NFIB Calls for Time Out on Sales Tax Expansion

Date: April 05, 2016 Last Edit: April 07, 2016

‘This thing is a mess,’ says Gregg Thompson, state director.

NFIB Calls for Time Out on Sales Tax Expansion

North Carolina’s service tax has been in effect for just over a month, beginning March 1, but it has already created widespread confusion, especially among small businesses.

The expanded sales tax—which was included at the back of a 429-page budget bill and passed quietly just 12 days before the General Assembly’s adjournment in late 2015—applies to North Carolina businesses that perform repair, maintenance and installation services. So for home improvement projects, car repairs, and delivery and installation of Home Depot appliances, businesses must collect a sales tax on the transaction.

Gregg Thompson, NFIB’s North Carolina state director, says the tax was a bad idea and was poorly communicated. He is calling for state lawmakers to revisit the issue in the upcoming legislative session, which will begin on Monday, April 25.

“The Legislature needs to call a time out on this ill-conceived tax until it can clarify who’s affected and by how much,” he says.

How has the expanded sales tax impacted your business? Reach out to share your story, and keep an eye out for action alerts. This will be a key issue for NFIB this year.

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