Effective March 1, 2016, North Carolina’s general 4.75% sales and use tax rate applies to the sales price of or gross receipts from repair, maintenance, and installation services sold at retail and sourced to North Carolina. The applicable local and transit sales and use tax rates also apply to repair, maintenance, and installation services. The complementary use tax is applicable to the purchase of repair, maintenance, and installation services sourced to North Carolina.Also effective March 1, 2016, – retailer” is amended and defined in part, as “[a] person engaged in business of delivering, erecting, installing, or applying tangible personal property for use in this State … unless the person is one or more of the following: 1. A person that solely [emphasis added] operates as a real property contractor, or 2. A person whose only [emphasis added] business activity is providing repair, maintenance, and installation services where the person’s activities do not otherwise meet the definition of a retail trade.” There are exemptions such as for repair, maintenance and installation services purchased for resale and for services provided on machinery and equipment which otherwise qualifies for exemptions. Details are discussed in the Directive. (Directive No. SD-16-2, North Carolina Department of Revenue, February 5, 2016; N.C. Gen. Stat. §105-164.3(35))