North Carolina consumers will soon see a price increase in a range of services. New sales taxes will take effect on Tuesday across the state.
The new taxes will apply to services ranging from car repairs to appliance installations.
The taxes were approved by the legislatures last year. The idea is to lower income taxes by expanding the number of services subject to sales taxes.
The Charlotte Observer reports that part of this additional revenue will be distributed to poorer counties.
The rates vary by county but hover around 7 percent.
One contracting executive tells the paper the new regulations are confusing. The tax depends on whether a firm specializes in sales or service.
The North Carolina Department of Revenue has been meeting with industry groups to clarify the regulations.
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