Press Release Archives #013-97

Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: January 8, 1997

Release #013-97

Contact: Colleen Roche (212) 788-2958 or Deirdra L. Picou (212) 788-2971

MAYOR GIULIANI KICKSOFF CAMPAIGN TO PROMOTE ONE WEEK EXEMPTION ON LOCAL SALES TAX COLLECTION FOR CLOTHING AND FOOTWEAR PURCHASES OF LESS THAN $500 PER ARTICLE

SALES TAX MORATORIUM DURING JANUARY 18 - 24, 1997

Mayor Rudolph W. Giuliani today kicked-off a campaign to promote New York City's participation in a one week, New York State-wide sales tax exemption experiment for clothing and footwear purchases under $500.00 during the week of January 18 through 24, 1997. Joining the Mayor in the Jamaica Market were Deputy Mayor Rudy Washington, Finance Commissioner Alfred C. Cerullo III and Consumer Affairs Commissioner Jose Maldonado.

"As I have announced in every budget I have proposed, this tax break will help to make New York City's business community more competitive in this key area of retail sales," said Mayor Giuliani. "For too long, we have let tax policies provide an advantage to other states. Now we're striking back. New York City has added to the effectiveness of this tax initiative by allowing the exemption of our local sales tax. I will continue to encourage the State Legislature to expand this initiative from one week to 52 weeks."

As a result of state and local actions, virtually all clothing and footwear purchases for less than $500 per article will be exempt from the combined 8.25 percent sales tax. The sales tax for one week exemption will apply to most clothing, footwear and other articles worn on the body. The exemption also applies to most fabrics, thread, yarn, buttons, zippers, and like items used or consumed in the making or repairing of exempt clothing, provided that the item become a physical component part of this clothing. Alterations to exempt clothing are likewise exempt during this one week period.

This past summer, at the urging of the Mayor, the Governor and State Legislature authorized a one week New York State sales tax exemption on clothing and footwear purchases to be in effect from January 18-24, 1997. With the City exercising its option to offer a one-week exemption of the local four percent sales tax on clothing purchases of less than $500 per article, consumers will be able to shop for clothing, footwear, and fabrics selling for less than $500 per item during the one week period established by state law.