We have heard that one of the top issues with in this legislative session will be the overhaul of the present tax system. One of the proposals is to apply the current 4.75 percent sales tax to services that up until now were exempt. This gets such businesses as pet grooming, landscaping, including lawn care, car washes, carpentry, painting, plumbing and other trades, debt counseling, dating services, taxidermy, newspapers, bowling alleys, barber shops and beauty salons, diaper services, health clubs, shoe repair, internet service providers, books, music and movie downloads from the Internet, and professional services offered by attorneys, accountants, veterinarians and physicians. Lawmakers are considering putting a sales tax on any
service that is taxed in at least one other state. The list of nearly
170 types of services is based on a 2007 survey from the Federation of
Tax Administrators, an industry professional group.The plan is to eliminate the corporate and personal income taxes. Lawmakers feel the additional expense incurring by consumers will be offset by the elimination of the personal income tax.
Watch for more proposals to come forth as the discussions heat up. The governor will unveil his budget today and this may shed some light on the direction tax overhaul will take. Stay tuned and keep abreast of proposals coming out of Raleigh.
