NC S870

Provides a grace period through December 31, 2016, for retailers to avoid liability for undercollection of sales and use tax on repair, maintenance, and installation services if they made good-faith compliance efforts following changes in S.L. 2015-241.

Establishes a compromise authority allowing the Secretary to reduce tax assessments for retailers and persons who made good-faith efforts to comply with sales and use tax laws on repair, maintenance, and installation services for assessments issued between March 1, 2016, and January 1, 2023.

Separates "repair and maintenance services" and "installation services" into distinct taxable categories under the general rate (4.75%), and adds new definitions for alteration services, landscaping services, maintenance services, and installation services with specific inclusions and exclusions.

Creates exemptions from installation service tax for new construction, capital improvements, and installations that constitute 10% or less of a non-taxable real property contract; defines capital improvements as additions or alterations occurring more than six months after certificate of occupancy.

Clarifies taxation rules for real property contractors and retailer-contractors, specifying joint and several liability for tax when subcontracting is involved, and requires that tax amounts not be separately stated on consumer invoices.