North Carolina Sales and Use Tax for Landlords - New Rules

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House Bill 1050 (S.L. 2014-3), signed into law May 29, 2014 by Governor McCrory, provides that the gross receipts derived from the rental of a private residence, cottage, or similar accommodation listed with a real estate broker or agent where a person occupies or has the right to occupy such on or after June 1, 2014 is subject to the 4.75% general State and applicable local and transit rates of sales and use tax and any local occupancy tax imposed by a city or county. N.C. Gen. Stat § 105-164.4(a)(3) provides that the “rentals are taxed in accordance with new G.S. 105-164.4F.” 

I may rethink B&H here in North Carolina.  In the county I would operate in, there will be a 7.5% tax on the rent. Do I build that into the rent? So $1000 a month would have me tack on an additional $75 to cover the tax. I feel this is adding another level of taxation that penalizes landlords... State Income Tax, Franchise Tax, Property Tax, and now Sales Tax. I may keep my investments in Texas... Thoughts??

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Ok, spoke with my CPA, the exception to the new tax is if the rental agreement is for longer than 90 days. She said the new tax is nicknamed the "race weekend" tax to put a tax on the folks coming in for the races here in Charlotte... LOL!

All is good since I don't do short term or month to month leases!