North Carolina to Charge Labor Tax - Tire Review Magazine

North Carolina to Charge Labor Tax

North Carolina tire and automotive service companies will start charging tax on labor/service starting March 1.

North Carolina is making an adjustment on how tax revenues are collected, switching more to a “user tax,” and this new tax is one step the state is taking to do so.

The North Carolina Tire Dealers Association fought the implementation of this tax.

The association’s executive director Reece Hester notes that only a few industries are selectively involved with this taxation and is an industry discrimination tax.

“We are already ‘eaten up’ with regulations on business compliance standards” Hester said. “This hits hard the working class folks trying to make ends meet that are depending upon their vehicles for transportation to and from work”.

“Having to quote & charge an additional $20 bucks on top of a $300 labor charge will come as a shock to many customers of our shops, much less the headaches related to software changes, including sales & use tax clarifications to numerous line items of ‘should this be taxed or not’,” he continues. “I just hope to see fairness in all of this as we continue forward to what will most likely become an expanded industry taxation on user fees & taxes.”


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