More Taxes and Higher Prices in North Carolina
Although lawmakers try to put a positive spin on the new sales tax, both business owners and customers dislike the change. The tax puts an extra 4.75% tax on services such as auto repair and other maintenance jobs. This is forcing owners to raise prices and therefore making customers pay more for the same service. The tax is unevenly applied to North Carolinians and is already causing trouble.
Pridgen, owner of Pridgen Tire and Auto Center, said the sales tax amounts to a double tax on small business owners who already pay income taxes on what they earn from working on cars.
Personally, I think people are taxed to death anyway, and I don’t understand why (legislators) jumped on the auto industry,” Pridgen said. “For the consumers, it’s like penalizing them and getting every dime out of you for owning a vehicle. It’s crazy and I just believe it’s unfair for the consumer. While it effects everyone that owns a vehicle, if you’ve got an older car that is in need of a lot of repairs, it’s going to hit you a lot harder than a newer car that doesn’t need a lot of repairs.”
“I think they’re trying to make up for the loss of revenue,” he said. “But it’s just more work on our behalf and more of a headache because of more paper work on our end. All we’re doing is being a tax collector and collecting tax on everyone going through the door and turning it around and mailing it the state.”