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SB 877 North Carolina Senate · 2025-2026 Session

Repeal Service Tax.

This bill proposes to eliminate the service tax in North Carolina, which currently applies to various repair, maintenance, and installation fees. By repealing this tax, the legislation directly affects businesses that provide these services and the consumers who pay for them. The bill also includes specific changes to how taxes are calculated for bundled transactions and services related to real property, such as home renovations. These adjustments aim to clarify tax rules for contractors and ensure that services are taxed consistently with other sales.
Issues: ✓ Budget & TaxesSupports Budget & TaxesRepealing a service tax reduces the tax burden on businesses and consumers, providing direct tax relief and lowering costs for essential services like home repairs.90% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Apr 2026
Committee Review
Floor Vote
Governor
Introduced Apr 28, 2026 Last action Apr 29, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Filed → Edition 1 · 2 edits
MINOR
The bill's header and tracking information were updated to reflect the current session year and a new bill identifier. Additionally, a critical text correction was made to clarify that taxpayers must be able to prove (substantiate) that a transaction is subject to tax under specific categories, rather than the previous text which cut off mid-sentence.
Scope change
The bill's scope remains focused on repealing the service tax, but the text correction clarifies the rules for determining which transactions are taxable.
TECHNICAL

Updated the bill header to change the session year from 2025 to 2026 and updated the bill identifier from DRS45491-MCf-295 to S877-v-1.

REQUIREMENT

Corrected a sentence regarding tax liability to explicitly state that a person may substantiate that a transaction is subject to tax as a real property contract or a mixed transaction, fixing a previous truncation error.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
3
Key actions
0
Committee
1
Apr 29, 2026
Committee
Ref To Com On Rules and Operations of the Senate
upper
Apr 28, 2026
Introduced
Filed
upper
0 primary · 1 co-sponsor

Sponsors

No sponsor information available.