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Economy and Business


Sales tax increase could affect major purchase decisions
Some stores making customers aware of bump from 5.5 percent to 5.75
by WKSU's KABIR BHATIA


Reporter
Kabir Bhatia
 
In The Region:
Ohio's sales tax inches up this weekend, but that doesn't necessarily mean a run on big purchases before the deadline.State sales tax goes from 5.5 percent to 5.75 on Sunday. That works out to an extra $50 on a $20,000 purchase.
Jess Joseph of Don Joseph Toyota in Kent says customer traffic has not spiked in recent days, but the dealership has spent the past few weeks preparing for the increase.
Jess Joseph on the coming sales tax increase

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“We’ve sent out a mass e-mail to our customer base, just making them aware. And we also let people know when they come in that the quarter-percent is coming next month. Cause sometimes people like to take some time to make a big purchase like a car sale, so we just want to educate them as much as possible.”

Joseph adds that while previous sales tax increases might have increased foot traffic, her dealership is sending e-blasts to inform customers for the first time.
State Tax Commissioner Joe Testa says the increase is more than offset by the simultaneous income tax drop of 8.5 percent, which also takes effect September 1.
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