DealersEdge Professional Forums

The State of NC in their infinite wisdom has decided to start effective March 1, 2016:

"The imposition of sales and use tax to the sales price of or the gross receipts derived from
“repair, maintenance, and installation services” for a motor vehicle or tangible personal property."

In other words, taxing LABOR as well as parts. This will now also include service contract labor/parts which were previously exempt as the contract was taxed at sale.

Does your state do this as well?

California does not tax labor. Hopefully, this does not give our state representatives any ideas...

~ gt feels over-taxed as it is already...

Nebraska, We tax labor on accessory labor but not repair labor.

Wow, I had not heard about this. (I'm in NC). This state is really something else. Maybe they'll give teachers a raise with this money.
Looking at the law, I spotted this "specific exemption":

"A transmission, an engine, rear-end gears, and any other item purchased by a professional motorsports racing team or related member of a team for which the team may receive a sales tax refund under N.C. Gen. Stat. § 105-164.14A(a)(5). This exemption expires January 1, 2020."

Yep, NC for sure.

OHIO: We tax it all, except certain food. If it isn't a sales tax, it is embedded.

everything is taxed here; except freight and cores. Supplies not for resale are taxed and paid by the dealer. NJ here.

New Jersey yes, they would tax the air you breath if they could figure out how.

In Ohio we tax the core price and you don't get it back when it is returned.

Barry wrote:In Ohio we tax the core price and you don't get it back when it is returned.

Same here in Michigan

FixedManager wrote:New Jersey yes, they would tax the air you breath if they could figure out how.

Same here.
I hope my previous post didn't sound like whining. I realize a lot of people pay tax on labor already. What burns me is the fact they quietly enact these new taxes under the radar. Then they brag we are getting a tax cut next year. Never mind that these new sales taxes will more than offset that cut.