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TAX NEWS - SEPTEMber 2009

North Carolina tax rates: North Carolina Department of Revenue Announced New Sales and Use Tax Rates for 2009 and 2010

1) State general tax rate temporary increase, effective 2009 September 1

The general State tax rate in North Carolina is increased from 4.5% to 5.5%. The 5.5% tax rate will expire on 2011 July 1. Combined State and local sales and use tax rate is now:
- 7.75% in most counties of North Carolina,
- 8% in Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry Counties, and
- 8.25% in Mecklenburg County.
 

2) State and local tax rates change, effective 2009 October 1

General State tax rate in North Carolina increases from 5.5% to 5.75%. The local county tax rate will be:
- 2% in most counties,
- 2.25% in Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry
- Mecklenburg county to have an extra 0.5% Public Transportation tax rate.

The combined State and local tax rate will be the same as above:
- 7.75% in most counties
- 8% in Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry Counties, and
- 8.25% in Mecklenburg County.
 

3) Zero tax for electricity sold to farmers and manufacturers, effective 2010 July 1

Tax rate on electricity when sold to a farmer to be used for farming purposes, or to a manufacturer to be used on operating of industries or manufacturing plants is now cut down to zero. The previous tax rate was 0.8%.
 

4) Privilege tax on fuel will have a  zero tax rate, effective 2010 July 1

For manufacturing industry or manufacturing plants obtaining fuel (exept piped natural gas and electricity), the tax rate is cut down from 0.3% to zero.


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