NC S303

Repeals North Carolina's sales tax on repair, maintenance, and installation services for tangible personal property, digital property, and real property, effective July 1, 2025

Eliminates the sales tax on service contracts (extended warranties, maintenance agreements, home warranties) that cover maintenance, repair, or inspection of property

Removes numerous service-related tax exemptions that become unnecessary with the repeal, including exemptions for motor vehicle service contracts, interior design services, pest control, moving services, and funeral services

Makes conforming changes throughout the tax code to remove references to taxable services, including updates to definitions, sourcing rules, bundled transaction provisions, and refund procedures

Amends the definition of "sale or selling" and other key terms to exclude services, limiting the sales tax base to tangible personal property and digital property