Higher Shoe and Clothing Prices for New Yorkers

October 02, 2010 :: Posted by - admin :: Category - News

Since September 2005, purchases of clothing and footwear costing $110 or more per item or pair in New York City incurred a 8 7/8% rate. Purchases costing less than $110 were fully exempt.

As of Friday, October 1, 2010, New Yorkers can expect to pay higher prices at the register on clothing and footwear. A 4.375 percent tax is now being charged on these items that cost less than $110. This was put in place as an attempt to collect more revenue to help offset the state’s projected $8.2 billion deficit. For the next six months, all clothing and footwear purchased in the city will be charged the four-percent New York State sales and use tax, as well as an additional 3/8 percent Metropolitan Commuter Transportation District tax to benefit the MTA.

The exemption will return in April of 2011 through March of 2012, but only on clothing and footwear purchases less than $55. Unless another change to the law is passed, the under $110 exemption will be back for good on April 1, 2012.

Share