GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 176

Short Title:  Sales Tax On All Cleaning Services.	(Public)
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Sponsors: Representative Mavretic.
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Referred to:  Finance.
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February 17, 1993

A BILL TO BE ENTITLED
AN ACT TO EXPAND THE SALES TAX ON LAUNDRY AND DRY CLEANING SERVICES TO INCLUDE ALL CLEANING SERVICES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.4(a)(4) reads as rewritten:
"(4)	A person who is engaged in any of the following businesses is considered a retailer under this Article:
a.	Cleaning tangible personal property.
b.	Cleaning part or all of a house, a building, or another improvement to real property.
		A tax at the general rate of tax is levied on the gross receipts derived by these retailers from services rendered in engaging in any of the businesses named in this subdivision.  The tax imposed by this subdivision does not apply to gross receipts derived from services performed for resale by a retailer who pays the tax on the total gross receipts derived from the services."
Sec. 2.  G.S. 105-467 reads as rewritten:
"§ 105-467.  Scope of sales tax.
The sales tax which may be imposed under this Article is limited to a tax at the rate of one percent (1%) of the following:
(1)	The sales price of those articles of tangible personal property now subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(1) and (a)(4b).
(2)	The gross receipts derived from the lease or rental of tangible personal property when the lease or rental of the property is subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(2).
(3)	The gross receipts derived from the rental of any room or lodging furnished by any hotel, motel, inn, tourist camp or other similar accommodations subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(3).
(4) 	The gross receipts derived from services rendered in engaging in a business subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(4).
The sales tax authorized by this Article does not apply to sales that are taxable by the State under G.S. 105-164.4 but are not specifically included in subdivisions (1) through (4) of this section.
The State exemptions and exclusions contained in G.S. 105-164.13 and the State refund provisions contained in G.S. 105-164.14 apply to the local sales and use tax authorized to be levied and imposed under this Article.  A taxing county may not allow an exemption, exclusion, or refund that is not allowed under the State sales and use tax.
	The local sales tax authorized to be imposed and levied under this Article applies to retail sales, leases, rentals, the rendering of services, the furnishing of rooms, lodgings, or accommodations, and other taxable transactions made, furnished, or rendered by retailers whose place of business is located within the taxing county.  For the purpose of this Article, the situs of a transaction is the location of the retailer's place of business."
Sec. 3.  Section 4 of Chapter 1096 of the 1967 Session Laws, as amended, is amended by rewriting subdivision (4) of that section to read:
"(4)	the gross receipts derived from services rendered in engaging in a business subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(4)."
Sec. 4.  This act becomes effective July 1, 1993.