New sales taxes in effect

By Greg Bird
birdman@tmcvoice.com

Pet care services that include grooming and boarding, pet sitting and pet obedience training are a few services that will be charging the six percent tax.

Sunday saw the start of a new six percent sales tax on many goods and services that were exempt before.
During the final days of the 2018 legislative session the new tax bill was passed, along with a 50 cent increase to the state cigarette tax. The new taxes were offset by a change in the state income tax rate to a flat five percent.
The new revenue generated by the taxes is expected to raise about $400 million for the year, half of which will come from the cigarette tax.
On July 1 businesses had to begin charging the six percent tax on services such as labor, which was previously exempt.
Other services impacted by the tax include pet care services that include grooming and boarding, pet sitting and pet obedience training, extended warranty services, event admission fees, tanning booths, janitorial services, landscaping services, laundry and dry cleaning, non-medical diet and weight loss and campsite rentals.
Additionally non-profit organizations will have to collect sales tax on tangible goods they sell. For example, tickets to fundraising events would be taxable.
Legislators say the non-profit tax was never intended to be included and could be addressed in the next session.