RALEIGH, NC (AP) — New sales taxes on car repairs and other services take effect this week as part of Republican efforts to reduce North Carolina’s reliance on income tax in favor of taxes based on consumer transactions.
Starting Tuesday, the sales taxes will be charged on labor for a number of services by retailers ranging from installing cabinets and flooring to repairing jewelry and shoes. Previously, such businesses generally charged tax on parts but not on labor.
Combined state and local taxes will amount to around 7 percent on the transactions, but the rate will vary by county.
Democrats have said the expanded sales tax will hurt families with less disposable income.
Republicans have argued that a broader package passed last year that includes the changes reduces taxes overall for North Carolina residents.
