Retailers prepare for tax increase

The higher sales tax will be in effect through June 30, 2005.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- Retailers and businesses throughout the state are preparing for the sales tax to increase by 1 percent Tuesday, the first boost in more than 20 years.
"It's a real process for a lot of companies; for some, it's nothing," said Lora Miller, governmental affairs director for the Ohio Council of Retail Merchants, which represents about 3,200 establishments statewide.
The increase, making the statewide sales tax 6 percent, is part of the state's new two-year, $48.8 billion budget that takes effect Tuesday.
The boost, which is scheduled to end June 30, 2005, is projected to generate about $2.5 billion for state coffers during the next two years.
Staying informed
Miller said her organization has been keeping its retailers updated through the state budget process.
"We have quite a number of the large retail companies we represent who have their cash registers tied into a computer at a main headquarters, either district or companywide," Miller said. "From main headquarters, they can make changes to any store they need to."
"We do have some major retailers who still have machines that are independent of each other, and each register has to be changed," Miller said.
It shouldn't be difficult for small retailers with perhaps one store and one cash register to prepare to collect the new tax, she said.
Tom Jackson, the president of the Ohio Grocers Association, said he didn't think it would be difficult for grocers to prepare to collect the new tax.
The association has about 800 members statewide.
"It's just a matter of reprogramming our registers to deal with the tax," Jackson said.
"We've been notifying the vendors that they need to start charging the new rate," said John Meekins, a spokesman for the state taxation department.
"That's really what we've been doing, is getting the word out," Meekins said.
According to the taxation department, the state sales tax applies to any item except those specifically exempt by law.
Major current exemptions include carry-out food, prescription drugs, newspapers, magazine subscriptions and local telephone and cable television service.
Some services are already taxed, such as lawn care and landscaping, employment services, private investigations and physical-fitness facility memberships, the taxation department said.
After signing the budget bill Thursday, Taft wouldn't say whether he's concerned about what the state will have to do when the sales tax expires.
Taft said much will depend on the national and state economy.
The last sales-tax increase occurred in November 1981.