17 NCAC 07B .2608          PLUMBING: HEATING CONTRACTORS: PURCHASES

Contractors are deemed to be the users or consumers of building materials and other tangible personal property which they use in the performance of lump‑sum, cost‑plus or time and material contracts to furnish and install a plumbing, heating, air conditioning or electrical system or which they use in making repairs, alterations or additions to an existing system.  Contractors are therefore liable for payment of the applicable statutory state and local sales and use tax on their purchases of such property.  The tax paid on such purchases is a part of the cost of the property and may be recovered in the contract price; however, the tax shall not be charged as a separate item to the property owner.  Contractors must also pay the tax on purchases of property which they resell unless such contractors have been classified by the Department of Revenue as retailer‑contractors and have been authorized to use the Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form E-595E.  The tax due on all purchases by contractors shall be paid to the suppliers unless the purchases are made from out‑of‑state vendors who do not collect North Carolina sales or use tax.  Contractors must remit the tax on such out‑of‑state purchases directly to the Department of Revenue.

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑262;

Eff. February 1, 1976;

Amended Eff. October 1, 2009; October 1, 1993; October 1, 1991.