Tax Reform Fairness?

Date: June 14, 2016

NFIB Small Business Day focuses on expanded sales tax.

Tax Reform Fairness

When NFIB/NC members gathered in Raleigh for
Small Business Day on June 1, one of the major themes of discussion was a key
issue for NFIB/NC this year: the newly expanded sales tax.

The tax, which went into effect on March 1, is
imposed on services—but only a selection of them. Businesses that perform
repair, maintenance, and installation services—essentially, blue-collar
work—now have to collect sales taxes, account for the money, and pass it on to
the state. This adds an additional layer of complexity and administrative
burden, not to mention forces these business owners to pass along an extra cost
to customers. Meanwhile, white-collar services are not affected.

“Tax none or all,” NFIB/NC State Director Gregg
Thompson told the Associated Press. “It’s just not fair to make the smaller
business owner, who has the most difficult time, become a tax collector for the
state and not those who have accounting firms.”

Eight out of 10 NFIB/NC members opposed
expanding the state’s sales tax to business and professional services,
according to a 2015 member survey.

NFIB/NC members in attendance at Small Business
Day also had a chance to hear from the two major-party gubernatorial
candidates. Gov. Pat McCrory and Democratic Attorney General Roy Cooper both
said they’d like to see some changes to the expanded sales tax, but didn’t
provide specifics.

Meanwhile, Senate Bill 870 is proposed
legislation that is meant to help clarify the sales tax, but is only makes
things more confusing. Contact your legislators to let them know how the tax is
impacting your business.

Related Content: News | Economy | North Carolina | Tax Relief | Taxes

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