Governor Perdue’s Tax Increases Will Affect Every North Carolinian

News Taxes Will Destroy Jobs, Slow Economic Recovery

Raleigh, N.C. – Tomorrow, the state sales tax will increase by 1 percent from 4.5 percent to 5.5 percent. The combined state and local sales rate will be 7.75 percent in ninety-one counties, 8 percent in Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry Counties, and 8.25 percent in Mecklenburg County.

Also beginning on September 1, state excise taxes will be increased on tobacco products and alcohol. The state excise tax on cigarettes will increase to 2.25 cents per individual cigarette or 45 cent per pack and the state excise tax on “other tobacco products” will increase to 12.8 percent of the cost price of the products. Also, the state excise tax on beer will increase to 61.71 cents per gallon, the excise tax on unfortified wine will increase to 26.34 cents per liter, the excise tax on fortified wine will increase to 29.34 cents per liter, and the excise tax on liquor will increase to 30 percent of taxable sales of liquor sold in ABC stores.

Senate Republican Leader Phil Berger (R-Rockingham) made the following statement:

“Unfortunately for North Carolina, Democrats think the way to solve our economic and fiscal problems is to take more money out of the people’s pockets. During these challenging economic times, the last thing people need is a higher tax bill. The misguided, regressive tax and spend policies of Governor Perdue and legislative Democrats will only serve to destroy jobs, add to our state’s record unemployment rate, and delay economic recovery for North Carolina. What is most disconcerting is that the only thing this new revenue will grow is more government.”

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