08/31/09 — New N.C. tax hikes in effect Tuesday

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New N.C. tax hikes in effect Tuesday

By Staff Reports
Published in News on August 31, 2009 1:46 PM

Going shopping will get a little more expensive Tuesday, as an additional 1 percent state sales and use tax increase goes into effect.

The increase, which is meant to be temporary, will raise the combined state and county sales tax rate to 7.75 percent. The combined general rate of tax, which applies to telecommunications service, ancillary service, video programming and spirituous liquor other than mixed beverages, will increase to 8 percent.

The increase is planned to expire on July 1, 2011.

The General Assembly levied the sales tax increase as part of a nearly $1 billion revenue package to help close a budget gap of approximately $4.5 billion.

Other changes effective Tuesday include:

* An increase in the excise tax rate on alcohol to a total of 61.71 cents per gallon on beer, 26.34 cents per liter on unfortified wine, 29.34 cents per liter on fortified wine and 30 percent on spirituous liquor in ABC stores

* An increase to 45 cents per pack of cigarettes, up 10 cents

* An increase to a total of 12.8 percent on other tobacco products, up 2.8 percent.

The General Assembly also added a surtax on the income taxes:

* Married filing jointly/surviving spouse, between $100,000 and $250,000 -- 2 percent

* Married filing jointly/surviving spouse, more than $250,000 -- 3 percent

* Head of household, between $80,000 and $200,000 -- 2 percent

* Head of household, more than $200,000 -- 3 percent

* Single, between $60,000 and $150,000 -- 2 percent

* Single, more than $150,000 -- 3 percent

* Married filing separately, between $50,000 and $125,000 -- 2 percent

* Married filing separately, more than $125,000 -- 3 percent.