North Carolina Updates Definitions of Retail Trade, Retailer, and Real Property Contractor

Friday, February 12th, 2016

A man installing flooring.
North Carolina

The North Carolina Department of Revenue issued a directive on recent changes to the definitions of "retail trade," "retailer," and "real property contractor."

As of March 1, 2016, people engaged in "retail trade," including real property contractors, must treat their sales as taxable retail sales. "Retail trade" is a trade in which most of the revenue comes from selling tangible personal property, digital property, or services. Retail trade activities include purchasing goods for resale while providing services incidental to those sales.

"Retailers" are people who deliver, erect, install, or apply tangible personal property unless they (1) are solely operating as real property contractors or (2) are only in the business of providing repair, maintenance, and installation services. Sales by retailers are subject to tax. Sales by real property contractors are not subject to tax. The definition of "real property contractor" is also updated to include this new distinction.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

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