One cent sales tax increase goes into effect

MOBILE, Ala. (WALA) - Thursday, November 1 is the day the new sales tax increase goes in effect on many items in Mobile.

It goes up one cent, so many items you buy will have a 10 percent tax.

The tax increase was passed by the Mobile City Council in early October 2012.

The sales tax increase was the center of debate for months in the council meetings. Mayor Sam Jones pushed the council to approve the increase to help make up for what he said was a $29 million shortfall.

the tax had gone in effect.

FOX10 News talked to people shopping at Target Department Store at Bel Air Mall in Mobile Thursday.

Mobile resident Betty Norris said, "Oh, it went to 10 percent? I did not I wasn't aware of that."

 She wasn't the only one.

 Debbie Stewart of Mobile said, "No, I did not (realize tax had gone up to 10 percent.)"

 And Delane Cort said, "I didn't know it went into effect. I hadn't really thought of that."

 And what did they think about the increase?

 Norris said, "It really doesn't affect what I buy, because I live in Mobile, and you have to buy certain things anyway. I hate that it went up though, because things are high enough as they are."

 And Thinester Johnson of Mobile said, "I'll be more conscious of prices."

 The owners of Inside Up Clothing Store in Mobile made sure they remembered it was the day to make the change.

 Becky Nance said, "We had actually put a post-it note on the register here to remind us."

 Something else store owners here in the Mobile area were aware of.

 While the sales tax in Mobile is 10 percent, in places like Pascagoula, Mississippi, it's seven percent.

 Store owners do wonder if the higher tax will cost sales down the road. 

Nance said, "Not all of our customers comment on it, but, I would say the majority are from out of town, maybe, and they'll say, 'What was the tax?,' and they'll just comment, 'That's kind of high.' "

 And, like it or not the change comes when we're getting ready for the busiest shopping time of the year.

 The sales tax increase does not affect food and beverages, lodging, car rentals, gasoline, wine or tobacco.

The tax was approved after council member Gina Gregory changed her mind and voted in favor of the increase.

Here's how the tax increase breaks down:

• 25 percent will go to the capital budget
• 25 percent will go to economic development
• 25 percent will go to an escrow account for public safety and service
• 25 percent will go to the general fund.

The increase will be in place until July 2015.