Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: October 30, 1996

Release #562-96

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


CITY AUTHORIZES ONE WEEK EXEMPTION ON LOCAL SALES TAX COLLECTION
FOR CLOTHING AND FOOTWEAR PURCHASES OF LESS THAN $500 PER ARTICLE DURING JANUARY

Mayor Rudolph W. Giuliani and City Council Speaker Peter Vallone today announced that New York City will participate 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. Earlier today, the New York City Council adopted legislation jointly sponsored by the Giuliani Administration and the City Council (Resolution No. 1916) authorizing the City to participate in the sales tax exemption program.

"As I first proposed in our Fiscal 1996 Budget, 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 our local sales tax. I will continue to encourage the State Legislature to expand this initiative from one week to 52 weeks."

"This action is a belated holiday gift for New York City consumers and merchants," said Council Speaker Peter F. Vallone. "The Council's action today is good news, not only for consumers but for shop owners as well."

This past summer, at the urging of the Mayor, the Governor and State Legislature authorized a one week sales tax exemption on clothing and footwear purchases to be in effect from January 18-24, 1997. Under the state legislation, purchases of clothing, footwear and fabrics of less than $500 will be exempt from the four percent state sales and use tax (and the .25 percent MTA tax). 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.



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