North Carolina MTs Must Pay Privilege License Tax Starting July 1, 2018

North Carolina Massage and Bodywork Therapists must start paying a “Privilege License Tax” beginning July 1, 2018. This tax is $50 and is to be paid annually for license for the “privilege of practicing the profession.” Here is a copy of the revised law that specifically includes massage and bodywork therapists (scroll down to 105-41): www.ncleg.net/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_105/Article_2.html

Here is the link to download the application form: https://files.nc.gov/ncdor/documents/files/webfill_version_b202a_application_for_state_privilege_license.pdf

As this is a tax, there may be penalties and fees for non-payment. The North Carolina Board of Massage and Bodywork Therapy and the North Carolina Department of Revenue have not issued any guidance on this tax and its application for massage and bodywork therapists that we are aware of at this time. 

The penalty for not paying the tax timely, without the intent to evade the tax, can be 10%, per 105-46(a)(4) https://www.ncleg.net/gascripts/statutes/statutelookup.pl?statute=105-236

There are steeper penalties and possible misdemeanor charges if the tax is not paid in an attempt to evade the tax. 105-46(a)(9).

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