The number of RVs and cars purchased in Ohio in June was expected to be unusually large as consumers rushed to buy big-ticket items before Ohio’s sales tax increase went into effect on Tuesday (July 1), according to the Columbus Dispatch.
The state sales tax went to 6%, from 5%, which can be a considerable jump when buying a diesel pusher, although budget-minded buyers of entry-level towables would also feel some impact.
Prior to Tuesday, people were looking to beat the increase, said Kathy Morris, a sales manager at Jerry Greer RV in Sunbury, Ohio, a Columbus suburb.
“On a $30,000, $40,000 or $50,000 car, all of sudden you’re talking $300, $400 or $500” in additional tax, said Robert Park, general manager of Haydocy Automotive in Columbus. “It might make or break a deal.”
Officially, Ohio’s sales tax increase is scheduled to expire on July 1, 2005, but the last increase in the state sales tax – in 1981, when it went to 5% from 4% – was intended as a temporary measure. It was made permanent two years later, the newspaper reported.