Effective July 31, 2007, the extension of North Carolina’s temporary 0.25% increase in the state sales and use tax (which was scheduled to expire on August 1, 2007), has been permanently extended. Furthermore, effective October 1, 2008, the general state sales and use tax rate will be increased from the 4.25% rate to 4.5%. Effective October 1, 2009, the state sales and use tax rate will once again be increased from the 4.5% rate to 4.75%. The rate hikes are due to North Carolina’s assumption of certain Medicaid responsibilities. (Ch. 323 (H.B. 1473), Laws 2007)