CHICAGO -- The Cook County sales tax rate is climbing a percentage point, to 9 percent, that will push Chicago's tax on general merchandise to 10.25 percent on Tuesday.

Video: Chamber Of Commerce Expert, Harry Seigle, Reacts Video: July 1st Tax Increase Video: Retailers, Consumers Squeazed

County merchants fear the rise will push shoppers to the collar counties, while nearby counties are hoping the tax hike will have that effect.



NBC5's Kim Vatis spoke with Harry Seigle, with the Chicago Chamber of Commerce, Tuesday. According to Seigle, surveys indicate that consumers are mad about the tax hike. Most of the 3,500 people polled on the issue said that they would leave Cook County to do their major shopping.

"Over 70 percent of those polled ... said they would shop elsewhere or, worse yet, not shop at all," he told Vatis.

Seigle said that the new sales tax "basically makes our merchants compete on their knees. This is a huge disadvantage. They either have to cut their price -- which cuts their profit margins -- or ... they simply have to suffer lack of sales."

The Daily Southtown reported that the difference might not be that noticeable on smaller items, but when buying large items like a refrigerator or big-screen TV, the tax disparity might be enough to drive shoppers to Will County or Lake County, Ind., which has a flat 7 percent rate.

The Southtown reported that the increase means Chicago will have the highest sales tax rate of any big city in the nation.