursuant to a real belongings contract):

To keep or attempt to keep property or a motor vehicle in working order to avoid breakup and prevent deterioration or repairs
- For example, to clean, wash, or polish property
To calibrate, refinish, restore, or attempt to calibrate, refinish, or restore property or a motor vehicle to proper working order or good condition
- For case, to supplant or put together what is torn or broken
To troubleshoot, identify, or attempt to identify the source of a problem for the purpose of determining what is needed to restore property or a motor vehicle to proper working social club or proficient condition
To install, apply, connect, conform, or set into position tangible personal property, digital property, or a motor vehicle
To inspect or monitor belongings or a motor vehicle
- Does not include security or like monitoring services for real holding

Taxable repair, maintenance, and installation services for a motor vehicle include, simply are non limited to, the following:

Computer diagnostics repairs, updates, and maintenance
Electrical: e.g., battery test, charge or jump service; test fuse, visually inspect wiring or wiring components
Fluid exchanges: e.g., oil, engine coolant/antifreeze, brake, ability steering, windshield washer, etc.
Fuel system: eastward.grand., fuel lines, fuel treatment; accommodate throttle
Suspension: e.g., align, inspect steering and suspension; grease joints or bearings

The North Carolina Department of Acquirement provides the following examples of taxable transactions:

A property owner purchases tangible personal holding (TPP) and performs its own repair services. The property owner pays revenue enhancement on the TPP.
A property owner purchases TPP from a retailer and hires a handyman to install information technology. The retailer collects tax on the TPP, and the handyman collects tax on the installation service charges.
A holding possessor hires a retailer to perform repair, maintenance or service charges, and the retailer purchases TPP for the job. The retailer collects tax on the TPP and the service charges.

Exemptions

In that location are also a number of specific exemptions related to repair, maintenance, and installation services on real property. Exempt RMI charges include, but are non limited to, the post-obit:

Alteration and repair of vesture (except where the service constitutes a office of the gross receipts derived from the taxable rental of vesture or for alteration and repair of belts and shoes)
Cleaning of existent belongings (except where the service constitutes a office of the gross receipts derived from the taxable rental of an accommodation or for a pool, fish tank, or other similar aquatic characteristic)
Domicile inspections related to the grooming for or the sale of real property
Landscaping services
Self-service car washes
Services performed for a person past a related member
Services performed on a qualified shipping or jet engine
Storing a vehicle, provided the storage charge is separately stated
Towing services, provided the charges are separately stated

Although the Northward Carolina Department of Acquirement strives to educate taxpayers virtually sales tax changes, the new policies will undoubtedly cause defoliation. Recognizing this, the legislature has determined that retailers who have made a adept-faith effort to comply with the police force and collect the proper corporeality of taxation are not liable for the under-collection of sales or use taxation every bit a result of the changes in law. This applies to assessments for any reporting menses from March 1, 2016 through December 31, 2022.

See the Northward Carolina Department of Revenue for boosted information:

SD-16-4
SD-16-three (on sales tax and existent holding contracts)
Importance notice: motor vehicle repair, maintenance, and installation services; storage; and towing services
Of import notice: service contracts

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Sales taxation rates, rules, and regulations modify oftentimes. Although we hope you'll detect this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Gail Cole

Avalara Writer Gail Cole

Gail began researching and writing about sales taxation in 2012 and has been fascinated with it e'er since. She has a penchant for uncovering unusual tax facts, and endeavors to brand circuitous sales revenue enhancement laws more digestible for both experts and laypeople.