Mar 3, 2008 10:19 pm US/Central
Sales Tax Hike May Be A Big Blow For Businesses
Cook County Electronics, Cars Sales Could Take A Hit From Planned Sales Tax Increase
CHICAGO (CBS) ―
Cook County now has a new budget and it means consumers in Chicago will feel a bigger bite every time they make a purchase.
CBS 2's Dana Kozlov reports Chicago will soon have the highest sales tax in the country.
Cook County commissioners approved a 1 percent hike just before their midnight Friday deadline. When it goes into effect it will put Chicago's sales tax rate at 10.25 percent, compared, for example, to New York's 8.375 percent and Los Angeles's 8.25 percent.
It also means Cook will have the highest county sales tax in the state, at 9 percent. Two bordering counties -- Lake and Will -- are at 7 percent.
"I think that is ridiculous," said shopper Natalie Mancini.
"Buying gifts and clothes...we won't do it," said Michigan resident Rajaa Sobh about shopping in Chicago.
"There's so much waste in our county, that they're passing their inefficiency onto the consumers, which I think is really unfortunate," said Northbrook resident Peter Sakas.
It's tough on the wallet. But Cook County businesses could be hit hard, too. Take Abt Electronics in Glenview. It sells mostly big ticket items, making a 1 or 2 percent sales tax difference a potential big deal for customers.
"We're never going to lose a sale over 2 percent, but it is just another thing you have to think about," said Mike Abt, president of Abt Electronics.
"Today I'm buying a washer and dryer, a flat screen TV, a mini-refrigerator and some type of docking system," said Abt customer Peter Silberman.
That's before the tax hike goes into effect. But would Silberman think twice about buying in Cook County in the future?
"If they keep on raising the taxes here, they're just going to force us to go to other places," he said.
Commissioners say the tax increase is set to go into effect in November.
Another potential result of the hike is some business owners believe consumers will buy more stuff online where, in many cases, there is no sales tax.
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