ASHTABULA — The Ashtabula Area Chamber of Commerce, responding to the wishes of its membership, announced Thursday it’s against the proposed half-percent sales tax increase.
The board researched and debated the raising of the county sales tax for almost a month, even going as far as inviting Commissioner Daniel Claypool to a special meeting to explain the county’s financial situation, said Jim Timonere, the chamber’s executive director.
The board also requested and read statements from the other two commissioners on their positions.
“Our membership was surveyed and the outcome of this survey played a major role in the board’s decision (to oppose the propose tax increase),” Timonere said. “With a high unemployment rate in Ashtabula County, what is just a few cents to some means much more to those out of work and struggling to survive.”
Ashtabula County’s retailers are at a disadvantage to begin with, as its neighbors to the east and west both offer expanded shopping opportunities and lower tax rates. To the west, Lake County boasts several large retail districts and a 6.25 percent sales tax. Trumbull and Geauga counties are at 6.5 percent.
To the east, Erie and Mercer counties, Pa., have even lower sales taxes, 6 percent, diverse retail options, a large mall and no sales tax on clothing.
A study done several years ago showed that the county loses $61.3 million annually in retail sales to other counties. Timonere feels that number is probably higher with the loss of several major county retailers in the past year or so. He fears the retail exodus will increase if consumers base their shopping decisions on the sales-tax rate.
“Although we agree the money saved by shopping in an area with lower sales tax is truly not a savings when you factor travel time,” Timonore said. “People usually spend more money when they travel to shop by going to restaurants or even stopping for gas and beverages on the ride home. This becomes additional business lost for our local merchants.”
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Chamber opposes sales tax hike
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