North Carolina tax hikes on movie tickets, mobile home sales and more – take effect January 1
Movie tickets, manufactured-home sales and various professional services will increase customer costs starting Wednesday, all part of the tax system changes approved by the North Carolina legislature this past summer.
Service contracts for maintenance and repairs to tangible personal property (cars and home appliances) will come under the sales tax.
In the added admission cost to entertainment events: movies, concerts, guided tours, exhibits are all now hit with the full state and local sales taxes.
The state sales tax rate is 4.75 percent, while New Hanover County charges an additional 2.25 percent for a 7 percent combined total.
The tax on a $15 ticket, for instance, would be a little more than a dollar in New Hanover County.
Brunswick County’s combined rate is 6.75 percent, as is Pender County’s.
Sales of manufactured homes also take on the state’s 4.75 percent tax, replacing the previous 2 percent rate that maxed out at $300 per article (meaning a doublewide mobile home had a $600 max). Once the new rate takes effect, a $40,000 mobile home would sell with a $1,900 state tax.
The increase in sales tax is part of a measure to lower individual and corporate tax rates which supporters claim will create a better business climate and new jobs.
The August tax holiday is also eliminated as part of the new law while several deductions and tax credits were also terminated.
By 2015, the individual, tiered income tax rate–between 6 and 7.75 percent–will have dropped to a flat 5.75 percent. The corporate rate will have fallen from 6.9 percent to 5 percent. Depending on economic growth, the corporate rate could hit as low as 3 percent by 2017.