Indiana increases sales tax

A penny on the dollar.\nThat’s what students and faculty are paying extra after Tuesday’s sales tax increase from 6 to 7 percent.\nThe increase will have a minimal impact on students, who don’t have to pay the tax for food on campus.\nJunior Jessie Muehr said most students don’t see the effects of the tax anyway, especially those who still live on campus.\n“It affects those living off-campus a lot more because they’re paying for everything with the sales tax,” Muehr said.\nSenior Kelli Archer said the increase won’t have much impact on how students spend their money.\n“Pennies add up,” she said. “But it’s not going to stop them.”\nAlso affected are local business owners who have to change their cash registers to account for the tax increase.\nAndy Walter, owner of Tracks music store, said that for the most part, small-business owners will not see much change.\n“If you’re staring at a new car, that’s what, $200?” Walter said.\nJunior John Jaskowiak was not in favor of the increase.\n“It just decreases the incentive to spend money,” Jaskowiak said.\nFor the most part, Walter said businesses that sell “small-ticket items” won’t see much difference.\nThe General Assembly approved raising the sales tax to help offset the 30 percent average decrease in property taxes across the state.\nGov. Mitch Daniels signed the bill into law March 19 after it received wide bipartisan support.\nThe bill decreased revenue from property taxes by $870 million, and the 1 percent rise in the sales tax is expected to gross around $900 million, according to government reports.\nThe increase puts Indiana in the top six states for highest sales tax with California, Mississippi, Rhode Island, New Jersey and Tennessee.