CHICAGO - Chicago's no Second City, at least not when it comes to sales taxes.

A boost in the Cook County sales tax that took effect on Tuesday means people shopping in Chicago now pay a cumulative 10.25 percent levy - the highest of any major U.S. city.

A $300 purchase of say, a couch, in Chicago would now carry a sales tax of $30.75. By comparison, New Yorkers pay about 8.4 percent while residents of Los Angeles pay 8.25 percent.

The county portion of the tax applies to clothes, furniture, restaurant food, and alcohol - not to groceries or medicine.

County Board President Todd Stroger pushed through a 1 percent increase this year to help close a more than $200 million shortfall in the county's $3 billion budget, saying new money would go toward rescuing public health care services.

While Stroger has been a favorite target of disgruntled taxpayers, his office notes that Cook County still only accounts for 1.75 percent of the sales tax paid by Chicagoans, with the largest chunk - 6.25 percent - levied by the state of Illinois.

Still, many businesses fear that lower total rates in nearby counties will draw customers away from Cook County.

"The sales tax will kill us," said Lorri Burke, manager at the Second Chance thrift store in Steger, located just inside Cook County on 34th Street.

On the other side of the same street, in what is Will County, some businesses aren't shy about exploiting their lower rates, with some displaying prominent signs that read, "No Cook County Tax."

Palatine, another community on the outer edge of Cook County, is so angry about the county sales tax that it even threatened to secede.

Annoyance about the tax runs deep.

Nearly 76 percent of respondents in a recent Chicagoland Chamber of Commerce poll said the higher sales tax rate would lead them to change their buying habits, including by traveling outside the county.

The taxes may hurt Chicago's market competitiveness and create hardships for businesses already struggling amid an economic downturn, said Jerry Roper, the Chamber's president.

"Cook County voters are tired of seeing headlines of cronyism, corruption and their tax dollars being thrown around like play money," Roper said.

But a spokesman for the Cook County Board president said residents who rely on county hospitals and other health care services understood the need to raise the sales tax.

"These institutions were at risk," said Sean Howard. "If it wasn't for the sales tax increase, some of the services would have been eliminated."