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New York state to withdraw sales tax on clothing
Mar '11
New York State is close to reinstating the sales tax break on clothing and footwear, but would reduce the price range of the items qualifying for this exemption to half than what was allowed under the previous exemption rules.

The exemption would be reintroduced from April 1, 2011 subsequent to which sales of clothing and footwear items costing less than $55 would no more be subjected to sales tax of four percent.

The items used to prepare or repair clothing or footwear would also qualify for this exemption.

Under the previous exemption rules, the four percent sales tax exemption was available to clothing and footwear items costing less than $110. However, in order to offset the State's budget deficit, the legislators ended this exemption from October 1, last year.

In addition to the four percent sales tax, the State would also stop collecting the 0.375 percent special sales tax that it charged on sale of clothing and footwear items in Nassau, New York City and Suffolk counties on Orange and Long Island, Dutchess, Putnam and Westchester counties in the suburbs north of the city.

Fibre2fashion News Desk - India

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