New York State to bring back sales tax break on clothing, footwear

NY The state is about to restore its sales tax exemption on clothing and footwear, but will extend it to items costing only half as much as under the previous exemption rules.

Starting April 1, the state will stop collecting its 4 percent sales tax on clothing or footwear sold for less than $55 per item.

The exemption includes things used to make or repair clothing or footwear.

The state used to exempt apparel costing less than $110 from its 4 percent sale tax. Lawmakers did away with the exemption on Oct. 1 to help close the state s budget gap. The exemption is to return to the under-$110 level on April 1, 2012.

Clothing and footwear also will become exempt on April 1 from a special 0.375 percent sales tax charged in New York City, Nassau and Suffolk counties on Long Island, and Orange, Putnam, Dutchess and Westchester counties in the suburbs north of the city.

Many jurisdictions will continue to charge local sales tax on all clothing items, according to the state Department of Taxation and Finance. Among them, Onondaga, Cortland, Cayuga and Oswego counties and the cities of Auburn and Oswego will continue to charge 4 percent sales tax, a Taxation and Finance publication said.

Madison County outside the city of Oneida will exempt clothing and footwear less than $110 from sales tax. Inside Oneida, the city will continue to collect 2 percent local sales tax on all clothing and footwear.