Bill > S303

This bill repeals the service tax in North Carolina by making comprehensive changes to the state's tax code. Specifically, the bill removes various provisions related to taxation of services, including repair, maintenance, and installation services, service contracts, and other service-related transactions. Key changes include eliminating tax exemptions for specific services like interior design, towing, and certain repairs, and removing definitions and provisions related to service contracts and service contract facilitators. The bill removes language about sourcing services, bundled transactions involving services, and references to service-related tax calculations. It also updates definitions in the tax code to remove service-related terminology, effectively eliminating the taxation of most services that were previously taxable. The bill will become effective on July 1, 2025, and will apply to services provided on or after that date, giving businesses and the state time to prepare for the tax code changes.

https://www.ncleg.gov/BillLookUp/2025/S303