North Carolina – Sales Tax Expansion to Take Effect

SALT Report 3777 – Starting March 1, 2016, sales and use tax in North Carolina will be applied to some labor charges. The General Assembly last year approved extending the tax to many services like auto repair, installing modular homes, sign painting, some heating and plumbing work and even installation of tombstones.

The changes were designed to increase sales tax revenue to offset some of the losses expected from cuts the legislature made in personal and corporate income tax rates and rules.

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