Sales & Use Tax Directive 15-1

This directive is issued under the authority granted the Secretary of Revenue pursuant to N.C. Gen. Stat. § 105-264 to address a number of issues relative to the application of sales and use taxes to real property contracts or for taxpayers that enter into or perform real property contracts. The directive is revised as a result of an amendment to N.C. Gen. Stat. § 105-164.4H(c) with a retroactive date of January 1, 2015 enacted as part of S.L. 2016-94. This directive is further revised on December 22, 2016 to provide that it does not apply to a real property contract with respect to a capital improvement entered into or awarded on or after January 1, 2017 or entered into or awarded pursuant to a bid made on or after January 1, 2017.