State May Reinstate Tax On Items Under $110

Because Albany is facing a $9.2 billion budget deficit (and is over 80 days on a budget), state leaders are now circling around reinstating the 4% sales tax for retail items under $110. The Times Union reports that two "state officials, speaking on condition of anonymity, said the proposal would indeed increase sales taxes on clothing, but that there would be tax-free periods such as the time before school starts in the fall and around the December holidays. Clothing and footwear that costs less than $110 became exempt from the state's 4 percent sales tax in 2007, although most counties and some cities tax the sales."

Crain's has more details. Basically, the tax exemption would be gone "for about six months, starting in the fall... Then, on April 1, 2011, the exemption would return for a year, but only for clothing items costing up to $55. The full $110 exemption would be brought back in April 2012, according to the source.... The exemption, which also covers footwear, spares shoppers from the state's 4% sales tax and from the 0.375% tax on purchases in the 12-county region served by the Metropolitan Transportation Authority. It has been in effect since April 1, 2006. New York City's sales tax of 4.5% has been waived on clothing and footwear purchases under $110 since Sept. 1, 2005."

Here are the tax rates around the state; the NYC sales tax went up last year.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on June 24, 2010 3:11 PM

Comments [rss]

LB

Say goodbye to like 80% of all that sales revenue .

Ragingsemi

oh no! now my H&M button down white work shirts will be almost $20. Give me an f-ing break, we all know our government is in financial shit. Is no one willing to pay an extra 4% on your (insert favorite sports team here) jerseys?

gawkthis

yes! charge working people more for the same goods they can buy in NJ at 1/3rd the tax rate (in Elizabeth). that's the intelligent way to increase tax income.

are these guys drinking the funny koolaide?

youngpro

Felixthecat:

"I am native New Yorker"

Serously?

FelixtheCat & Christine Quinn'

It's seriously

youngpro

comprehension and grammar: FAIL

FelixtheCat & Christine Quinn'

Also even though China is prospering, the large majority of their population live in dired conditions. I wouldn't want to live in China. Which is why NYC and the rest of the country needs living wages. NYC looks and smells llike a 3rd world country. This pains me to ssy but this is how it is Now. I am native New Yorker and now I want to leave it not because of taxes but the lack of quality of life here.

Amanda Harletsch

the purism of Nyorkers is pretty amusing!

NYC is like a 3rd world country, and even worse.

The gap between BRKYN and Manhattan is ABSURD!

like once century of difference.

youngpro

YOU ARE NOT A NATIVE NEW YORKER.

liar liar!!!!!!!!!!!!

Cannibal

lol

FelixtheCat & Christine Quinn'

Jles, regarding deregulation. Europe didn't have the financial scandals and this oil spill as we did because of their regulations. Just a point to keep in mind.

FelixtheCat & Christine Quinn'

Thanks for the apology.

youngpro

you should apologize to EVERYONE for ruining threads on a daily basis.

laisla

right? Is there a way we can hide Felix? He'd be fun if he were intelligent or good at debate. But he's just sad.

The Hanger-On

Maybe related, maybe not. Why is it that I never pay sales tax whenever I buy anything at my corner bodegas? I would rather not pay almost 9 percent more for my beer and chips, of course, but I often wonder how sales tax is collected for businesses like these that only seem to collect money abstractly, that is, without computerized inventory, receipts, etc.

jaycjay

There is no sales tax in New York on retail sales of things like beer and chips.

Some items you might buy at a bodega are taxable, but the common practice is to simply include the tax in the posted price.

jaycjay

Actually, re-thinking that, beer is probably taxable. Generally, though, food and beverages are only taxed when sold by a restaurant or caterer.

Petey

beer is taxed, as is soda (sales tax on both). Prepared foods are taxed (deli sandwiches, prepared foods including salads, etc). Unprepared foods are not such as fruits, vegetables, prepackaged foods, etc. Candy is taxed. Juices and milk are not taxed, but juice drinks (less than certain % of juice such as fruit punk, lemonade, etc) are taxed.

FelixtheCat & Christine Quinn'

I agree on the domestic production. Not so much on what's produced. We need to stiop all the outsourcing. Which is why I was happy about obama's green job production intiatives. But it was all talk.

jles

Listen, I can't say I'm a fan of some of the stuff that's produced here either. I mean....Nicholas Cage movies!? Yuck! But, the bottom line is that if there is a demand for a product somewhere on this earth, we should be doing everything we can to promote it's production.

Raising taxes, over-regulation, outrageous pensions and entitlement programs for employees, healthcare standards on small businesses... All of these things are profit hurdles for companies, and it dis-incentivizes them to stay on American soil. We as Americans need to all stop thinking we're "entitled" to everything, start saving our money, spending within our means, and working hard for businesses that will provide middle class jobs on American soil. It's how this country was founded, how this country became great, and how this country will regain prosperity again.