SAN JOSE (KPIX 5) — Shoppers in San Jose are going to have to pay more for goods and services.
The city’s sales tax jumped from 8.75 percent to 9 percent Saturday and shoppers are bracing for sticker shock.
An $8 purchase just 24 hours ago, now costs $.02 cents more for the exact same items.
Some local shoppers fear that a penny here, a penny there, and a thousand purchases later, will add up to tens, if not hundreds of dollars more.
“One item, two pennies more, what do you say? Not a big deal.” says San Jose resident Leoni Watts. “What if I say $200? That’s a lot. I just bought a motorcycle and that’s expensive.”
It will add considerably more for people buying big ticket items, like motorcycles or new cars. A $34,000 vehicle will now cost $85 dollars more to drive home.
San Jose city leaders want to use the extra tax money to fix potholes and hire more firefighters and cops. They estimate the tax hike will generate $30 million in its first year.
Though San Jose now has one of the highest sales tax rates in Santa Clara County, it’s still relatively low compared to neighboring Alameda County, where sales tax starts at 9.5%. Four cities, including San Leandro, have a 10% tax rate.