N.C. auto service sales now being taxed

RALEIGH, N.C. (March 4, 2016) — Auto repair facilities in North Carolina were forced to charge sales taxes on auto service, maintenance and repairs starting March 1, thanks to a provision in the state's 2015-2016 budget.

The North Carolina budget, which was passed Sept. 18, lowers personal income and corporate taxes while increasing sales tax revenue, according to local news reports.

However, the new taxes are not universal but are levied selectively on a few industries, according to Reece Hester,executive director of the North Carolina Tire Dealers Association (NCTDA).

Mr. Hester accused the state government of discriminating against the auto and tire service industries.

“This hits hard the working-class folks trying to make ends meet that are depending on their vehicles for transportation to and from work,” he told Tire Business. “Having to quote and charge an additional 20 bucks on top of a $300 labor charge will come as a shock to many customers of our shops.”

Telephones at NCTDA headquarters have “run off the hook” since the new tax was announced, according to Mr. Hester. He predicted the tax will be a particularly hot topic at the NCTDA Expo, scheduled for Raleigh March 4-5.