You've got less than two months to stock up on threads before the taxman jacks up the price by 4%. Well, we had a nice run. The sales tax on clothing purchases under $110 was eliminated in 2007, but like all things it's back in fashion again. As part of a compromise to get a budget passed 125 days past deadline, lawmakers voted to approve $1 billion in new taxes, including the reinstatement of sales tax on clothes. But Governor Paterson says he's not happy about it, because data shows that sales taxes on necessities hurt the poor most.
"Begrudgingly, to get the budget done, we accepted the sales tax, but it's really going to hurt low-income people," Paterson said during a conference call with reporters. Paterson had wanted to raise revenue and (ostensibly) improve New Yorkers' health by implementing a tax on sugary beverages, but that artificial grape died on the vine. So Starting October 1st, a 4% sales tax will be added to all clothing purchases. Buy your Hush Puppies and Ed Hardy caps before it's too late!