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Sales tax increase goes into effect

July 01, 2010|By Dave Roberts | KWCH 12 Eyewitness News

(WICHITA, Kan.) — It's the beginning of the new fiscal year, and it just got more expensive to shop in Kansas. That's because the state's sales tax increased by a penny on July 1.

State lawmakes implimented the increase because of a four hundred million dollar deficit. They say the funds raised will equal more than three hundred million dollars.

According to the state's Department of Budget, ten percent of the funds will go to the department of transportation. It's expected to earn an additional thirty five million dollars for a ten year plan for highway maintenance and contruction projects.

The rest of the cash is going into the state's general fund, which pays for just about everything else.

More than half of the general fund pays for public education and higher education.

The extra penny will also pay for the state's police agencies and help keep the state government running.

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