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1909-F E Fire Tower Road Greenville, NC

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So you may be wondering why we are writing a post about sales tax? There is a significant change coming that will impact our labor charges.

As of March 1st, 2016 all labor charges will be subject to sales and use tax. Based on N.C. Gen. Stat. § 105-164.3(34a) a person in “retail trade” is a retailer and must treat RMI transactions with consumers as retail sales. RMI stands for Repair, Maintenance and Installation which describes every aspect of what we do.

Our sales and use tax rate in Pitt County is 7%. This means that all services and products will now be subject to tax.

We want to be very clear – we are not increasing our prices, the State of North Carolina is.

If you are not familiar with how sales and use tax works, let us explain. The business collects the sales tax at point of sale. The business then has to pay the sales tax it has collected to the government. There is no compensation for collecting these funds and in fact cost the business time and money to do so. We have already had to file tax for any product we sell but now it will include all services.

Our advice? If you plan to have any major repair done soon go ahead and bring it in and save 7%.

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