While taxpayers and CPAs are still grappling with NC’s expansion of sales tax in the past year, the NC Legislature is currently considering legislation that would make changes and further expand the scope of sales tax.
House Bill 1030 – Appropriations Act of 2016 is the battleground for the state’s budget, and nested within the pages of that bill are proposed sales tax changes that could impact many taxpayers. House and Senate leaders continue to press for this short legislative session to end in time for the 4th of July holiday, so this bill could pass as early as tomorrow, July 1, 2016.
While it’s premature to say what the final document will contain, the sales tax provisions in the Senate and House versions of the bill are very similar. Fortunately, the sales tax provisions will not take effect immediately, and, the bill also includes relief provisions for unintentional misapplication of these and other recent sales tax changes. Thus far, January 1, 2017 has been identified as the effective date.
The bill is still being debated, and it’s clear that the NC Department of Revenue will need to provide significant guidance to the application of the final sales tax provisions.
JPS Shareholder Rollin Groseclose stated “We wanted to give you a heads up as we go into the holiday weekend, so stay tuned for more details in the near future. And, as always, if you have any specific concerns or questions, please feel free to contact us at JPS.”
JPS wishes you a safe and happy July 4th.
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At JPS, everything we do is about improving the lives of clients, people, community and profession by providing innovative resources and financial solutions. Our team is dedicated to learning the intricacies of your business, whether you’re a small operation, a nonprofit organization or a large corporation, and, whether your business is in its infancy or already well established. We also invest time and energy in our community, taking pride in doing what we can to make Western North Carolina a better place to live and work. Our Mission is to Be Greater by improving the financial lives of our clients while strengthening our community.