Sales tax increase means consumers should act fast

by Sarah Rice (srice@wsbt.com)

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Sales tax in Indiana will go up to 7 percent beginning April 1, 2008

Sales tax in Indiana will go up to 7 percent beginning April 1, 2008. (WSBT photo)

By WSBT News1

SOUTH BEND — If you shop in Indiana, you'll soon be forking over more money for just about everything, except food.

The new property tax relief plan includes a 1 percent hike in the sales tax. It will go to 7 percent.

So if you're in the market for big ticket items, you better act now.

With three kids, Stephanie Mead is no stranger to spending money.

"Every time the season hits you have to buy new clothes because they grow," she said. "I spend an average of $50 a month on clothes." That doesn't even include clothes for Mom and Dad.

According to the U.S. Department of Labor, the average family spends $1,874 a year on clothes. With the 1 percent increase, families will be spending $18.75 more. Some consumers say these increases won't have much of a impact on their budget.

"But when we get ready to do a big purchase like a car or anything of that magnitude it really is going to hurt," said consumer Susan Pearson.

At car dealerships like Gurley Leep GMC, the average price for a new car is $40,000.

After the increase people will pay $400 more in sales tax. That's why dealers are offering a special sale.

"It can provide a substantial savings to people if they do act before the end of the month, especially on the new vehicles with some of the prices on them," said Gurley Leep GMC General Manager Tom Tenhove.

At the beginning of April Gurley Leep anticipates consumers may hesitate to buy.

"It definitely is going to impact and have us trying to hold off," said Pearson.

The sales tax increase takes effect April 1.

Saturday, Mar 29 at 2:07 AM annon wrote ...

this is peanuts. just wait until they go through with the great idea of a county manager. instead of electing a sheriff and an auditor and a clerk, ect you will get to vote for one person called a "county manager" to be in charge of all those jobs.talk about our voice being taken away. government is so corrupt.

Saturday, Mar 22 at 7:37 AM Just call me 'A Doubting Leep' man wrote ...

40k average for a new car? I defy you to show the fact sheet that supports THAT statement! Not evryone in this market is as easy going or as unenlightened as these dealerships would have people believe. If he had been reasonable I probably wouldn't have fussed about 30k but more important than the facts of the story was the opportunity to 'Plant the seed' in customers minds that they should expect to pay close to that, if not that much. Go check out the G/L buys Medows for some real eye openers

Saturday, Mar 22 at 12:25 AM Lucky lucky Me! wrote ...

Oh boy! No property tax relief for St. Joe County AND 1% increase in state sales tax. Somebody pinch me, I must be living a dream!

Thursday, Mar 20 at 10:30 PM Anonymous wrote ...

The average new car is $40,000? And in that recent study they think the primary reason the average age of cars on the road is 10 years,is because they're made better. Yeah, right. I'm lucky if I make $40,000 in two years, how many decades would it take for me to pay that car off? I'd really like to live in the world these people do. Good thing I went to college!

Thursday, Mar 20 at 9:19 PM Ed wrote ...

Act fast? Not; I'll just buy online at no tax places, at least until 2010 when I can save a little on my property tax. This whole thing helped the wealthiest the most; big surprise. The Dip stick politicians just cost Indiana a lot of sales and once again stuck it to the middle class (or what is left of it anyhow).

Thursday, Mar 20 at 8:40 PM John wrote ...

Just like indiana... raise the sales tax NOW but, property taxes in 2010. Mitch why did you sign this bill?

Thursday, Mar 20 at 8:28 PM Troy wrote ...

How many years until the property taxes will creep back up? Not only will your property taxes go up, but now you will be paying 7% sales tax. Government never goes without less money. Daniels calls himself a Republican?

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