Sales tax on NC tire tax???

rockcity

rockcity

everyday is a chance to get better
Joined
Apr 10, 2005
Location
Greenville, NC
Ok, so got new tires for the wife’s Yukon today. Looking over the bill and got charged NC sales tax on everything, including the NC tire tax.
Is this correct? I searched but couldn’t really find an answer. Most results are focused around the tire tax or general sales tax. But I haven’t found anything about getting charged sales tax on a tire tax. Doesn’t seem correct.

anyone in the know shed any light? I already have to call and get a refund on some of the tire tax because they charged me double (2% tax rate for tires less than 20” bead diameter, 1% on 20” and larger, we have 22” on the Yukon). So, want to understand the sales tax and tire tax before calling.
 
"Scrap tire disposal tax was put into law January 1, 2020."

Tire tax on your rim size?

racist wonder showzen GIF
 
Are you talking about the tire disposal tax? Sounds like you are.

As far as I know, the sales tax and tire disposal tax are not allowed to be calculated on each other (like most taxes). So the sales tax amount can't include the cost of the tire disposal tax, and vice-versa.


See section B on page 3. Print it out and highlight that part, and tell them the NCDOR says they're full of shit. :D

Clueless? Padding profits? Who knows, but it sounds not-quite-legit.
 
Last edited:
I have no issues with the scrap tire tax. I actually applaud the separation between a 2% and 1% scrap tire tax because my 22” wheels/tires fall into the 1% tax bracket and not the 2%.

what I do have concern with is this N.C. scrap tire tax was included in my subtotal, which was in turn charged sales tax on the subtotal. So, I’m getting charged sales tax on the N.C. scrap tire tax. This doesn’t sound correct. Charging sales tax on a disposal tax is absurd.
 
Fabrik8 said:
Are you talking about the tire disposal tax? Sounds like you are.

As far as I know, the sales tax and tire disposal tax are not allowed to be calculated on each other (like most taxes). So the sales tax amount can't include the cost of the tire disposal tax, and vice-versa.


See section B on page 3. Print it out and highlight that part, and tell them the NCDOR says they're full of shit. :D

Clueless? Padding profits? Who knows, but it sounds not-quite-legit.
Click to expand...

Right. That’s my point. Well, both of my points. 1. I was charged the 2% tire disposal tax even though I had tires that fell into the 1% tax rate. 2. I was charged sales tax on the tire disposal tax.

#2 is my main concern because I can’t find clear guidance as to whether or not the disposal tax can be included when calculating sales tax. It doesn’t pass the sniff test.
 
rockcity said:
Right. That’s my point. Well, both of my points. 1. I was charged the 2% tire disposal tax even though I had tires that fell into the 1% tax rate. 2. I was charged sales tax on the tire disposal tax.

#2 is my main concern because I can’t find clear guidance as to whether or not the disposal tax can be included when calculating sales tax. It doesn’t pass the sniff test.
Click to expand...

The document I linked states that #2 is not allowed.

"The scrap tire disposal tax is to be stated and charged separately on the invoice or similar billing document given to the purchaser at the time of sale except where a retailer displays a statement indicating the sales price includes the scrap tire disposal tax. A retailer must keep records that establish its scrap tire disposal tax liability. The scrap tire disposal tax is not a part of the sales price on which the sales tax is computed, nor should the scrap tire disposal tax be computed on any sales or use tax due."
 
Oh, and when I said “I” was charged, it was actually Bri. I probably would have questioned it at the time because, well, that’s just me and how I do it. :lol: I have even gone back to the dealer that failed the Yukon’s inspection a week prior and challenged it with the entire service department management. Ended up leaving with a passed inspection. No way in hell was I going to let them hold us hostage because I wasn’t paying $1500 for new tires if they still pass inspection.
Ugh. Getting off on a tangent.


anyway, anyone in the know, know for sure or point me easily to the Statutes regarding sales tax and if it can (or can’t) apply to the disposal tax?
 
Fabrik8 said:
The document I linked states that #2 is not allowed.

"The scrap tire disposal tax is to be stated and charged separately on the invoice or similar billing document given to the purchaser at the time of sale except where a retailer displays a statement indicating the sales price includes the scrap tire disposal tax. A retailer must keep records that establish its scrap tire disposal tax liability. The scrap tire disposal tax is not a part of the sales price on which the sales tax is computed, nor should the scrap tire disposal tax be computed on any sales or use tax due."
Click to expand...

Ah, I see it now. I got impatient and didn’t read the entire document.
 
Just be sure to record the whole episode of you going all Karen on them.
 
rockcity said:
Ok, so got new tires for the wife’s Yukon today. Looking over the bill and got charged NC sales tax on everything, including the NC tire tax.
Is this correct? I searched but couldn’t really find an answer. Most results are focused around the tire tax or general sales tax. But I haven’t found anything about getting charged sales tax on a tire tax. Doesn’t seem correct.

anyone in the know shed any light? I already have to call and get a refund on some of the tire tax because they charged me double (2% tax rate for tires less than 20” bead diameter, 1% on 20” and larger, we have 22” on the Yukon). So, want to understand the sales tax and tire tax before calling.
Click to expand...
Did you actually cipher it out yourself, or just going off what the receipt says?

