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The following is an archived video story. The text content of that video story is available below for reference. The original video has been deleted and is no longer available.

Ohio Sales Tax Increasing Soon

VANDALIA -- Starting next month be prepared to spend more money on sales tax.

"Maybe do it now rather than later," said Cyprian Bergonia who is calculating how much it's going to cost him to take home a new car.

"MSRP is about $23,000," he said.

He's buying now, knowing if he waits a couple more weeks, he'll be paying more in sales tax.

"It does add up," he said. "Everything makes a difference."

This summer Governor John Kasich approved a new two year state budget to decrease the overall amount Ohioans pay on taxes. The plan reduces how much you pay on income tax by 10%. But it increases Ohio sales tax from 5.5% to 5.75% starting September 1st.

Take a Toyota Scion for example. It's a $20,000 car. If you buy it now you're spending about $1,100 on sales tax. If you wait until September it's $1,150. It may only be $50 but in this economy every dollar counts.

$50 might be a big amount if we have to eat it in the amount because there's a lot of new car deals where we make less than $50 on the car," said Bryan Kendall of Joseph Airport Toyota. "On a customer's side $50 is a big amount too. It's a big purchase and every dollar that they can save really does make a difference."

He says they'll  probably sell an extra 10 or 15 cars before September for people wanting to avoid the tax increase.

"Obviously a sales tax increase hurts sales a little bit because it will slow down. But it always increases sales on the short time prior to people wanting to save," said Kendall.

"That's more than a few lunches here and there. I could eat out a lot more if I could save that money," said Bergonia.

The state sales tax rate has been 5.5 percent for about 8 years. This change will not affect what you pay for county tax.

Click here to see what the overall tax will be in your county.

We've also included highlights of the changes to the state budget, what products are exempt from this sales tax increase and how we compare to other states.

Connect with ABC 22/FOX 45 Reporter Wale Aliyu on Facebook and Twitter.

 
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