NC Service Tax Expansion Is 'a Mess,' and Lawmakers Need to Fix It

Date: March 10, 2016 Last Edit: March 15, 2016

STATEMENT: Service tax expansion is ‘a mess,’ and lawmakers need to fix it
Gregg Thompson, state director of the National Federation of Independent Business, says legislation expanding the sales tax to include additional services was a bad idea and is creating problems for a host of small businesses.
The changes took effect March 1. Thompson said small business wants lawmakers to revisit the issue in this year’s legislative session, which convenes on Monday, April 25.
“This thing is a mess,” Thompson said. “This sales-tax expansion was poorly thought out and poorly communicated. It’s done nothing but create confusion, especially in the small-business community.
“NFIB has always been opposed to balancing the budget on the backs of small business,” Thompson said. “Our members believe you should look for ways to cut spending and reduce waste before you even start thinking of raising taxes.
“If you do end up raising taxes, you should do it evenly and fairly,” Thompson said. “You shouldn’t tax shoe shiners unless you also tax the trial attorneys whose shoes they shine. 
“The legislature needs to call a time out on this ill-conceived tax until it can clarify who’s affected and by how much.”
NFIB/North Carolina is the state’s leading small-business association. To learn more, visit or follow @NFIB_NC on Twitter.

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