Effective April 1, 2008, the combined general rate of North Carolina sales and use tax is increased from 6.75% to 7%. The combined general rate (to include county rates) applies to the gross receipts derived from providing telecommunications service, ancillary service, and video programming and to sales of spirituous liquor other than mixed beverages. Legislation provides that for an increase in the authorization for North Carolina local sales and use taxes, the effective date of a rate change for an item taxed at the combined general rate is the date on which local sales and use taxes authorized for every county become effective in the first county or group of counties to levy the authorized taxes. The increased rate applies to sales in all North Carolina counties and is not limited to such sales in only those counties that adopted the additional 0.25% local tax. (Important Notice: Increase in Combined General Rate of Tax, North Carolina Department of Revenue, February 2008)