Legal Question in Tax Law in North Carolina
New free distribution paper tax law in NC effective 10/99
We need to know if there are any constitutional rights or laws governing taxing (just) free distributed news papers in the state and not all others. The new law goes into effect on Oct. 1,1999.
We heard about the new 4% state tax through the grapevine. The state has not informed us of the tax and today is Sept. 27, 1999. But the local government has heard about it in advance and added there own 2% tax to coincide.
We cannot afford this tax. We do not make money from the distribution of our paper. What can we do or where do I need to go to find information pertaining to this law?
2 Answers from Attorneys
Re: New free distribution paper tax law in NC effective 10/99
I'm just shooting from the hip here, but it seems
like their could be a strong 1st ammendment concern
with a tax on a "free" paper. Obviously, the tax isn't
on the price of the paper, right?, so it's on the
revenues you take in?
We have them here (real estate ads, mostly) and I've never
checked to see if they are taxed. Want me to do so?
Can't you just telephone your state's department of revenue
and ask them if there's a tax?
Call some of the other free papers in your area and ask them
what they know about the tax and what they pay.
Maybe an NC lawyer will reply, too.
Re: New free distribution paper tax law in NC effective 10/99
Call the St. Dept. of Revenue and Taxation! Call your congressman! Call the ACLU! I think you've got a good case against the tax. Good luck!!