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Upcoming Sales Tax Hike Has Many Searching For Deals
March 28, 2009SAN DIEGO -- News of California's one-percent sales tax increase is helping fuel the local economy.
With the temporary tax hike going into effect next Wednesday, spending on big-ticket items has gone up.
Gary Jones is searching for a deal, and said he only has four more days to save a lot of money.
"Right around $2,000," said Jones.
Jones went to El Cajon to take advantage of the sales tax rate before it increases by one percent on April 1.
Jones was not alone.
"We're posting up about a 20 percent to 30 percent increase in the month of March from February. We're hearing from our customers it's tied directly to the tax increase," said Harold Deem of Toyota of El Cajon.
Deem said he isn't worried about business tapering off after the state tax increase takes effect because there is something else in the pipeline from the state that will begin May 19.
"The DMV fees will double at that time … on everything, new and used," said Deem.
Deem said people know they could save money by buying now and he expects this weekend to be busy.
"We're going to be selling cars like crazy," said Deem.
Jones signed the dotted line, and has already spent some of his $2,000 savings for a sunroof on his new car.
"I got a little bit more; something the wife didn't ask for but I think she'll appreciate it," said Jones.
Jones said he had another motive for saving money.
"I retire in 15 months so a lot of those items I'm ticking off and taking care of before I do retire," said Jones.
The temporary tax hike could expire as soon as 2011.
El Cajon and National City will have the highest sales tax in San Diego County at 9.75 percent, followed by La Mesa at 9.5 percent.
Vista checks in at 9.25 percent, and the city of San Diego will increase its sales tax to 8.75 percent.
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