COLUMBUS, Ohio -- Ohioans will now pay slightly more for vehicles, electronics, clothing and other retail goods.
On Sunday, the state began to collect an extra .25 percent sales tax, raising the tax from 5.5 percent to 5.75 percent. While the increase sounds miniscule, the Ohio Office of Budget Management predicts the state will collect an additional $1.1 billion in sales tax over the next three years.
Much of Ohio will now pay 7.25 percent sales tax, as Guernsey, Noble, Belmont, Muskingum, Monroe, and 43 other counties levy a 1.5 percent county sales tax beyond the state's tax.
Cuyahoga County pays the state's highest rate, at 8 percent.
Groceries and food purchased at carry-out restaurants are still exempt from the tax, as are prescription drugs, housing, newspaper, fuel and utilities.
The sales tax increase coincides with a state income tax decrease. Beginning Sunday, the state income tax will be reduced 8.5 percent. For a person earning $50,000 annually, it will result in a savings of $117 per year.
According to the Governor's office, all the tax changes in the state's budget will amount to a $2.7B tax cut during the next three years.