Time to Tax Repairs in North Carolina
- Dec 3, 2015 | Gail Cole
It will soon be time to tax repair services in North Carolina. Effective March 1, 2016, labor and service charges for repairs of watches, clocks and jewelry are subject to state and local sales tax. Charges for materials, currently subject to sales tax, remain taxable.
Until March 1, 2016, separately stated labor and service charges are exempt from sales and use tax, which applies only to charges for materials furnished in connection with the work. In the event labor and service charges are combined with charges for materials, repairmen are entitled to collect and remit sales tax on 10% of the combined price or charge. The 10% represents “the retail charge for the materials furnished.” Additional information.