by Joseph Coletti
Senior Fellow, Fiscal Studies, John Locke Foundation
While North Carolina retailers scramble to understand how to comply with new sales tax collection burdens from multiple states and localities, the state Department of Revenue (NCDOR) joined the sales tax rush with an August 7 directive. The Tax Foundation says North Carolina is one of thirteen states that should pass enabling legislation that sets minimal standards for tax collection and ensures collection standards do not apply retroactively. Instead of waiting for legislation, NCDOR decided it would apply South Dakota’s standards to enforce the “perhaps unconstitutionally broad” statute, which has been on the books in some form since 1987.