Showroom Tax

What is Showroom Tax?

 

A privilege license tax on every company engaged in the business of operating a wholesale home furnishings showroom in the city.  

Title 3 - FINANCIAL ADMINISTRATION | Code of Ordinances | High Point, NC | Municode Library 

 

Who is required to pay Showroom Tax?


A company engaged in the business of operating a wholesale home furnishings showroom if the company does either of the following during the tax year:

  • Uses or holds out for use as a wholesale home furnishings showroom, on a permanent or temporary basis, his or her own property.
  • Leases or otherwise provides his or her property to another for use as a wholesale home furnishings showroom on a permanent or temporary basis.


What is the Tax Rate?


The rate of tax is $0.15 per square foot and is based on the floor surface area of the wholesale home furnishings showroom used or held out for use. In the case of ongoing business, the tax is based on the floor surface area used or held out for using during the previous fiscal year to the city. In the case of a new business, the tax is based on the floor surface areas used or held out for use during the tax year. There is a minimum tax of $250.00 per location. 

 

When is Showroom Tax due? 


The showroom tax is an annual tax and is due by August 15th.  

 

What is the billing period? 


Fiscal year, July 1 through June 30.



How can I pay Showroom Tax? 


Showroom taxes can be paid by either of the following methods:

  • Through your banks online banking bill pay. When submitting an online payment through your bank, the invoice number is required. The invoice number is located at the top right of the showroom tax invoice.
  • The City will also accept mailed payments at the address below. 
City of High Point
           Atten: Customer Service - Showroom Tax
           PO Box 230
High Point, NC 27260



Showroom Tax Invoice Sample shows location of invoice number on far right of invoice.


What if Showroom Tax is not paid in a timely manner?


A tax levied under this section becomes a lien on the real property where the wholesale home furnishings showroom is located. The penalties provided in G.S. 105-236 apply to a tax levied under this article.


Frequently Asked Questions:

 

What is this tax used for?


The city will channel the net proceeds to High Point Market Authority for furniture market promotion and assistance.   

Furniture market promotion and visitor assistance include activities and expenditure to promote the High Point Market  through the High Point Market Authority. The term may include advertising and other promotional activities, transportation and parking, housing facilitation, buyer registration, and administration of these activities.

 

Can this tax be prorated?


The tax is not prorated; instead, the full amount of the tax is due when a person begins to operate a showroom for which showroom tax is required at any time during the fiscal year, July 1 – June 30. 

 

How often is the tax billed?


Showroom taxes are billed based on the City's calendar year, July 1 through June 30. Annual tax invoices are sent July (no later than July 15th) and due August 15th.

 

What period does the Showroom Tax cover?


Tax is billed in July and covers the fall market of the current year and the spring market of the following year. 

Example: Property owner is billed in July 2023; this tax covers the upcoming fall 2023 market and the spring 2024 market.

 

Is there a penalty fee for late payment?


Invoices not paid by August 15th are subject to an additional 5% late pay penalty fee. G.S. 105-236

 

Why would a tax lien be placed on a property?


If showroom tax is not paid by August 15th and the city has not been contacted the showroom property is subject to a lien being placed on the real property. 

 

How can a tax lien be removed?


Once full payment has been received; including late fees and a lien processing fee, the lien is processed to be removed.

 

How can I get lien or Showroom Tax information for a specific location?


A public records request can be submitted through our online public records request portal at the following link:  

Public Records Request | High Point, NC (highpointnc.gov)

 For more information regarding the High Point Market please visit the High Point Market Authority link below.

https://www.highpointmarket.org/