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Another year another tax, hmmpf, if you thought the cost of heating and air conditioning was expensive and it is; well now the North Carolina legislature has made it more so. Starting Jan 2nd 2017 there will be services tax or RMI tax (Repair, Maintenance, Installation) of 7.25% and one of those services is HVAC (heating ventilation and air conditioning), this turns every licensed contractor into a tax collector. To be fair we are not the only industry dealing with this headache, auto mechanics, appliance installations and tombstone placement (can’t make this stuff up). Why you ask; well it’s to offset other taxes that have been cut so they are getting it from consumption of services, you and we already pay taxes on the parts and equipment at the POS (point of sale at the parts houses), so what are they taxing then? The labor. The service itself – time. Remember we already pay payroll taxes, workers comp, social security, holidays….. So now we have to collect this tax and send it into the state monthly, we will be assigned a tax number for this protocol, please do not kill the messenger – point your arrows towards Raleigh.

David Drew