College students will fork over a little more money for food on campus in 2014. Starting January 1st, one school exemption for institutions of higher education goes away.
The new sales tax is part of the Tax Simplification and Reduction Act – also known as the Tax Reform package -- passed by the North Carolina General Assembly earlier this year. The law says that prepared food sold to a college student in a dining room, cafeteria, or similar establishment by an institution of higher education – including the University of North Carolina, is now subject to sales tax.
To help students navigate the additional meal cost, UNCW has posted a chart on its website detailing how the tax will be applied. The 7% tax is made up of the 4.75% state sales tax and the required New Hanover County tax of 2.25%.
To view UNCW's notification, follow the link below: