New tax on repairs, maintenance, and installations goes into effect March 1st

Starting March 1st, you’ll notice a new charge when you get your oil changed or have an appliance installed in your home. It’s a new North Carolina state tax on labor and services. We talked to local businesses about how this will affect you and your

Belmont, N.C. — Next time you need new tires or something fixed under the hood, get ready because the taxes on your bill are going up.

We used to just pay taxes on just the parts, not the labor. But, starting March first, the North Carolina state sales tax is expanding to include repair, maintenance, and installation services.

“A lot of people don’t like it because it’s going up. I forgot to add it to the first repair I did today. I’ll have to get used to it,” said Charlie Richards of Richards BP Auto Services in Belmont.

The new tax doesn’t just hit big ticket items, like fixing your car, but also smaller items, like repairing your watch.

“They would see a repair of $225 dollars. Now, we have to add tax to that $225 dollars,” said Christina Moose of Meese Jewelry Company in Belmont.

The combined state and local taxes come out to around 7 percent. It varies by what county you live in.

So, whether you hit the auto shop or the jewelry shop, don’t forget to check for that extra charge courtesy of the state.

The tax hike was approved in last year in North Carolina’s two-year budget. It’s part of the republican effort to lower income taxes and depend more on taxes from consumer transactions.


Originally published at www.fox46charlotte.com on March 3, 2016.