Amends GS 105-164.3 (Definitions applicable to Article 5, Sales and Use Tax). Amends subdivision (33e) to define real property contract as a contract between a real property contractor and another person to: (1) perform construction, reconstruction, installation, repair, or any other service with respect to real property; (2) furnish tangible personal property to be installed or applied to real property and the labor to install or apply the tangible personal property that becomes part of real property; or (3) provide the labor to install or apply the tangible personal property that becomes part of real property (previously, the term is defined as a contract between a real property contractor and another person to perform construction, reconstruction, or remodeling with respect to a capital improvement to real property). Deletes subdivision (33i), defining repair, maintenance, and installation services. Amends subdivision (35) to provide that the term retailer includes a person (previously, a person other than a real property contractor) engaged in the business of delivering, erecting, installing, or applying tangible personal property or digital property for use in North Carolina that does not become part of real property. Amends subdivision (38b) to remove the provision that a service contract did not include a single repair, maintenance, or installation service, but did include a service contract for a pool, fish tank, or similar aquatic feature and a home warranty. 

Amends GS 105-164.4(a)(13), establishing that the general tax rate applies to the sales price of tangible personal property sold (previously, the sales price of an item or service subject to tax under Article 5) to a real property contractor for use by the real property contractor or to fulfill a real property contract. Eliminates subdivision (16), establishing that the general tax rate applies to the sales price of or the gross receipts derived from repair, maintenance, and installation services.

Repeals GS 105-164.4H(d) (provisions for mixed transaction contract) and (e) (definitions applicable to Article 5).

Repeals the following subdivisions of GS 105-164.13 concerning exemptions from retail sales and use tax: (61a) (repair, maintenance, and installation services provided for an item for which a service contract on the item is exempt from tax under GS 105-164.4I); (61c) (installation charges that are a part of the sales price of tangible personal property purchased by a real property contractor to fulfill a real property contract for an item installed or applied to real property); and (61d) (installation charges that are a part of the sales price of or gross receipts derived from repair, maintenance, and installation services or installation charges only purchased by a real property contractor to fulfill a real property contract).

Makes conforming change to GS 105-164.4I(b), eliminating the tax exemption for the sales price of or the gross receipts derived from a service contract applicable to repair, maintenance, and installation services exempt under GS 105-164.13(61a).

Further amends GS 105-164.4I(b) to eliminate the clarification that the tax exemption for the sales price of or the gross receipts derived from a service contract applicable to an item exempt from tax under Article 5 did not apply to water maintained under a service contract for a pool, fish tank, or similar aquatic feature.

Reinstates GS 105-164.13(49), exempting from sales and use tax installation charges when the charges are separately stated on an invoice or similar billing document given to the purchaser at the time of sale (previously repealed effective March 1, 2016).

Effective July 1, 2017, and applies to sales made on or after that date.