Reason I ask, I have to explain this to people almost weekly, that the core charge on your alternator is not taxed. "YES it is in the sub total, NO it is not taxed with the price of the alternator", at which point I have to actually show them the invoice screen with and with out the core charge to show that although its in the subtotal, it isn't getting taxed as the total only decreases by the actual core charge amount.
 
fordwheelinman said:
Did you actually cipher it out yourself, or just going off what the receipt says?

Reason I ask, I have to explain this to people almost weekly, that the core charge on your alternator is not taxed. "YES it is in the sub total, NO it is not taxed with the price of the alternator", at which point I have to actually show them the invoice screen with and with out the core charge to show that although its in the subtotal, it isn't getting taxed as the total only decreases by the actual core charge amount.
Click to expand...

I added it all up and it looks like it’s taxed. But, I don’t know the tax rate because it’s not on the receipt and every tax rate I’m familiar with comes up to something different than what is shown. So, it’s possible but still suspicious.

And, I’m not sure why untaxed items are included in the subtotal then a line item with the tax rate. It’s odd. Makes things very confusing for folks. Wouldn’t it save everyone a ton of frustration if there was a simple separate line item for non-taxable items to be added to the subtotal?
 
rockcity said:
I added it all up and it looks like it’s taxed. But, I don’t know the tax rate because it’s not on the receipt and every tax rate I’m familiar with comes up to something different than what is shown. So, it’s possible but still suspicious.

And, I’m not sure why untaxed items are included in the subtotal then a line item with the tax rate. It’s odd. Makes things very confusing for folks. Wouldn’t it save everyone a ton of frustration if there was a simple separate line item for non-taxable items to be added to the subtotal?
Click to expand...
It would very much so if it was:

Subtotal (raxable item)
Tax
Core
Total

However for us anyway the core is a line item attached directly to each part:

Alternator. 250
Core. 50

Starter. 187
Core. 35

Antifreeze. 19.99

Oil. 7.99


Subtotal

Tax

Total
 
rockcity said:
I don’t know the tax rate because it’s not on the receipt and every tax rate I’m familiar with comes up to something different than what is shown.
Click to expand...
Did you remove the items from your subtotal that aren't supposed to be taxed, then multiply that by the tax rates you're familiar with?
 
shawn said:
Did you remove the items from your subtotal that aren't supposed to be taxed, then multiply that by the tax rates you're familiar with?
Click to expand...

yep. I tried all kinds of combinations. Nothing adds up.
The closest was taking the full subtotal (including non taxable items) and applying a 6.75% tax rate which resulted in a $.20 difference.
It’s pennies, I understand. I’m now past the point of saving $ overcharged and am now on a mission to understand the process and taxes, because it’s not adding up (pun intended)
 
rockcity said:
yep. I tried all kinds of combinations. Nothing adds up.
The closest was taking the full subtotal (including non taxable items) and applying a 6.75% tax rate which resulted in a $.20 difference.
It’s pennies, I understand. I’m now past the point of saving $ overcharged and am now on a mission to understand the process and taxes, because it’s not adding up (pun intended)
Click to expand...
post the numbers let some of us asshole nerds crunch them and figure out what you are doing wrong..

(I also have a nc county and city sales tax calc built in my billing system)
 
Ron said:
post the numbers let some of us asshole nerds crunch them and figure out what you are doing wrong..

(I also have a nc county and city sales tax calc built in my billing system)
Click to expand...

as soon as I get it back from the better half, I’ll post
 
The best way to find out the right answer is to post the wrong one on the internet. :D
 
Ron said:
post the numbers let some of us asshole nerds crunch them and figure out what you are doing wrong..

(I also have a nc county and city sales tax calc built in my billing system)
Click to expand...
What he really means is "Get ready for this thread to derail into how you overpaid for your tires and where you could have gone instead"
 
RatLabGuy said:
What he really means is "Get ready for this thread to derail into how you overpaid for your tires and where you could have gone instead"
Click to expand...
I figured rob didn’t want to share just so we wouldn’t razz him about buying high dollar tires
 
FD84CFA5-BE67-4033-A7FB-566C55DA57CC.jpeg


so here’s the breakdown. The $29.32 Other Fees is the tire tax, a “tire fee”, and the oil filter disposal fee, to the penny.

everything shown adds up to $1280.08. The tax, as shown, is 6.765202% of the $1280.08. It’s also 6.92379% if I take out the “other fees”.

I’m not sure either of these tax rates are normal/typical. Maybe someone else in the know can tell me? Maybe someone smarter than me? @shawn want a crack at it? :D
 
Last edited:
1st 2 numbers x .07
 
Labor is taxed in nc and has been required to be for at least 2 years.

But some local mini tax isn't. I suspect Rob has a 6.5% and a separate .5% local tax an the local isnt taxing labor...

But I can run through out system tomorrlw
 
Last edited:
Back
Top