Ohio's sales tax is going up, beginning Sunday.

Ohio's sales tax is going up, beginning Sunday.

The tax is increasing by one-quarter percent. The state tax rate will rise from 5.5 percent to 5.75 percent, an increase of 25 cents for every $100 spent on purchases of vehicles, electronics, clothing and other retail goods.

It will be the first increase in the state sales tax in a decade.

The change was included in the state's new two-year, $62 billion operating budget. The budget also included tax cuts for businesses and individuals, including a 10 percent cut in the Ohio personal income tax.

Hancock County collects its own 1 percent sales tax. The combined state and local sales tax rate will be 6.75 percent starting Sunday.

The new sales tax rate in surrounding counties will be: Allen, 6.75 percent; Putnam, 7.25 percent; Hardin, 7.25 percent; Henry, 7.25 percent; Sandusky, 7.25 percent; Seneca, 7.25 percent; Wood, 6.75 percent; and Wyandot, 7.25 percent.

Thirty-five percent of an average Ohio family's spending is subject to the sales tax, according to the Ohio Department of Taxation. In Ohio, food, housing, medicine and education are not subject to the sales tax.

Even with the increase, Ohio's rate is still lower than about half the U.S. states, the tax department said.

Ohio first enacted a sales tax in 1935. The rate then was 3 percent. The rate rose to 4 percent in 1967 and to 5 percent in 1981, according to the tax department.

In 2003, state lawmakers temporarily tacked a penny onto the tax -- raising the rate to 6 percent for the next two years. In 2005, it was dropped to 5.5 percent.