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Tax To Be Added To Gas, Manicures

Tax To Go In Effect July 1

UPDATED: 10:33 am EDT July 1, 2003

Gas prices will go up just in time for the Fourth of July, NewsChannel5 reported.

A 2 cents a gallon state-imposed tax will go into effect today.

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WEWS said it is going to cost 6 cents a gallon more to fill up your tank over the next few years. All the money is going to be used for highways and road repairs around the state, officials said.

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Mary Anne Savoca has been in the beauty business for 69 years and not once has she had her services be taxed, until now, NewsChannel5 reported.

"If they wanna look beautiful, it's a few bucks more," she said.

For the first time ever, Ohioans will soon pay taxes on services like manicures, pedicures, tattoos and taxis. The idea is to wipe out the deficit in the state budget.

"It's a desperate move on the governor's part and when you're desperate, sometimes you do the wrong thing," said Dino Palmieri, a beauty salon owner.

It means a manicure at one of Palmieri's Cleveland area salons will jump from $17 to $18.36.

"I guess it won't be that bad," one customer said.

But if you are buying a car, which is already taxed, it gets worse.

A $40,000 sport utility vehicle will cost $2,800 in state taxes today. On July 1, it will cost an extra $400.

"Sales have been going crazy," said Evan Fineberg, of Bass-Fineberg Leasing, Inc. "We're up 20 percent over normal 'cause there's a tremendous savings for the consumer if they buy this month versus next month."

No one is happy about the tax, but consumers will continue to buy cars and have services done.

"It's only 8 cents on a $1 -- not that much where I'm going to change what I do," another customer said.




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