Some elected officials sign
pledges not to raise taxes, and then vote to add new taxes, increase fees and
expand the list of items taxed. Then
they have the nerve to say they have kept their pledge.
Sales and use taxes are way too complicated !
Almost daily for the past several
months, I have been receiving updates from the NC Department of Revenue
regarding sales and use tax law changes and “interpretations”. By the time you
read this there will likely be more.
Many tax law changes are taking
effect next month. You might miss several before you vote. Coincidence?
Many new services are set to be
taxed this year with a hit and miss tactic!
Auto repair labor will be taxed,
except those vehicles under warranty or service agreement.
This is a very unfair tax to
small auto repair businesses and to the family that can’t afford a new car
Movie tickets, kitchen
remodeling, and appliance installation will be taxed.
Bowling, advertising and golf
green fees will not be taxed.
There are even some taxes based
on sales, but are not called sales taxes.
The highway use tax is based on the
sales price, but is at a different rate and stops or is “capped” at different
NC doesn’t give a “tax discount”
if you spend $500 for school clothes, but does discount taxes for expensive
A person buying an expensive car can
pay the same tax as someone purchasing a very basic vehicle.
The “”Before School Annual Sales
Tax Holiday” was also abolished! That’s an increase also. Should the taxpayers
of North Carolina Get at least a weekend off?
NC has over time, changed the
distribution of the sales tax revenue, and even added “adjustment factors”.
NC businesses lose sales to
states with lower sales taxes and have to file extremely complex sales tax
NC businesses get paid nothing to
collect the taxes, fill out the paper work and forward the taxes to the State
Solution: We need to either tax sales and services or not tax. If we tax, then
set one rate for everything, except maybe food for example. In any case, by taxing
fairly and by leaving out special interests, etc., the tax rate would be reduced.
Also NC must make timely and transparent payments to the counties and simplify a
fair distribution of sales tax revenue.