Consumers will likely adapt to July 1 sales tax increase

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Effective July 1, the state sales tax rate will increase from 5.3 percent to 6.3 percent. 新加坡六合彩开奖网 consumer behavior expert Dotty Harpool explains why most consumers won't notice the sales tax increase.

Harpool: "Sales tax is an added extra when you buy a product 鈥 that most people will look at the price of the product and that's really what they think they're going to be charged. Sales tax is not usually something a lot of people are going to consider for most consumer purchases.

"And I wonder if a lot of people are not even going to notice the sales tax increase since it's such a small monetary amount, one cent, that many people, that's just not going to hit their radar as something significant, that in most cases consumers don't look at the sales tax. They look at the price."

Kansas already has a higher sales tax than most of its neighboring states, leading some to voice fears that people might shop elsewhere. Harpool says the sales tax increase could impact consumers thinking about buying a car, televisions, electronic equipment and other high-end products.

Harpool: "Probably where an increase in sales tax would affect consumer buying would be for high involvement or expensive or long-term commitment types of products. That's when the numbers are really going to get larger and the dollar figure is going to go up significantly, when you have a percent increase."

Harpool says most businesses aren't thrilled with the sales tax increase.

Harpool: "With businesses and the environment that we're in right now, I think consumers are a little weary of business practice in any negative change in what businesses are doing. And even though businesses don't have control over the sales tax, consumers are going to treat them like they are, so I think businesses would probably prefer not to have this increase, but most understand that this is best for the state."

And anytime it costs more to purchase things, people are going to be upset.

Harpool: "Anytime you increase the amount that a customer owes on a purchase, they're not going to be happy, be it a price increase or a sales tax increase. That means less money that they have to buy other things."

Nevertheless, Harpool says consumers are getting a little more knowledgeable about deficits.

Harpool: "I think in today's economic environment, consumers are a lot more educated on deficits in state and federal deficits. And though it's very painful, maybe this time around, consumers will be a little bit more open to this and a little bit more understanding of why this was done."

Voters in Arizona recently approved a temporary one-cent sales tax increase and, while some local merchants voiced concern that the increase would discourage spending, many shoppers seemed unfazed by the change.

One person said, "I don't think people will say, 'This costs one dollar and I was going to buy it, but now that it's an extra cent I won't.'"

A Tucson businessman said he personally supported the sales tax hike in Arizona even though it wouldn't help car sales. He said, "Sometimes you have to put the public good in front of your own personal good. It's better to think what's best for the majority."

But not everyone is brushing off the higher tax. As one Arizona resident said, "We're already in a recession. You add a little here and a little over there and it accumulates."

Thanks for listening. Until next time, this is Joe Kleinsasser for 新加坡六合彩开奖网.