effwhyeye: Philly's Sales Tax Rose to 8% Today

I wrote this for McJawn but I am sharing it with you.

Philadelphia's sales tax officially rose 8% today. This is especially important if you, like me, carry around change in multiples of seven, like exactly a dollar and seven cents when you are going to buy a taco or a McDonald's Sweet Tea. Don't fret too much, though, as this is a temporary increase scheduled to lower back to 7% in 2014. Today marks the end of a 20 day waiting period required by legislation after Governor Rendell signed a fiscal relief bill on September 18th.

Of the eight cents charged on every dollar, six go to the state and now two rather than one will go to the city. The additional pennies are expected to generate $10 million per month for the city for the next five years.

An 8% sales tax is still lower than many other big cities; New York's adds up to 8.875% and Chicago's remains at a whopping 10.25%.

Pennsylvania's sales tax does not apply to groceries, clothing, medicines, text books, lawyers' fees or a few other goods and services, and we can always travel over the state line to buy tax-free goods in Delaware. Not a completely legal move (you're supposed to claim items purchased out of state on your tax return and pay up then), but it can plenty useful for buying sort-of expensive items you barely can afford but need right now. See: furniture, electronics, liquor