17 NCAC 07B .0805. SIGN FABRICATING AND PAINTING

(a)  Retail sales of electrical, neon or other made‑to‑order signs are subject to the applicable statutory state and local sales or use tax.  If the vendor makes a separate charge for installing signs which he makes and sells, the charge for installation shall not be subject to tax provided it is in addition to the sales price of the sign and is separately stated on the customer's invoice and in the vendor's records.  If the vendor enters into a separate contract to furnish maintenance or repair service subsequent to the sale of the sign, charges for such services are not subject to the sales or use tax, but receipts from the sale of all tangible personal property used in making the repairs are taxable.

(b)  Persons engaged in the business of painting signs on buildings or other real or personal property belonging to others are rendering services, and their gross proceeds are not subject to sales or use tax. Sales of paint, brushes, and other tangible personal property to such sign painters are sales to purchasers for use or consumption and subject to the applicable statutory state and local sales or use tax.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑262; Article 39; Article 40; Article 42; Article 43; Article 44;

Eff. February 1, 1976;

Amended Eff. April 1, 2006; October 1, 1993; October 1, 1991.