White Plains, N.Y., passed a quarter-cent sales tax increase last week that will raise the total levy to 8.125%. The increase will add $5.6 million to the city’s coffer’s, according to the Journal News. The tax hike will take affect on June 1.

White Plains Mayor Joseph Delfino plans to push for another quarter-cent increase later this year as well as a 3% hotel occupancy tax, and he included a 4.9% property tax hike in his proposed fiscal 2009 budget, the Journal News reported.

Mayoral spokeswoman Melissa Lopez said the sales tax increase is intended to reduce the need for large property tax hikes in the future to balance the city’s budget.

It’s unclear what ratings impact the move could have on White Plains, which is about 25 miles north of New York City.

Moody’s Investors Service assigns a Aa1 rating to the city.

“Moody’s is communicating with city officials and is reviewing the situation to understand its impact on the financial strength of the city,” analyst Lisa Cole said in a statement. Moody’s spokesman Thomas Lemmon said the agency couldn’t go into more detail about the discussions since they were ongoing and could have a ratings impact.

White Plains has sold $99.2 million of bonds since 1999, according to Thomson Reuters data.

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