The Norman Transcript

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Discussion

March 22, 2009

New county sales tax kicks in April 1

Local merchants don't expect much impact on business

By Peggy Laizure

Local merchants don't seem too concerned about the one-fourth cent sales tax increase that goes into effect April 1.

The quarter-cent sales tax passed is December 2008 to fund the new county detention center will go into effect April 1. State law requires changes to sales tax go into effect at the beginning of a quarter.

The one-quarter of one cent tax is the first time Cleveland County has had a sales tax, and it will be added to city sales tax and the 4.5 percent state sales tax. The only counties in Oklahoma not to have a sales tax are Oklahoma and Hughes counties.

Once the new detention center at 24th Avenue NW and Franklin Road is completed and operational, the tax will stop.

Although it was voted a 20 year tax, county commissioners think it will only be in effect 12 to 15 years.

The tax rates for Cleveland County will be Norman, 8.25 percent; Moore, 8.25 percent; Noble, 8.75 percent; Lexington, 8.25 percent; and Slaughterville, 4.77 percent.

A Norman car dealer who asked not to be named said there are so many outside factors affecting car sales that the one-fourth cent tax wouldn't make much difference to his business.

Other reasons some retailers aren't concerned are necessities and chains.

"People have to get groceries," said an assistant manager at Wright's IGA. "It's not a luxury item. They may cut back on certain things that are not necessities but I don't think it will affect our sales."

"It probably won't affect us," said Dillard's Norman store manager, Carol Haun. "Penn Square is higher and a lot of our customers that shop here shop there. I don't think they are looking at the tax. It affects big ticket items, but if it's something they really want, they will get it without thinking about the tax.

"The tax in Oklahoma City is 8.3 and most of the cities around there are as high or higher," she said.

Bob Thompson, owner of Midway Grocery, said he doesn't have a lot of competition around his neighborhood business so he doesn't "think that's going to affect my business."

And some retailers don't think their customers will notice the difference.

"I think lots of people didn't know it (the tax rate) changed the last time," Roberta Leeper with Roberta's Cosmetics said. "The majority of people don't have any idea what the sales tax is."

Leeper also said she wouldn't know if the tax commissioner didn't keep her informed.

The bottom line is, "we do need the jail and that's how it goes," said the car dealer.

Peggy Laizure 366-3544 plaizure@normantranscript.com

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