Stores in Nogales, AZ hoping for more sales with Mexico's inc - WSFA.com: News Weather and Sports for Montgomery, AL.

Stores in Nogales, AZ hoping for more sales with Mexico's increased sales tax

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NOGALES, AZ (Tucson News Now) -

Stores in Nogales, Ariz. are hoping for more sales this Christmas season. It's because of higher sales taxes just across the border. Mexico is raising sales tax for border states from 11 to 16 percent at the beginning of next year.

With Mexico raising its sales tax, U.S. shopkeepers just feet away from the border say it will help their bottom line.

"More profit for us, more business," said Josue Lino, who works at ABC Trading.

The sales tax in Nogales, Arizona is at 8.6 percent. So, that cuts it down right in half for Mexican shoppers.

Lino says his store already gets crowded with shoppers from across the border and hopes these crowds keep coming.

"Mexican people across the line are coming and taking basically $25 items and selling them across the line, doubled," said Lino.

Other shopkeepers are also happy about the news, saying in the past, there have been some challenges with attracting some Mexican shoppers.

"Hopefully it will bring people into Nogales and into Bracker's that normally would be shopping in Mexico because they've gotten tired of wait times or different things," said Bruce Bracker, co-owner of Bracker's.

The previous sales tax was supposed to help Mexican businesses compete with stores in the U.S. But, Mexican lawmakers say those who live close to the border on average make more money and should have to pay the same as the rest of the country.

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