| Contact: | Sunny Mindel/Curt Ritter (212) 788-2958 |
| Bernadette O'Leary/Bruce Brodoff (212) 312-3523 (EDC) |
Mayor Rudolph W. Giuliani marked the beginning of the end of the 8.25% sales tax on clothing and footwear items costing less than $110 in New York City at 6:30 a.m. (EST) this morning at Macy's in Herald Square. The Mayor was joined by Joan Rivers and Curtis Sliwa for an early morning shopping spree, to be among the first New Yorkers to take advantage of the newly enacted consumer tax-relief, which takes effect today.
The permanent elimination of the sales tax on items of clothing and footwear priced under $110 follows a four-year campaign by the Mayor to have the 8.25% tax permanently eliminated on clothing and shoe purchases in New York City for the millennium. During the past three years, seven sales-tax-free weeks met with remarkable success and demonstrated that dropping the tax stimulates sales and creates jobs. During these one-week Citywide sales, New York City retailers experienced sales increases as high as 77 percent.
"The overwhelming successes of these tax free weeks obviously sent a message to Albany that did not go unheeded," said Mayor Giuliani. "The removal of this regressive tax on items costing less than $110 will save New York City families hundreds of dollars each year, add approximately 13,200 jobs and boost the City's economy by $910 million. I commend Governor Pataki and the State Legislature for passing this important legislation.
"It will also do much to recover the $700 million per year New York City merchants lose to New Jersey because of this tax," the Mayor continued. "Working families with lower incomes that typically spend a large portion of their income - as much as 12 percent - on clothing and footwear will especially benefit from the removal of this burdensome tax."
It is estimated that rescinding the sales tax on all clothing and footwear, as the Mayor has proposed, will result in 19,600 additional jobs and $1.4 billion in annual economic activity.
Hal Kahn, Chairman and CEO of Macy's East, said, "We at Macy's sincerely thank Mayor Giuliani for his support in eliminating the sales tax on clothing and footwear, and for all his efforts in making it a reality. As all retailers in the City of New York, we commend his strong leadership on this issue and recognize the positive impact that it will have on New York City's shoppers, as well as the retail community."
The elimination of the sales tax applies to most clothing and footwear items. It also applies to most fabric, thread, yarn, buttons, zippers, and similar items used in making or repairing exempt clothing, provided the item becomes a physical component of the clothing. Alterations to tax-free clothing are also free from sales tax.
"The repeal of this tax will do much to bolster the apparel and footwear retail industries in our City," said Michael G. Carey, President of the New York City Economic Development Corporation (EDC). "The City's 4,300 firms currently employ more than 74,000 workers and record sales of more than $8.2 billion annually. This sales tax elimination will add more than 8,100 retail and 5,100 related jobs to the City's employment rolls."
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs.
For a list of exempt and non-exempt items, visit NYC.gov, the official New York City Website, at www.ci.nyc.ny.us.
Macy's is a member of the NYC 2000 Millennium Committee. NYC 2000, the Mayor's Office for the Millennium, was established through an Executive Order by Mayor Rudolph W. Giuliani to ensure that the City's millennium celebrations showcase New York as the capital of the world before an international audience. Comprised of a dynamic group of business and community leaders, and chaired by actor Ron Silver, NYC 2000's events will reflect the best that New York City has to offer and feature celebrations honoring New York's diverse industries, continuing until the official start of the millennium: New Year's Day, 2001.