North Carolina Exempts Service Contracts for Jets
- Sales Tax News
- Jan 27, 2016 | Gail Cole
Service contracts for qualified jet engines are exempt from North Carolina sales and use tax effective October 1, 2015.
A “qualified jet engine” is defined as an “engine certified pursuant to Part 33 of Title 14 of the Code of Federal Regulations.” Examples of a service contract include, but are not limited to, the following:
- Maintenance agreement
- Repair contract
- Warranty agreement or extended warranty agreement (not those provided at no charge to the purchaser)
North Carolina Department of Revenue Form E-505 originally listed the effective date of this exemption as March 1, 2016. A corrected version of Form E-505 has now been released. It correctly lists the effective date of the exemption for service contracts for jet engines as October 15, 2015. Read Important Notice: Revised Form E-505 Published Online for additional details.
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