My Car's in the Shop

Cross posted from my blog.

My 2003 Honda Civic Hybrid is in the shop today for the annual safety/emissions inspection and routine oil change and servicing.

Like many North Carolinians, I will pay a bit more for these services as the labor for the service is now subject to state and local sales taxes, thanks to the General Assembly.

Also, my tax information is at the accountant this week, hopefully to get my income tax returns filed soon. When the General Assembly added services to things subject to the sales tax, they were very selective. My mechanic's labor, or the labor for the appliance repair technician, or the chimney sweep, will now have sales tax added. But when I pay the bill to my accountant, guess what! No sales tax.

There will be no sales tax on legal fees, or accountant fees, or brokerage fees. There will be no sales tax on greens fees at the country club or membership fees at the health club. But if you get tires installed and balanced, or have a watch repaired, or have cable or satellite TV installed, you now have to pay sales tax on that labor.

You have to give the General Assembly credit for coming up with creative ways to shift the tax burden off the wealthy and onto working class North Carolinians.