Sales Tax Illusions

*      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 every year.

 

*      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 values.

 

*      NC doesn’t give a “tax discount” if you spend $500 for school clothes, but does discount taxes for expensive cars.

 

*      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 forms.

 

*      NC businesses get paid nothing to collect the taxes, fill out the paper work and forward the taxes to the State of NC.

 

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.