North Carolina sees another 'temporary' sales tax increase

Get ready to pay a few more pennies every time you shop: North Carolina's sales tax goes up 1 cent on every dollar starting Tuesday.

The tax increase, passed by the legislature this summer, is expected to raise $803.5 million.

It is supposed to expire in 2011. However, a 2001 sales tax increase characterized as "temporary" is still in effect.

The state is dealing with a massive budget shortfall, and passed $990 million total in new taxes in this year's budget.

The sales tax's impact won't be immediate, but over time the extra 1-cent bite will start to depress people's spending, said Mark Vitner, senior economist with Wells Fargo.

"It's one that will gradually eat away at consumer purchasing power," Vitner said.

Read more at CharlotteObserver.com