In a move that will save tax payers millions of dollars, New York State will remove the four percent sales tax on clothing, footwear and related items that are sold for less than $110 dollars.
The sales tax exemption, which started on April 1, applies to all of those goods that are bought in person, online, by telephone or by mail. It’s the second straight year for the program. The qualifying amount for this year’s program has doubled. Last year, the items needed to be sold at or below $55 to qualify for the exemption. The tax cut is estimated to save $210 million in total.
Assemblyman Mike Miller (D-Woodhaven) talked about the tax cut at a public appearance at Karako’s, a suit outlet store, on Jamaica Avenue.
He said that the exemption comes at a great time for shoppers while the economy is slowly getting back on track.
“This program was a huge success last year,” Miller said in a statement. “By doubling the amount this year, we are providing further relief at the registers for shoppers, giving them more bang for their buck. Plus, more shoppers mean more business for New York retailers, like Karako’s. ”
Queens Economic Development Corporation Executive Director Seth Bornstein was also elated with the news of the tax cut, saying that it’s a positive for people that do their shopping in Queens.
“With more than 45,000 diverse businesses stretching from bustling Downtown Jamaica to busy Main Street in Flushing to the high-volume Queens Center Mall in Rego Park, the borough is a great place to shop,” Bornstein said in a statement. “And with the removal of the state sales tax, there is another great reason to visit our clothing and footwear stores. Enjoy the fantastic merchandise and enjoy the savings.”
The sales tax cut also applies to items like thread, yarn and buttons that are used to create the clothing that is exempt. The tax cut does not apply to items like jewelry, watches and motorcycle helmets.
For a full list of what does and doesn’t qualify for the tax cut, go to www.tax.ny.gov.
