Aug 1, 2009 7:54 am US/Eastern
Bye-Bye Bargains: NYC Sales Tax Increases Saturday
Rate To Reach Nearly 9 Percent; New Yorkers Split On Issue, Flock To Stores For Last-Minute Shopping Deals
By ROSS PALOMBO, CBS 2 HD News
NEW YORK (CBS) ―
With back-to-school shopping right around the corner, it's the last thing New Yorkers need: starting Saturday, New York City sales tax increases by half a percent.
"Sales have been picking up for us," said Nelly Ly of Filene's Basement. "They're definitely looking for a bargain."
Even at Filene's Basement, the bargain prices may never get lower.
"You better shop now," shopper Fay Ramirez said.
That's because shoppers know that starting Saturday part of the deals will be gone.
"It's six o'clock – I'll shop until six-thirty to beat the increase," shopper Ann Miller said.
At midnight, the tax increases half a percent to 8.875 percent, the first permanent raise in more than 35 years.
"So maybe I should get as much as I can tonight," shopper Arlene Leckrha said.
So what does this mean for you?
Well, if you buy an item that costs $100, the entire tax increase you're going to see is 50 cents. If you buy a more expensive item, like a $200 suit, the entire tax increase you'll see is just $1.
"I don't think it will affect them too badly," Ly said.
But in this economic downturn, many shoppers disagree.
"Taxes are going up, but our incomes are not," Ramirez said.
"Nine percent adds up," Miller added.
The city hopes it will add up to $950 million a year in much-needed revenue, but shoppers may not buy into it.
"They're going to spend less, and the stores will be emptier," Miller said.
And even those who are avoiding it, by buying Friday night, still know they will have to pay later.
"You gonna shop for the rest of the year? You might miss it tonight, but you'll still get it tomorrow," Leckrha said.
Those making $125,000 in income could pay as much as $356 more each year in taxes.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
World's Most Useless Facts
Click to enlarge
Looming Storm Likely To Bury NYC, Suburbs 39 mins ago 
Stumble It!
Comments