(a)  Contractors who do not sell at retail in the regular course of business are not required to collect tax by reason of occasional or isolated retail sales.  However, those contractors who have not been classified as retailer‑contractors, but who regularly or consistently make retail sales are liable for collecting and remitting the tax on the sales price of the property.  This includes items sold across‑the‑counter such as materials, supplies and fixtures as well as appliances such as refrigerators, ranges and water heaters which the contractors might install as a part of the sale.  Contractors making sales of this nature must register with the Department and pay tax monthly on such sales.  Since contractors are not eligible to execute certificates of resale, they will have to pay tax on their purchases to the suppliers; however, the tax paid on the purchase price of property which is resold may be deducted on the monthly returns from the tax due on the sales price of such property.

(b)  Any contractor required to remit tax on his sales who feels that he should be classified as a retailer‑contractor should submit full particulars regarding the nature of his business to the Secretary for a determination of his classification.


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

Eff. February 1, 1976.