Mayor Bloomberg will propose a sales-tax increase tomorrow higher than the 0.25 percent spike he had recommended in January, sources told The Post.

They said the mayor needs to boost the city’s sales-tax rate because a series of other sales-tax measures he had been counting on to raise $894 million for his $60 billion budget in 2010 came up short in Albany.

“We need to raise $1 billion,” said an administration source. “We’re still going to raise $1 billion, but we’re going to rejigger the way we do it.”

Bloomberg had hoped to piggyback on Gov. Paterson’s plan to expand the state sales tax to currently tax-free purchases such as nondiet soft drinks and Internet music downloads.

But Paterson squashed those proposals amid mounting opposition.

Bloomberg’s January budget plan also called for repeal of the city sales-tax exemption on clothing sales under $110, assuming Albany would do the same.

But state legislators balked, leaving the city holding the bag again.

Source:  NY Post