Planning a Labor Day shopping spree? Sales taxes will be higher as of Sunday.

Planning a Labor Day shopping spree? Sales taxes will be higher as of Sunday.

Statewide, the sales tax is increasing .25 percent, and with total state and local taxes, Henry County will stand at 7.25 percent. Surrounding local counties are similar, including: Fulton, 7.25 percent; Putnam, 7.25 percent; Wood, 6.75 percent and Lucas, 7 percent.

Ohio lawmakers approved the increase as part of the state’s $62 billion, two-year state operating budget. The increase is part of a larger tax adjustment package that will reduce overall business and individual taxes by approximately $2.7 billion over the next three years. The legislation was signed into law June 30 by Gov. John Kasich.

Items such as automobiles, electronics, clothing and other retail goods will see the increase. Necessities such as groceries, housing, utilities, education, newspapers and medicines and many other purchases are exempt from this tax.

The last increase to the state sales tax was in 2005, which brought the rate to 5.5, according to the Ohio Department of Taxation, though 2005 was actually a decrease from 2003, when the sales tax was at its highest, 6 percent.

Henry County Chamber of Commerce Executive Director Joel Miller said he doesn’t see it impacting local businesses much since it is a statewide increase and not just a local issue.

“The main area I look at when sales tax is discussed on a state level is the difference between the states we closely border up here in (northwest) Ohio - even with the increase in sales tax - Ohio is still lower than Michigan and Indiana,” Miller said. “That keeps us competitive and prevents customers from looking to make large purchases over the borders.”

With a .25 percent increase, the Internal Revenue Service estimates a family of four with an income of $55,000 will spend an extra $748 a year. A $500 television will cost an additional $1.25 or a $30,000 car an extra $75.

Snyder Buick Cadillac GMC finance and insurance manager Austin Sears doesn’t think the increase will impact business.

“If it was 2 percent or something like that - a quarter percent is 75 bucks for $30,000,” Sears said, adding the amount individuals are spending on a vehicle will not be a drastic change.

“I don’t think our business is going to change,” he added.

However, Sears noted a few customers did push to finalize their car purchase before the increase.

E-mail comments to allison@northwestsignal.net .