State sales tax increase goes into effect
You’re now going to find yourself spending a little more when you go shopping. The state sales tax increased by one percent today and is now 7.75 percent in most counties.
Governor Perdue hopes to raise more than $ 800 million to help close North Carolina’s budget gap.
Many consumers said they don’t mind. “It’s getting football season now and I’m ready to get one of these beautiful color TV’s and the one percent definitely won’t make any difference,” said Larry Stukes.
Mike Riley from Soundtronics says the tax hike will tack on an additional 10 to 15 dollars on an average TV there. “The ones that were thinking about making a purchase, especially a higher dollar purchase like the TV’s and the surround sound systems, went ahead and decided to go ahead and make the purchase to save the money on the taxes,” he said.
Some consumers say if the state needs to tax more, sales tax is the way to do it.
“It’s a lot better alternative than perhaps an increase in the income tax and road tolls. From my standpoint, I don’t think the extra one percent is going to make any difference, I know it could affect other people,” said Dan Bruno.
At Soundtronics, bookkeepers are working through the kinks and expecting the increase to cause the bigger problem for their home installers.
While Democrats say this is needed to tackle the state’s budget gap, some Republicans say it will only further delay economic recovery.
The tax increase does not apply to food.
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