New sales tax on auto repairs in NC begins Tuesday

RALEIGH, N.C. (WNCN) – A new sales tax kicks in Tuesday, making car repairs more expensive.

North Carolina has collected sales tax on car parts for years, but not on the labor it costs to install the parts.

Starting March 1, the state will start collecting sales tax on labor, said Trevor Johnson, public information office for the North Carolina Department of Revenue.

Auto repairs are among dozens of services that will start being taxed with some of the millions of dollars raised going to poorer counties.

“Honestly, I think it’s absurd how the legislature keeps imposing taxes on the citizens of North Carolina who work hard every day for their money, but end up paying more for the same services,” said Tyler Ford, a student at North Carolina State University.

Lawmakers approved the legislation last year.

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