Sales tax goes up in Montgomery County today

Credit: Lisa Powell

Credit: Lisa Powell

It’s going to cost a few extra bucks to buy big-ticket item in Montgomery County now, because a new quarter-percent retail sales tax increase kicked in today.

The extra bit figures to add an average of $36 a year, or about a dime more a day, for every man, woman and child in Montgomery County and generate an additional $19.1 million a year to keep certain county programs afloat and expand others.

Montgomery County commissioners approved the increase in June from 1 percent — where it had been since 1989 — to 1.25 percent.

The county’s overall sales tax rate will climb from 7.25 percent to 7.5 percent. The state receives 5.75 percent of the total and the Greater Dayton Regional Transportation Authority collects 0.5 percent.

Where sales taxes will go for every $1,000 spent on taxable items in Montgomery County beginning Oct. 1. 

$57.50 — state of Ohio

$12.50 — Montgomery County

$5 — Greater Dayton Regional Transit Authority

So how much is going to raise prices?

For a pair of $50 jeans, it’s an additional 12 cents and for a gallon of gas it’s less than a penny more.

A $10 car wash will cost another two cents and a manicure will cost an extra dime.

It’s the big-ticket items where shoppers will see a difference.

The tax on a new $1,000 couch will be about $2.50 more.
For some shoppers, the increase will make them think  twice before adding items to their carts.

“It’s not that much, but it makes a difference,” said Quierra Rice of Dayton.

But for others, like Donelle Watson, who lives in Springfield but does most of her shopping in Montgomery County, shopping habits won’t change.

“If I want it bad enough, I’m going to pay for it,” she said.

Studies suggest a sales tax increase may show up as a statistical blip around the time it’s enacted, but isn’t likely to have a lasting effect on shopping habits, said Riley Dugan a University of Dayton assistant professor of marketing.

“There’s usually a few-month lag between when they are announced and when they actually take effect. So some people, what they will do is stock up on perishables like laundry detergent, toilet paper … a month before the change takes effect and we see a slight decrease in spending the month after the sales tax has taken effect,” he said. “Really from a long-term perspective, they don’t have too much of an effect.”

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