MAYOR GIULIANI AND MODELL'S GET SET FOR ANOTHER SALES TAX-FREE SHOPPING WEEK
-- 8.25% Sales Tax On Clothes And Shoes Under $500 Will Be Eliminated From January 17th to January 23rd --
Mayor Rudolph W. Giuliani today joined Michael Modell, President of Modell's Sporting Stores, to announce that beginning today Modell's will eliminate the sales tax --two days ahead of schedule -- to kick off the City's third tax-free shopping week. From January 17th and continuing through January 23rd the 8.25 percent sales tax will be suspended throughout the City on clothing and shoes priced under $500.
The Mayor applauded Michael Modell for promoting the tax-free shopping week and offering customers a nine percent discount on all apparel items for two days prior to the scheduled sales tax-free week. In addition, during the month of February, Modell's will offer its customers the opportunity of another nine percent discount if they present a Modell's receipt showing they had shopped during the sales tax-free week, January 17 - 23.
"New Yorkers have reason to celebrate as we kick off our third sales tax-free week this Saturday, January 17th," said Mayor Giuliani. "There were those who doubted that eliminating the sales tax on clothing and shoes under $500 would be successful, but we proved them wrong. During our two sales tax-free shopping weeks last year retail sales increased by 73 percent in January and 48 percent in September, even when shoes were not included. The success of these two tax-free weeks demonstrates that dropping the tax stimulates retail sales and will create jobs.
"Each year the shopping capital of the world loses more than $700 million in retail sales because New York taxes shoes and clothing and New Jersey doesn't," the Mayor continued. "This week New Yorkers can send a strong message to Albany that the sales tax on clothes and shoes under $500 should be eliminated. I encourage all New Yorkers to save money and send a message -- shop till they drop the tax forever," the Mayor concluded.
Last January, retailers experienced 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.
"On behalf of our customers and all New Yorkers I want to thank Mayor Giuliani for his leadership in our continued fight against this regressive sales tax," said Michael Modell.
The City's third tax-free shopping week is part of the Mayor's ongoing effort to permanently eliminate the sales tax on clothing and shoes. This past summer, Governor George E. Pataki and the legislature agreed to eliminate the sales tax on clothing costing less than $100 effective December 1, 1999. As part of the State 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 1, 1999. Other localities, including New York City, will concurrently eliminate their local sales tax. The result in New York City will be a savings of 8.25 percent for shoppers.
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. If the sales tax were completely eliminated on clothing and shoes, it is estimated that it would create 19,600 jobs and $1.4 billion in direct and indirect spending in New York City.
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