NCPMA Legislative Update
During the 2017 legislative session, despite widespread industry opposition, legislation was
passed that redefined "pest control services" for the purposes of tax exemption eligibility. As a result of this language change, "pest control services" now only applies to the application of pesticides to real property in regards to taxable services. This statutory change goes into effect January 1, 2018 and will have significant effects on the pest management industry in North Carolina. The newly written definition of "pest
control services" leaves a wide range of pest management services subject to taxation. The new language is contrary to statutory language that has been in place for over six decades and is still referenced by the Department of Agriculture. Furthermore, this change would ultimately create an impediment to protecting public health and property and be detrimental to the North Carolina economy.
The Pest Management Association has voiced concerns over the new definition and proposed new language to legislative leaders to consider enacting during the January 2017 special session. The change would amend the existing statute to rewrite the definition of "pest control service" as "the gross proceeds of the sale or sales of any company providing pest control services as defined in N.C.G.S. 107-65.24 (23)." This technical correction would refer back to the definition of "pest control services" that the industry has operated under for over sixty years.
The Pest Management Association will be in constant contact with its membership leading up to the January session in an effort to influence legislative members to support our position. Furthermore, the Pest Management Association has been assured by members in both the Senate and the House that the definition of "pest control services" was an oversight and are agreeable to finding a solution and working with our Association.
Any services conducted by a company can be outside of these definitions such as moisture work, insulation services, etc. Consult your tax advisor for more information or to determine tax exemptions or "capital improvement" exemptions.