FOR IMMEDIATE RELEASE Release # 015-00
Sunday, January 16, 2000
Contact: Sunny Mindel/Curt Ritter 212/788-2958
Bernadette O'Leary/Bruce Brodoff 212/ 312-3523 (EDC)
From January 15th to January 21st, 8.25% Sales Tax On Clothing
And Shoes
Under $500 Will Be Eliminated
Permanent Elimination of 8.25 % Tax On Clothing and Shoe
Purchases
Under $110 Begins March 1st
Mayor Rudolph W. Giuliani and New York City Economic Development Corporation President Michael G. Carey today announced that during the City's seventh Sales Tax-Free Week, January 15th through January 21st, the 8.25 percent sales tax on clothing and footwear items under $500 will be eliminated. The Mayor also reminded New Yorkers that beginning March 1, 2000, the tax on clothing and footwear under $110 will be permanently eliminated, bringing significant savings to consumers.
"This is a great way for New York City families to start the new year," said Mayor Giuliani. "Our successful fight to eliminate this regressive and burdensome sales tax will now put money back in the pockets of hardworking New Yorkers who know how to spend it best. Each year The Shopping Capital of the World loses more than $700 million in retail sales because New York taxes shoes and clothing while New Jersey doesn't. The overwhelming success of our previous tax-free weeks confirmed my belief that dropping the sales tax stimulates retail sales and creates jobs, and I commend the State Legislature for permanently dropping this tax on clothing and footwear under $110 beginning March 1st."
During this sales tax-free week, all clothing and shoe items that cost less than $500 per article will be exempt from the 8.25 percent sales tax. The exemption applies to most clothing and footwear. It also applies to most fabric, thread, yarn, buttons, zippers and like items used or consumed in making or repairing sales-tax exempt clothing. Alterations to exempt clothing are likewise exempt from sales tax during the one-week period.
"During the tax-free weeks that we've had over the past several years, sales increased by up to 77 percent, generating more economic activity and more jobs for New Yorkers. Permanently eliminating the sales tax on clothing and footwear under $110 will allow New York City businesses to compete with stores in New Jersey and Connecticut, helping fuel more economic growth," said Mr. Carey.
The permanent elimination of the sales tax on items under $110, which will take effect on March 1st, is expected to generate $910 million in direct and indirect spending in the City and create an additional 13,200 jobs.
For a list of exempt and non-exempt items, visit NYC.gov, the Official New York City Website, at www.ci.nyc.ny.us.