How will sales tax affect locally owned businesses?

WICHITA, Kan. – Kansas business owners will see a change in its sales tax soon because the 6.5% tax increase will take effect July 1st.

Business owners we talked to say it won’t take much to make the changes in their cash registers, but a local café owner thinks the sales tax increase will hurt more businesses.

Tony Abdayen, the owner of La Galette Café, said, “It’s going to hurt probably some businesses. I hope they won’t raise it that much in the long run. Otherwise, people (are) gonna, especially the small business, we’re going to feel the difference, I guess. So people may cut down if they keep raising the tax up all the time.

Just last Friday we told you lawmakers had agreed to a sales tax hike to fix the budget deficit.  The statewide sales tax in Kansas will be going up 0.35 percent on July 1st.

Businesses need time to make the switch on their registers, and some are expecting the change to affect their business.

Julie Craft is the owner of Sweet Cheeks Babies.  Her store in Wichita has been in business for five years selling items for natural parenting.  Craft says due to the sales tax increase, if she has to increase her cost and causes her business to slow down, that could affect her bills.

“Things like gas and our services and our materials and stuff that we use, the price will go up. So I’m sure at somewhere, there will be. It all has to come from somewhere.”

Craft says they try to have less impact on customers as much as possible, but they still have to pay their bills. So someone will be impacted somehow.

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