In a joint meeting of the state Senate and House Finance committees yesterday, further discussion of North Carolina’s sales tax was the main focus. Specifically, members were briefed on which services North Carolina currently taxes and those that could potentially taxed if lawmakers decided to broaden the sales tax base.
Were the sales tax to be extended to services, the most likely services to be included are those already taxed by the most number of other states. Experts from Fiscal Research indicated that because so many other states already tax those services, its likely that those services would be the easiest on which to implement the tax from an administrative point of view.
Handouts at the committee meeting included a comprehensive listing of services and how many states currently apply the sales tax to them. The services being taxed by the most states, but not currently by North Carolina, include:
- Natural Gas (for both industrial and residential use)
- Sign construction and installation
- Tire recapping and repairing
- Bowling alleys
- Welding labor (fabrication and repair)
Civitas polled likely voters on this question in October (question 33); 59% were strongly or somewhat opposed while 28% were strongly or somewhat in support.