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Local businesses worried about how an increase in sales tax will impact them

Local businesses worried about how an increase in sales tax will impact them.

Springfield is facing a nearly $11.5 million structural deficit heading into the next fiscal year.

In order to help relieve some of the deficit, a 0.25 percent increase in sales tax has been proposed.

"He has talked about different ones in the past, the mayor has even brought up different ones in the past," Director of Budget Management Bill McCarty said. "But he genuinely feels that this is the lowest impact on individual citizens and therefore that's why he's recommending it."

However, the increase worries some local Springfield businesses.

"Right now we need all the help we can get and this is not going to be any help. It's going to raise everything," Owner of Iris and Ivy Betty Salisbury said.

With the proposed increase being 0.25 percent, the city said the impact on one's wallet will be minimized.

"You're basically talking about 25 cents or a quarter on a $100 purchase. Very, very small impact on the individual," McCarty said.

For some businesses in Springfield, they see it as something more than they can handle.

When asked if she believed an increase in the sales tax would then decrease the number of shoppers that came to stores, she replied 'absolutely.'

She said that she is now wondering just how high it will go.

"Well, God only wants 10 percent. You know we're going to have to stop here pretty soon because we are getting close to God," Salisbury said.

The city sees the increase as something that will provide benefits that will help the city financially.

"In going out to the ward meetings that he does once a year. He heard from residents that they don't mind a little extra revenue or paying a little extra in taxes as long as it maintains the level of services that they have become accustomed to," McCarty said.

McCarty also mentioned that this proposed sales tax increase will currently not have an impact on grocery prices.

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