Sales Tax Break on Clothing Purchases Returns on Friday

Tomorrow, shoppers in Brome County and across New York will start saving 4% on many of their clothing purchases – no coupons necessary. Assemblywoman Donna Lupardo (D-Endwell) announced today that the state is repealing its portion of the sales tax on shoes and clothing items costing $55 or less. A family of four will save an estimated $90-$100 per year.

The tax-free status applies to relevant purchases on or after April 1. It includes all types of transactions: in-person, by phone, by mail and even online. Next year, the exemption will be expanded to cover apparel costing less than $110.

The state used to exempt apparel costing less than $110 from its sales tax. However, the exemption was temporarily suspended on October 1, 2010 to help close the budget deficit. Lupardo opposed and voted against lifting the sales tax exemption in the state budget last year.

“The sales tax exemption will help taxpayers keep more money in their pockets,” said Lupardo, a member of the Assembly’s Committee on Economic Development, Job Creation, Commerce and Industry. “This is especially important to border communities like ours. The return of the sales tax exemption will make us more competitive with Pennsylvania and keep money in our local economy.”

Many jurisdictions will continue to charge local sales tax on all clothing items. Broome County charges 4% sales tax on all clothing purchases. For more information on the sales tax exemption, visit the New York State Department of Taxation and Finance’s website at www.tax.ny.gov.