The New York government isn’t known for April Fool’s jokes so when they say beginning April 1 clothing and footwear costing less than $110 per item or pair are exempt from being taxed, they’re not pulling your leg.
As of yesterday, sales of eligible items will be exempt from the state’s 4 percent sales tax and a 0.375 percent Metropolitan Commuter Transportation District Tax. In New York City, this is in addition to the city’s 4.5 percent sales tax bringing the exemption total to 8.875 percent. That’s about $8.88 for each $100 item.
The exemption may be the deciding factor in regards to tourists and residents alike when it comes to shopping in NY.
The first exemption put into place by NY was in 2000. Depending on the state’s budget balancing needs, taxes were periodically suspended. According to Morris Peters, a spokesman for the New York State Budget Division, reinstating the tax from Oct. 1, 2010 to March 31, 2011 brought in $330 million in revenue for the state.
It’s good to know taxes helped balance the budget; but we are more excited to see a tax exemption work to our immediate advantage as we shop for shorts and wedges for spring. No April Fool’s here.
Source: The New York State Department of Taxation and Finance
