Indiana 1-Percent Sales Tax Increase Will Raise $800 Million a Year.

Byline: Michele McNeil Solida

Nov. 24--As holiday shoppers cash in on bargains, the state will be cashing in -- a penny at a time -- on every dollar spent in stores beginning Dec. 1.

One week from today, Indiana's sales tax will increase to 6 percent from 5 percent -- a tax hike expected to raise more than $800 million a year.

"It is the single biggest bang for the buck. It raises a lot of money quickly," said Richard Feinberg, director of Purdue University's Center for Customer-Driven Quality.

But "consumers will hardly notice" the increase, he insisted, "and their shopping habits won't be affected at all."

This was one of four general tax increases …