NC Democratic Senate Leader: ‘Crippling’ Sales Taxes Go into Effect on Tuesday

Published Friday, February 26, 2016 at 3:55 pm

Release from Office of NC Senate Democratic Leader Dan Blue:

Sales taxes crafted by the Republican-led General Assembly are set to go into effect Tuesday, March 1.

The plan raises the price on repairs for personal property and motor vehicles – from oil changes and general car repairs to home improvements and computer services – by adding sales tax to labor costs associated with these services.

Governor Pat McCrory signed off on the retail tax increases last fall, while also approving income tax cuts that will cost the state an estimated $1 billion in 2016, according to a report from the NC Budget and Tax Center. The income tax cuts result in savings for higher income families, while low income families will see an increase in their tax bills.

“The additional sales taxes are nothing more than a veiled lower-to-middle income tax increase,” said Senator Dan Blue (D-Wake). “Car and home repairs are stressful and much more costly to lower income families that pay a higher percentage of their income towards these expenses.

“The move to support the state’s budget with consumption taxes over income taxes is a lose/lose situation for low and middle income families in North Carolina,” Blue added. “We cannot continue to balance the budget on the backs of hard working families.”

The 2015-16 budget also calls for a 30 percent increase in driver’s license and vehicle registration fees, due to go into effect in October.

See PDF listing changes here: March 1 Taxes.

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