In order to fill gaps in the state’s budget, the 2009 General Assembly has enacted a temporary increase in the sales and use tax in North Carolina.

The new tax rate will be applicable to telecommunications, ancillary, video programming, and spirituous liquor services.

Beginning on Sept. 1, merchants will begin collecting an additional one percent rate increase. The new tax increase will not expire until July 1, 2011. With the combined state and county tax rates, Ashe Countians will be facing a combined tax rate of 7.75 percent.

The new tax rate increase, known as Senate Bill 202, was ratified by the House of Representatives and the Senate on Aug. 5. It has since been signed by Gov. Bev Perdue.

In a prepared statement, Rep. Cullie Tarleton explained that the increased tax rate is a necessity in order to avoid additional cutbacks in key institutions such as in education.

“None of us liked the idea of raising taxes during such tough economic times but our backs are against the wall,” Tarleton said. “Further cuts would have meant teacher layoffs in K-12, our community colleges and our universities including ASU.

“For every dollar raised in new taxes, we cut $2.”

The budget passed for this fiscal year cut state spending by $2.4 billion. It was the largest cut in the state’s history. A $990 million revenue package was also passed to prevent “more drastic cuts” in education and in health and human services. This package includes a one cent increase in the sales tax, Tarleton said.

Some counties in the state will see tax rates as high as 8.25 percent such as in the case of Mecklenburg County and an 8 percent combined rate in Alexander County. Ninety-one other North Carolina counties will see an increased rate to 7.75 percent.

For more information on the increased tax rate, please visit the Department of Revenue’s Website at www.dor.state.nc.us/taxes/sales/rate_increase2009.html.