Nc Tax Question

Business By kristanashley Updated 13 Jan 2011 , 8:16pm by acookieobsession

kristanashley Posted 30 Oct 2010 , 2:27pm
post #1 of 4

I'm a brand new business and I just got my tax packet in the mail 2 weeks ago, and I'm trying to figure it out. All we have to charge is the 2% food rate, correct? I know that we're exempt from the general state rate, but the wording on the county rates and transit rates is confusing. All it says is, "Items subject to the general state rate are subject to the county/transit rate." So does that mean that we are not subject to it because we are not subject to the general state rate?

Also, it says that the tax is due on the last day of the quarter. Does that mean the check can be written and mailed on the last day, or it has to be in their hands on the last day, before you get penalized?

3 replies
keystone Posted 13 Jan 2011 , 10:56am
post #2 of 4

I was told that the tax rate is NOT the 2% rate if I am selling from my home. The check must be postmarked by that date.

kristanashley Posted 13 Jan 2011 , 1:41pm
post #3 of 4
Quote:
Originally Posted by keystone

I was told that the tax rate is NOT the 2% rate if I am selling from my home. The check must be postmarked by that date.



May I ask what you were told regarding tax, and who told you? The tax office told me 2%... it is confusing though... and it has waffled in the past... but to my knowledge, as long as you make at least 80% of the what you are selling, and you don't offer utensils, then you charge 2%...
http://modern-baking.com/news/headlines/0923_bakers_sales_tax/

acookieobsession Posted 13 Jan 2011 , 8:16pm
post #4 of 4

I don't want to tell you the wrong thing because it is very confusing...but I sold from my home (closed last year) and I paid 2% in wake county and the hihgher rate for rentals and delivery. What you should really do is call the NC Tax people and have them walk throught the first return with you or a fake return. Pretend you have 2-3 orders for a month with several things you expect to have food, delivery charge, rentals, etc and then have them walk you through a tax form. They were very helpful to me when i called and had them walk me through it. i think they would rather hold your hand the first tiime than have to help you figure out a mess later on. icon_smile.gif

Good luck...

Julia

Check out my E bay auctions: sjstoner21, going out of business sales....

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