Proposed NC tax bill GOUGES middle class w/ more and higher sales/consumption taxes
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Effective Oct. 1, the bill would:
eliminate the sales tax exemption for installation services
expand the sales tax base to include repair and maintenance services
expand sales tax to include pet care services and veterinary services.
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The measure also changes how sales taxes are distributed in the state. Under current law, 75 percent of the sales tax goes to the county and city where the purchase is made, while 25 percent is distributed across the state based on population. Over the next four years, that formula would change so that, effective July 1, 2019, 20 percent would go to the county where a purchase is made, while 80 percent of sales taxes collected across North Carolina would be distributed based on population.
This measure has been pushed by Sen. Harry Brown, R-Onslow, as a way to help smaller counties with smaller property tax bases. The current law, he points out, favors large counties such as Wake County that have large shopping areas.
However, Brown insisted this was less a rural-urban issue than some have made it out to be.
A book that accompanied the tax bill shows there are roughly 10 counties across the state that would lose money under the plan, including Wake County. However, 97 counties, including Wake, would be able to raise their sales taxes by way of a referendum, which would more than offset any losses under the bill.
http://www.wral.com/senate-bill-lowers-taxes-redefines-job-luring-programs/14703816/
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