NCDOR Sales and Use Tax Important Notice

The Sales and Use Tax Division has issued IMPORTANT NOTICE: Updated Form E-589CI, Affidavit of Capital Improvement and updated the Form E-589CI, which incorporates legislative changes enacted by the 2017 Session of the General Assembly.

Generally, services to real property are retail sales of, or the gross receipts derived from, repair, maintenance, and installation services, unless a person substantiates that a transaction is subject to sales and use tax as a real property contract, a mixed transaction contract, or the transaction is not subject to sales and use tax. Form E-589CI, may be issued to substantiate that a contract, or a portion of work performed to fulfill a contract, is a capital improvement to real property and subject to sales and use tax as a real property contract.

The notice can be found here, and the updated form can be found here.

Questions about this information can be directed to the Department toll-free at 1-877-252-3052 or by mail to the Taxpayer Assistance Division, North Carolina Department of Revenue, Post Office Box 25000, Raleigh, North Carolina 27640-0640.