The new year is here, and it has come with new sales tax laws in North Carolina. At Sheer Comfort Heating & Air Conditioning, we want to make sure that our customers are aware of all tax changes that will affect our HVAC services. Here is a brief overview of NC sales tax changes for 2017.
Why are there new tax laws in NC?
The new state budget passed in 2015 has just taken effect, and homeowners throughout Western North Carolina may be wondering what that means for them. This budget does indeed increase sales taxes on a number of services, and certain elements of HVAC fall in that category. So why are North Carolinians paying more taxes in 2017? Well, if the budget plan is effective, that won’t be the case. In tandem with the sales tax hike, the legislature initiated roughly $400 million in income tax cuts meant to alleviate that burden for North Carolina citizens.
NC sales tax changes for 2017
So what do you need to know about the new NC sales tax changes? Fortunately, the changes are fairly simple and straightforward. The key things to know are that most capital improvements and real property contracts are still exempt from sales tax, whereas repairs and one-time sales are now taxable. Broken down further:
Taxable:
· Walk-in HVAC sales
· HVAC repairs not performed in the course of a large-scale project
Tax exempt:
· New construction HVAC installation
· Capital improvements to real property such as replacement of an entire HVAC unit
As the customer, it’s important to know what the Department of Revenue requires for you to receive tax exemption. In order for installation or replacement to qualify as capital improvements, you must submit an E-589CI Affidavit.
In accordance with the average sales tax rate in Asheville and the surrounding area, you can expect to pay about 7% more for your furnace and air-conditioning repairs. Prevent costly repairs in the future with a maintenance plan from Sheer Comfort Heating & Air Conditioning. Call us today!