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Hurry! Sales tax going up

Don't Waste Your Money

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Call it the stealth tax increase.

Most people we spoke with outside the Home Depot store at Ridge and Highland in Columbia Township had no idea taxes in Ohio are going up in September.

Mike Sundrup said "I was not aware of that, no."

Shane Haley said "I haven't heard a thing."

So here's a crash course:

Governor Kasich and Ohio lawmakers passed sweeping tax changes for 2013. Yes, your representatives in Columbus voted for this.

Income taxes, business taxes, inheritance taxes are down, but in return the sales tax is rising a quarter point (1/4 point) on Sept. 1, statewide.

       -In Hamilton, Clermont, and Warren County it goes from 6.5% to 6.75%.

       -In Butler County, the sales tax rises from 6.25% to 6.5%.

George Campbell is not happy he'll have to pay more. "I don't like it. Things are going to cost a bit more, definitely," he said.

How Much More You Will Pay

    The good news: You'll notice the sales tax hike only on big ticket items, like a new car or kitchen.

    -A new car will cost about $75 more.

    -A refrigerator, about $3 more.

    -A laptop PC: Just more than $1.

    -Anything costing less than $300:  Less than $1

The biggest impact may be on small business owners like Suzanne Kite. She will pay more for supplies and have to bill clients more.
"I'm not crazy about it because it affects our billing, but what can you do about it," she said.

Some heath clubs and hair and nail salons are informing members they will now have to start charging a tax on their services. 

Ohio, however, actually started taxing services like these two year ago. Some appear to be using this change to finally pass those taxes along to their customers.

What You Can Do

The only ways to avoid it are to buy any big ticket items you were planning to purchase (like a car) by Aug. 31.

Small items are not worth worrying about.

You could purchase your appliances or other big items in Kentucky, where sales taxes are about a half point lower.

However, if that purchase is for less than $10,000, you may pay more in gas than you save driving across state lines to make the deal.

As always, don't waste your money.


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Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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