- Taxation of additional Repair, Maintenance and Installation services – Taxes will apply to equipment attached to the building.
- Agreements signed before March 1, 2016 lock-in the tax plan that only taxes freestanding equipment for the term of the agreement.
In a Nutshell: Service providers used to collect State sales tax only on the work performed to equipment that was not attached or affixed to the building. After March 1, State tax will be collected for all work performed to any equipment.
According to the North Carolina Department of Revenue, beginning March 1, 2016, the sales tax base is expanded to include repair, installation and maintenance services (“RMI services”). RMI services are services performed to determine what needs to be done to keep tangible personal property in working order, to keep such property in working order and to restore such property to working order. Tangible personal property for this purpose specifically includes motor vehicles. RMI services also include services to install or apply tangible personal property.
Consult with your tax professional for more details.
Why Planned Maintenance is even more important now:
Repair work will become more expensive with the application of state tax on fixed equipment. A proper planned maintenance program reduces total cost of ownership – including costly repairs.
About BlueHat’s Planned Maintenance Program:
BlueHat’s Planned Maintenance Program is designed to save you money over the long term.
How it works:
- First, we’ll perform a thorough site survey to inventory all of the equipment you’d like to cover.
- We start with a thorough once-over service to get all equipment up-to-spec.
- Next, we’ll provide you with a price for ongoing maintenance – and a convenient payment plan.
- We’ll schedule your regular maintenance services and get to work!
To schedule your survey, call: 919-773-9223