Senate Bill 861: Repeal Service Tax

• Repeals the service tax on service contracts and removes related tax provisions that were previously imposed on repair, maintenance, and installation services for tangible personal property and digital property.

• Eliminates G.S. 105-164.4I (service contract tax provisions) and removes service contract facilitator requirements from G.S. 105-164.4J marketplace-facilitated sales rules.

• Repeals multiple service tax exemptions including exemptions for motor vehicle service contracts, interior design services, and certain service-related items that are no longer taxed.

• Makes conforming changes to real property contractor provisions, property management contract rules, refund procedures, direct pay permits, and various tax definitions to reflect the elimination of service taxation.

• Becomes effective October 1, 2024, and applies to services provided on or after that date.