2025-03998NoticeWallet

Feds Demand Endless NC Sales Tax Receipts from Ship Builders

Published Date: 3/13/2025

Notice

Summary

Contractors working on construction or vessel repairs in North Carolina need to keep proving how much they spent and paid in sales tax. The government is asking to keep this paperwork rule going to help get tax refunds for building materials. If you’re involved, get ready to keep those certified statements coming, and don’t miss the April 14, 2025 comment deadline!

Analyzed Economic Effects

4 provisions identified: 1 benefits, 3 costs, 0 mixed.

Government uses certifications to claim tax refunds

The Government will use the certified statements from contractors and subcontractors as evidence to establish exemption from State and local taxes and to substantiate refund claims for sales and use taxes indirectly paid on building materials, supplies, fixtures, and equipment in North Carolina. Counties and incorporated cities and towns may obtain such refunds each year from the North Carolina Commissioner of Revenue.

Contractors must certify NC sales taxes

If you are a contractor performing construction or vessel repair in North Carolina, the Federal Acquisition Regulation clause 52.229-2 requires you to provide certified statements showing the cost of property purchased from each vendor and the amount of North Carolina sales or use tax paid. This information collection applies to contractors working on projects in North Carolina and is being extended for continued use.

Subcontractors must provide certified statements

Subcontractors working on North Carolina construction or vessel repair projects must provide certified statements of costs and sales or use taxes to the general contractor, and the general contractor must furnish those statements to the Government. This requirement is part of compliance with FAR clause 52.229-2.

Paperwork burden quantified for NC tax certification

The notice reports an annual respondent count of 182, with 182 total annual responses and a total annual burden of 227.5 hours for the North Carolina Sales Tax Certification information collection (OMB Control No. 9000-0059). These figures describe the paperwork time burden the Government estimates for complying with FAR clause 52.229-2.

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Key Dates

Published Date
3/13/2025

Department and Agencies

Department
Independent Agency
Agency
Defense Department
General Services Administration
National Aeronautics and Space Administration
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