Contact: Colleen Roche (212) 788-2958, Curt Ritter 212-788-2971
or Bernadette O'Leary 212-312-3523 (EDC)
Mayor Rudolph W. Giuliani today joined Paul Ginsburg, owner of Moe Ginsburg men's retail store, to kick off the retailer's early start of the upcoming tax-free shopping week proposed for January 17 through January 23, 1998. The City's third tax-free shopping week, pending New York State Legislative approval, will suspend the sales tax on clothing and shoes priced under $500 throughout the City.
The Mayor applauded Moe Ginsburg for promoting the tax-free shopping week by offering customers an 8.25 percent discount on all apparel items for ten days before the proposed start of the tax-free promotion.
"This is a great way for New York City to start the New Year," said Mayor Giuliani. "Shoppers will have a real opportunity to save money, and the City has another opportunity to send a message to the State Legislature. We want to make sure that New Yorkers everywhere join in our effort to convince the Legislature that the tax should be permanently eliminated on apparel and shoes less than $500. The success of our last two tax-free weeks demonstrates that dropping the tax stimulates retail sales and helps generate jobs for New Yorkers."
Last January, retailers saw a 73.6 percent increase in sales on apparel and shoes costing less than $500 during the City's first tax-free shopping week. In September, retailers saw a 48 percent increase in sales on apparel items priced at less than $100 during the City's second tax-free shopping week. The permanent elimination of the sales tax on items under $100, excluding shoes, is expected to create 11,000 jobs and $760 million in direct and indirect spending in New York City. If the sales tax were eliminated on clothing and shoes costing less than $500, it is estimated that such an elimination would create 17,400 jobs and $1.2 billion in direct and indirect spending in New York City.
"Mayor Giuliani should be commended for championing the elimination of sales tax on clothing," said Paul Ginsburg, owner of Moe Ginsburg. "Over the years, we have seen business, jobs and commerce go across the river to New Jersey where there is no sales tax on clothing. We feel it is our patriotic duty to assist the Mayor by helping eliminate this onerous sales tax on all clothing ten days before the proposed sales tax-elimination week begins."
Charles Millard, New York City Economic Development Corporation President, said, "Every year, New York City loses $700 million in apparel sales to New Jersey. The Mayor has successfully brought this issue to the table in Albany, and his efforts have already increased business for retailers in New York City."
The City's third tax-free shopping week is part of the Mayor's ongoing effort to permanently eliminate the sales tax just on clothing and shoes under $500. This past summer, Governor George E. Pataki and the legislature agreed to eliminate the sales tax on clothing less than $100 effective December 1, 1999. As part of the New York State Legislature's budget, the State's four percent and the Metropolitan Transit Authority's 0.25 percent sales tax on clothing purchases under $100 will be eliminated effective December 1999. Other localities, including New York City, will concurrently eliminate local sales tax. The result in New York City will be a savings of 8.25 percent for shoppers.
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.