GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 177

Short Title:  No Sales Tax on 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 REPEAL THE SALES TAX ON LAUNDRY AND DRY CLEANING SERVICES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.4(a)(4) is repealed.
Sec. 2.  G.S. 105-164.13(18) reads as rewritten:
"(18)	Funeral expenses, including coffins and caskets, not to exceed one thousand five hundred dollars ($1,500).  All other funeral expenses, including gross receipts for services rendered, are taxable at the general rate of tax set in G.S. 105-164.4. However, 'services rendered' do not include laundry services, dry cleaning services, or services performed by a cosmetologist, a manicurist, or a barber who is employed by or at the specific direction of the family or personal representative of the deceased; and 'funeral expenses' and 'services rendered' do not include death certificates procured by or at the specific direction of the family or personal representative of the deceased.  Where coffins, caskets, or vaults are purchased direct and a separate charge is paid for services, this subdivision applies to the total for both."
Sec. 3.  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).
	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 (3) 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.
	For the purpose of this Article, the situs of a transaction is the location of the retailer's place of business."
Sec. 4.  Section 4 of Chapter 1096 of the 1967 Session Laws, as amended, is amended as follows:
(1)	By inserting the word "and" before the subdivision designation "(3)".
(2)	By deleting the semicolon and the word "and" at the end of subdivision (3) and substituting a period.
(3)	By deleting subdivision (4), which begins with the words "the gross receipts derived from services".
Sec. 5.  This act becomes effective July 1, 1993.