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Article: Muzzling the tax bite: seven years ago, North Carolina lawmakers were starved for cash. A slowing economy put the state budget temporarily in the red, leaving a shortfall exceeding $1 billion. Legislators responded by turning the dogs loose on tax scofflaws.(CAPITALGOODS)
- Article from:
- Business North Carolina
- Article date:
- August 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 Business North Carolina. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The dogs seem to be out of control. Small-business owners have come to legislators with horror stories of being billed for uncollected sales taxes based on what they say are changing interpretations of law. Audite of 20 interior-design firms--based on an interpretation that purchase of tangible goods, such as lamps or couches, meant that subsequent design services should be taxed as well--led to assessments between $8,000 and $200,000. Bakeries were told they should have been charging retail customers the 6.75% sales tax for prepared food on loaves of bread that, sold in a grocery store, were taxed at the 2% rate for unprepared food. One Wake County baker was sent a bill ...