Little Rock businesses adjust to sales tax hike

In your FOX16 Money Alert, Little Rock's sales tax rate jumped one-percent overnight in a move approved by voters in September to pay for a variety of city services.

That move has businesses making adjustments this Sunday.

Larry Bartlett started charging his customers more Sunday.

"It's just part of doing business. Nothing we can do about it," says Bartlett.

Bartlett's Edwards Food Giant store in Little Rock now taxes non-food items at 8.5% which includes state, county and city taxes. He taxes food at 4%, unless it's pre-prepared.

Bartlett thinks the increase took many of his customers by surprise.

"I doubt that many of them are aware that it took effect today, unless they seen something on the news or in the newspaper this morning tell them about it. I remembered it was going up, but then forgot about it til this morning," he says.

Customer Carol Mathews did not forget saying, "It's just a way of life."

But Mathews worries about how taxes will impact household budgets.

"I just get concerned when taxes increase like for the people who are on fixed incomes, like social security," she says.

The tax, expected to start bringing revenue into the city in March, will pay for everything from new police officers, to a new fire station and improvements at the zoo.

"It's making sure it's going and being used well, I think it my question and a lot of people's question. Make sure it's used well. I don't mind it being used for extra policemen or whatever they're using it for, but as long as it's used well," says Bartlett.

Also, if you buy a used car this year, you could get a tax break. Starting Sunday, you don't have to pay sales tax on any used car sold for less than $4,000 in Arkansas. The sales tax exemption used to be $2,500.

Lawmakers expect the tax cut to cost the state $5 million a year.