NC service taxes start Tuesday

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WILMINGTON, NC (WWAY) — A new tax in the state budget takes effect next week, and that could mean more and less in your pockets, depending on your job.

The budget includes about $400 million in income tax cuts, but adds new taxes to services you use everyday and they go into effect those Tuesday.

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Those new sales taxes will apply to maintenance, installation and repair services. The amount you pay will be an almost five percent state tax on those services.

According to the NC Department of Revenue, these taxes will be imposed on things like car repairs and even smaller tasks like getting your watch fixed.

Justin Fulford with Al Fulford Heating & Cooling said the changes mean a new way of business.



“Before, we were just charging a flat rate fee and the taxes or anything labor and other materials were already incorporated in that cost,” Fulford said. “Now we’re just going to have to notify them and let them know it’s going to be additional costs.”