Discounted cigarettes

It didn't take local shoppers long to notice the 1-cent boost in sales taxes that took effect in Onondaga and Oswego counties Wednesday.

"It's appalling," said Rebekah Richer, of Camillus, who bought a DVD at the Target store at Towne Center in Fayetteville. She was shocked when she saw her receipt. "Eight and a quarter: That's quite a jump. And for what?" she asked. "Where is this going?"

The increase boosted the sales tax from 7.25 cents for each $1 sold to 8.25 cents in Onondaga and Oswego counties. The change prompted mixed reactions from business owners and shoppers.

Patricia Mulligan, the owner of the Magic Carpet Shop in the village of Fayetteville, believes the tax hike will hurt her business.

"I just sold a $1,700 rug and there was a big difference between a 7 percent sales tax and 3

an 8 percent sales tax," said Mulligan, whose customer paid an extra $17 for the rug because of the 1-cent rise.

A high sales tax will encourage consumers to shop using the Internet or catalogs, and that will harm local businesses and the overall economy of the state, she said.

"It's going to be very difficult," she said. "I think it's a reason a lot of people will leave the state of New York."

But some local store owners don't think the increase will keep their customers away.

Ed Koolakian, co-owner of Koolakian & Manro Menswear in Hanover Square, said that his customers will not take notice of the additional cost when it comes to purchasing professional wear.

"Our customers are generally used to paying a little bit more for their purchases," Koolakian said.

The 1-cent increase took effect in the middle of a week in which no sales tax is being charged on sales of clothing and shoes under $110.

Like other merchants, Koolakian has to reprogram his store's cash registers whenever sales tax changes occur.

Other local business owners think the poor economy is hindering business, not the state's sales tax.

"It's a drop in the bucket," said Steve Samuels, the executive chef at Ambrosia on South Franklin Street in Armory Square.

"People dine out on their disposable income," Samuels said. "If their income is shrinking, they will not dine out as much."

James Mccandless, who owns Case Lot Closeout on South Salina Street, complained that politicians are misusing revenues and not doing enough to save the taxpayers money.

"We are losing money by them spending money," he said, adding that the increase in prices will affect the customers who come to his store to purchase new and used discounted items.

Meanwhile not all shoppers are fazed by the increased sales tax.

Pamela Sheppard, a 19-year-old Syracuse University student, doesn't think the higher sales tax will stop her from shopping.

She purchased household items at Target Wednesday, even though she knew about the sales tax raise. "It doesn't really change anything that much," she said.

Lee Byrd, who bought tobacco Wednesday at Central Variety Bargain Center downtown, said he stopped buying cigarettes awhile back when the increased sales tax made them too expensive for him to purchase.

"They take out enough taxes already and are not giving enough back," said Byrd, who is currently unemployed. "High tax, but low service."

Onondaga and Oswego counties opted to increase the sales tax this year; Madison and Cayuga counties did not.

The state collects 4.25 cents on each dollar in sales. Counties and local governments get the rest.