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.