FOR IMMEDIATE RELEASE
August 30, 2005
MAYOR BLOOMBERG ENCOURAGES NEW YORKERS TO TAKE ADVANTAGE OF SALES TAX-FREE WEEK FOR BACK TO SCHOOL SHOPPING
Clothing and Footwear Under $110 Exempt from Sales Tax August 30th through September 5th - 4% Permanent Roll-Back of City's Share Begins September 1st
Mayor Michael R. Bloomberg today encouraged New Yorkers to take advantage of sales tax-free week. The 8.375% sales tax will be lifted on purchases of clothing and footwear under $110 between Tuesday, August 30th and Monday, September 5th. On Thursday, September 1st, the City's 4% share of the sales tax will be eliminated and the sales tax on clothing and footwear less than $110 within New York City will be 4.375% starting on Tuesday, September 6th. The State is scheduled to eliminate their share of the clothing sales tax in April, 2007. The Mayor was joined at the Staten Island Mall by Borough President James Molinaro and Department of Finance Commissioner Martha Stark.
"This sales tax holiday provides an extra discount for back-to-school shopping," said Mayor Bloomberg. "The good news is, because our Administration fought to move up the elimination of our share of the clothing sales tax, when this sales tax holiday ends on Tuesday, the City's reduction in the sales tax kicks-in permanently. So after paying no sales tax on clothing and footwear less than $110 this week, New York shoppers will only pay 4.375% until April, 2007 when they will pay nothing."
"I hope that shoppers in every borough take advantage of the tax savings that is available on clothing and footwear this week, especially parents who may be planning to buy their kids clothes for when they go back to school," said Commissioner Stark. "And, to help get the word out, Finance has sent out information to every business district and community board translated into Chinese, Korean, Russian and Spanish, which is also available on our website. But, most important, this Administration has taken the bold step of eliminating the City's portion of the sales tax, so that New York City shoppers will continue to save even after Labor Day."
"With school resuming in the next week, this is an opportune time for families to save money on back-to-school clothing, and maybe do a little extra shopping with those savings," said Borough President Molinaro.
During the sales tax-free week, clothing and footwear under $110 will be exempt from New York's 8.375% sales tax. Items covered by the exemption include clothing, footwear, ties and scarves, hats, athletic clothing and diapers. Items not covered include jewelry and watches, handbags and umbrellas, rented clothing, and sports equipment. Previous sales tax-free weeks on clothing have increased retail sales by more than 70%. New Yorkers saved $23 million in taxes during the last sales tax-free week in February and are expected to save the same amount after during this tax-free week. The elimination of the City's share of the sales tax will save taxpayers $184 million in Fiscal Year 2006. New Yorkers should visit the State Department of Taxation and Finance's website at www.tax.state.ny.us or call 311 for more detailed information on how the program works.
Edward Skyler / Jordan Barowitz (212) 788-2958
Lisa Maluf (Finance)
View the photos
Watch the video in 56k or 300k