Tax Free Shopping is back!
Beginning April 1, 2012 clothing, footwear and related items sold for less than $110 each will be exempt from the New York State’s 4% sales tax. The elimination of this sales tax is estimated to save New York taxpayers $210 million.
The 4% state portion (and the MTA’s 0.375%) of the sales tax was eliminated in an effort to help consumers save money while bringing in additional revenue to stores throughout the state.
There’s more good news: On April 1st , local small businesses and taxpayers will finally be free of the burdensome MTA Payroll Tax, which was enacted under the previous administration and over my strenuous objections.
I fought diligently against this tax when it was proposed, and worked hard for its repeal on businesses, self-employed individuals, and schools. Much of the credit for this repeal goes to taxpayers, who voiced strong opposition to this burdensome tax.
On April 1, we can say goodbye to one more obstacle to doing business in New York, and hello to the elimination of state tax on clothing costing under $110.