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North Carolina Rate Increase 1% on 9/1 & another .25% on 10/1

Posted by salestax on August 10, 2009

The current state sales and use tax rate in North Carolina is 4.5%. Senate Bill 202 increases the North Carolina state sales and use tax rate in the following manner:

Sales made on or after September 1, 2009 and before October 1, 2009 are subject to a 5.50% rate, plus applicable Local Taxes. (This is the newly enacted additional 1%)

Sales made on or after October 1, 2009 and before July 1, 2011 are subject to a 5.75% rate, plus applicable Local Taxes.  (This .25% was enacted previously, but will still be applicable, even with the added 1% starting in Sept.)

See here for details: http://www.dornc.com/taxes/sales/rate_increase2009.html and here: http://www.dornc.com/aboutus/education/lawchanges2009.html

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3 Responses to “North Carolina Rate Increase 1% on 9/1 & another .25% on 10/1”

  1. Kay Lefebvre said

    What about a leased vehicle? I leased the vehicle in February 2008 and was paying 339.14 a month with tax and now I am paying $345.72 with tax. Shouldn’t a leased agreement made in 2008 stay the same?

    • salestax said

      You should still have the same rate of tax on your lease if you were delivered the car prior to the increase. See this notice: http://www.dornc.com/taxes/sales/impnotice0809_2.pdf

      It might be a good idea to take this to the dealer or send it to the finance company billing your lease.

      Although, I must say that this is a little surprising. OFten a state will require the increase of the amount of a lease, if the rate increases during the payment period. And, just take note, that the dealer is not responsible (technically) for overbilling you – see this page… the Session Law explained in paragraph 4. You might have to go to the state and ask for a refund of the extra tax being billed to you. http://www.dornc.com/taxes/sales/rate_increase2009.html

      I’d like to know how you make out with this. If you’d be so kind as to report back after you contact the dealer (and/or the state) I will (and I’m sure all of my readers) greatly appreciate it.

      Have a great day!

  2. Superb website…

    […]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[…]……

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