North Carolina Seeks to Tax Self-Storage

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Senators in North Carolina last week revealed a list of new sources for sales-tax revenue that includes self-storage. The new tax is being proposed to fill a budget shortfall of approximately $6 billion, and senators claim the state’s taxes will be fairer as a result. Other services being considered for taxation are home repair, amusement parks, spa treatments, dog grooming and tattoos.
 
The plan, still under construction, prescribes an overhaul of how the state’s services are financed. The sales-tax rate in most areas would drop from 6.75 percent to 6 percent, but would immediately be tacked on to many previously untaxed services. In addition to the aforementioned services, sales tax would be charged on product warranties, online software and Web databases. The proposal would raise $1.2 billion over the next two years.
 
Services to be left untouched include medical, legal, accounting and tax preparation, because those are services commonly purchased by businesses. Haircuts will remain untaxed, as the bulk of those transactions are paid in cash.
 
The plan would also affect income-tax rates. 
 
Source: Asheville Citizen-Times, Senate targets taxation of services for more revenue

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