Tax on Services in North Carolina
Issue Overview: North Carolina continues to search for new revenues. Discussion has turned to expanding the sales-tax base by eliminating exemptions, including business and professional services.
NFIB Position: NFIB members oppose the tax on services and point out that the imposition of such a tax would raise the costs of services to consumers and result in a reduction of commerce that would also discourage economic development.
Issue Status: NFIB will closely monitor this issue and will work to defeat any measure.
What to Do: If legislation is introduced, contact your lawmakers and ask that they not support any legislation that expands the sales tax to include business and professional services. Find your legislators at http://www.ncleg.net.
What to Say: Tell lawmakers the new tax collection process would increase paperwork and recordkeeping, a burden on small businesses. Small-business owners currently receive no remuneration for collecting sales taxes on consumer goods for the state, and the additional burden would stifle free enterprise. Tell them more consumers will travel across our state line to obtain services in states that are tax free.
