Effective July 1, 2011, the North Carolina portion of the state sales and use tax rates are scheduled to decrease from 5.75% to 4.75%. The total rate for Mecklenburg County (including county and transit sales tax) is currently 7.25% and would decrease to 6.25%. Most other counties in North Carolina are currently at 6.75% and would decrease to 5.75%. Mark your calendars if you are collecting sales tax from your customers, but watch for proposed legislation that would affect this decrease in rates. We will keep you posted as we are updated on changes.
Donna Bordeaux is a Certified Public Accountant and Personal Financial Specialist with Bordeaux & Bordeaux, CPAs, PA in Lake Wylie, SC (a suburb of Charlotte, NC). For further information about Donna or her firm, please visit her website at Charlotte CPA or by phone at 704.752.9845.
This upcoming weekend (Friday, August 6th through Sunday, August 8th) will be the annual “back-to-school” sales tax holiday for both North Carolina and South Carolina.
North Carolina Sales Tax Holiday
Qualified items generally include clothing, footwear or school supplies that are individually priced at $100 or less, some instructional materials priced at $300 or less, sports equipment that is priced at $50 or less, computers prices at $3,500 or less, and some computer equipment priced at $250. It does not apply to clothing accessories, jewelry, cosmetics, protective equipment, furniture or any item purchased for use in a business. It also does not apply to computer equipment, such as monitors, unless they are purchased in a bundle with a computer system. For a detailed list of items that are exempt during the North Carolina Sales Tax Holiday, click here (opens as .pdf). For a list of frequently asked questions about the NC Sales Tax Holiday, click here (opens as .pdf).
South Carolina Sales Tax Holiday
Qualified items include certain clothing, footwear, school supplies, computers and computer software., bath wash clothes, blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillow cases. It does not apply to items such as jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing. It also does not apply to any items for use in a business. A detailed list of items can be found here, on the South Carolina Department of Revenue’s website (opens as .pdf), For a more detail questions and answers on the South Carolina Sales Tax Holiday, go here (opens as .pdf).
Chad is a Charlotte CPA
who works with small business owners and invidiuals on a monthly basis to provide them with proactive guidance and advice on how to grow their business, minimize their tax liabilities and grow their bottom line. You can find our more about Chad by visiting his profile here: Chad Bordeaux
