North Carolina – Sales tax on labor remains confusing to companies, consumers by Richard Carver -April 2, 2016

“It’s been about a month since the state began collecting sales tax on labor for many installation, maintenance and repair services.

Adding the 6.75 percent sales tax to labor was approved by the General Assembly in September as part of the 2015-16 budget. Republican legislative leaders said the expansion was designed to help offset $400 million in lost revenue from personal income tax cuts, some of which won’t go into effect until 2017.

Even though there was a six-month lag time between passage and introduction, the labor sales tax has left some consumers with sticker shock and companies still confused on what services are taxable.”

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