Tax on labor kicks in Tuesday for NC residents

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Get ready to pay more taxes. Starting Tuesday, March 1, you'll have to pay tax on some labor. Everything from floor installation to car repairs will cost you between 6.75 percent to 7.5 percent in sales tax, depending on which county you are in.

Republicans who pushed for the tax increase say it's part of an effort to shift the tax burden away from income taxes. Democrats believe the additional tax will place more burden on the middle-class who have to pay for additional repairs rather than buy new products like automobiles.

Mechanics say taxing labor will increase many repair bills. For example, a $200 labor bill will be taxed an additional $15.

Most businesses in the repair and installation service industry, who also sell products, are affected.

The labor tax will be added to services like; clothing and shoe repair, plumbing, painters, floor installation and car wash detailing. Several services are not being taxed include; pet care, lawn maintenance, nail technicians and hair stylist.

The labor tax is expected to generate $84.8 million in revenue for the state.

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