As of midnight Sunday, the new rate of 8.75% will take effect.

County Comptroller Mark Poloncarz says the extra revenue means a balanced budget, which will send a good message to Wall Street and the bond rating agencies.

"They can come back and look at the Erie county financial situation and see that there is a genuine revenue stream that's going to come in to pay for our expenses, and therefore, it should hopefully, in the long term, make for a better rating," Poloncarz says.

The tax increase is temporary and is set to expire in November 2007.

It is expected to bring in an extra $5 million a month for Erie county.