DavidW5 (North Carolina)
Posts: 565
Posts: 565
Posted:
For those of you in North Carolina:
How is your association handling the recently enacted rules that impose NC sales tax on associations when they are the final vendor to the consumer? In our case, both our attorney and the NC tax officials have stated that when a ticketed event is held here that includes, for example, food or drink, the association is liable for the sales tax on those items.
This has imposed a substantial new workload on the association in terms of collecting and remitting the tax and all the associated record keeping. It also has forced us to issue sales tax exemption certificates to all of the vendors we obtain these supplies from in order to avoid paying sales tax twice.
We have been told that this was all an unforeseen consequence of the legislative action but it is not clear that any remedy will be enacted in the near term.
We have chosen to add the sales tax to the ticket price paid by the attendees rather than absorb it as a general HOA expense which would be less work but not fair to those HOA members who do not attend these events.
Anyone else dealing with this issue?
How is your association handling the recently enacted rules that impose NC sales tax on associations when they are the final vendor to the consumer? In our case, both our attorney and the NC tax officials have stated that when a ticketed event is held here that includes, for example, food or drink, the association is liable for the sales tax on those items.
This has imposed a substantial new workload on the association in terms of collecting and remitting the tax and all the associated record keeping. It also has forced us to issue sales tax exemption certificates to all of the vendors we obtain these supplies from in order to avoid paying sales tax twice.
We have been told that this was all an unforeseen consequence of the legislative action but it is not clear that any remedy will be enacted in the near term.
We have chosen to add the sales tax to the ticket price paid by the attendees rather than absorb it as a general HOA expense which would be less work but not fair to those HOA members who do not attend these events.
Anyone else dealing with this issue?