NC Sales Tax ==> up 1% in Sept; 1.25% Oct

SHINTON

SHINTON

Well-Known Member
Joined
Mar 17, 2005
Location
Triad area of NC
Ok, I know we have folks out there that run your own business and you may not get "notice" from the state in time!!

The new law kicks in on 9/1 and will bump up your state sales tax by 1% for the month of September.

Then on 10/1, your rate will go up again, to 1.25%.


For those of you living in Guilford County where we have 2.25% county sales tax this means:

6.75% on purchases thru 8/31
7.75% on purchases from 9/1 to 9/30
8.00% on purchases from 10/1/09 to 7/1/2011

Update your software - cash registers, etc!!

$1000 purchase

$67.50 in tax thru 8/31
$77.50 in tax during September
$80.00 in tax from 10/1 for the next couple of YEARS!!


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Let's keep this NON-political (you can rant over in the Garage) so this does not get moved.


For those making over $60,000 indiv income, you will pay an extra 2-3% surcharge on your income tax for 2009.

So lets say you pay 6% currently (don't have tax table handy) $60,000 of taxable income x 6% = $3,600 of income tax.

$3600 x 2% = $72 surcharge.

ALSO - NC removing your deductions for real property taxes;

So lets assume in the case above, your $60,000 of Federal taxable income included $2500 deduction for your home/property taxes.

Your NEW taxable NC Income actually goes to $62,500

62,500 x 6% = $3,750
$3,750 x 2% surcharge = $75

So for your $60,000 income in 2008 you would have paid approx $3600 in income tax to NC.

In 2009 you will be paying $3825

$3825 / 3600 = 6.25% TAX increase

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Those are the ones that I figure may effect some of our crew that run businesses on here and I expect the surcharge and property tax deduction being killed will actually effect a LARGE % of our forum.

(This is what I do for a living is why I wrote this up, I work at CPA firm / and do Quickbooks stuff for clients who need help getting it to work right!!)

Sam
 
Sales Tax effect on Joe Consumer from above:

Let's assume he spends half his taxable income on items that are sales taxed? Maybe that is too high but..


$30,000 x 6.75% = $2,025 in Sales Tax
$30,000 x 8.00% = $2,400 in Sales Tax

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$3,825 in Income Tax
$2,500 in Property Tax
$2,400 in Sales Tax
--------
$8,725 to NC and your local county + probably another $8k or so to the Fed.

<FIGHTING SO HARD NOT TO SAY ANYTHING POLITICAL>

sigh...
 
Suckage indeed.

FYI - Sam please correct if I'm wrong - the state surcharge is an estimate for non-NC purchases (e.g. online etc). If you itemize and can prove your non-NC purchases are less, you can do that instead and avoid this %.

(... but yeah right, good luck w/ that....)
 
joy, add in the cost cutting measures by my employer (no cost of living raises, decreased % contributions to increasing healthcare), my bottom line is getting smaller all the time.
 
RatLabGuy said:
Suckage indeed.
FYI - Sam please correct if I'm wrong - the state surcharge is an estimate for non-NC purchases (e.g. online etc). If you itemize and can prove your non-NC purchases are less, you can do that instead and avoid this %.
(... but yeah right, good luck w/ that....)
Click to expand...

My accountant has always told us anything bought out of state we were still supposed to pay a NC sales tax on it for using it in NC.
 
84cucvk-5 said:
My accountant has always told us anything bought out of state we were still supposed to pay a NC sales tax on it for using it in NC.
Click to expand...

Yep that is a USE tax (same exact rates as mentioned above)

I have not heard the usage fee linked to out of state sales - and suspect that is not true due to the fact those are already taxed!? But have not read the specifics yet
 
SHINTON said:
Yep that is a USE tax (same exact rates as mentioned above)
I have not heard the usage fee linked to out of state sales - and suspect that is not true due to the fact those are already taxed!? But have not read the specifics yet
Click to expand...

But they aren't taxed?
E.g. order from Amazon.com. No tax, just shipping (maybe).

For years, when I use Turbo Tax/TaxCut/flavor of the year, it says this.... the "interview" asks if you want to take the standard estimage fee, or declare your own.
I sure as heck don't know what my 'net purchasess are so I take the standard.
 
i think i might move to Nevada. No state taxes, free college educations, LOTS OF PLACES TO WHEEL!!!

lol..i'll start a website www.NV4x4.com
 
Guess it's time to start looking to move South Carolina, only 15 miles away.
 
For now - taxation of services did not go thru.. but they have been chomping hard for that for about 6 years now.

The folks arguing for it are saying we are moving away from mfg based society, and this is a "modernization" of the tax code. Only issue with that is we are BUYING more consumable items than ever (at 8% now) They just want more money.

(Budget was cut very little btw, mostly just raised taxes to cover the difference)

RatLabGuy - Yes if you buy something from Amazon.com YOU are required to fill out a USE tax form for your purchases. Just because most folks don't bother / doesn't mean it is not taxed!! That is why I am confused about this being an either or... I think you are thinking of the fact they added this option to your indv tax return about 3-5 years ago now - most folks still put themselves down for ZERO.
 
SHINTON said:
For now - taxation of services did not go thru.. but they have been chomping hard for that for about 6 years now.

The folks arguing for it are saying we are moving away from mfg based society, and this is a "modernization" of the tax code. Only issue with that is we are BUYING more consumable items than ever (at 8% now) They just want more money.

(Budget was cut very little btw, mostly just raised taxes to cover the difference)

RatLabGuy - Yes if you buy something from Amazon.com YOU are required to fill out a USE tax form for your purchases. Just because most folks don't bother / doesn't mean it is not taxed!! That is why I am confused about this being an either or... I think you are thinking of the fact they added this option to your indv tax return about 3-5 years ago now - most folks still put themselves down for ZERO.
Click to expand...

fawking a right I put ZERO...sign me up for no additional taxes, cuz they're getting it every other place
 
Sam, aren't you subject to the surcharge if your combined gross is over 100k? I thought that's what I heard on the news.
 
SHINTON said:
RatLabGuy - Yes if you buy something from Amazon.com YOU are required to fill out a USE tax form for your purchases. Just because most folks don't bother / doesn't mean it is not taxed!! That is why I am confused about this being an either or... I think you are thinking of the fact they added this option to your indv tax return about 3-5 years ago now - most folks still put themselves down for ZERO.
Click to expand...

I thought that's what thsi surcharge was in reference to...?
 
saf-t scissors said:
Sam, aren't you subject to the surcharge if your combined gross is over 100k? I thought that's what I heard on the news.
Click to expand...

If I recalled correctly, it is $60k for the individual filers and $100k for joint filers.

I thought that the surcharge was for people who owed at the end of the year and not for people that were due money. Am I mistaken?
 
Yes, let's avoid balancing a budget by cutting spending and simply add more confusing, worthless tax increases for the average folk trying to earn and keep their dollar...
 
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