New York Begins Collecting Sales Tax on Clothing

Wednesday, October 06, 2010

Many New York shoppers enjoyed an exemption for clothing and shoes that cost less than $110.00 per item.

However, on October 1st, 2010, New York’s clothing and shoe exemption will be temporarily put in the closet. New York decided to suspend the exemption on clothing and shoe purchases costing less than $110.00 until spring of 2011.

New York plans to bring the exemption back over a two year period.

The exemption will be reinstated April 1, 2011, but only for purchases less than $55.00.

Things will return to normal on and after April 1, 2012, when the exemption will again apply to items purchased which are less than $110.00.

Retailers don’t expect a decline in sales, but would appreciate having the state Legislature impose tax-free periods throughout certain parts of the year, to stimulate sales.

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