Release #411-98

Contact: Colleen Roche (212) 788-2958
Curt Ritter (212) 788-2971
Bernadette O'Leary (212) 312-3523 (EDC)

"This is a great way for New York City families to start the new school year," said Mayor Giuliani. "Shoppers will have a real opportunity to save money, and the City has another opportunity to send a message to the State Legislature. We want to make sure that New Yorkers everywhere join in our effort to convince the Legislature that the sales tax should be permanently eliminated on apparel and shoes. The success of our previous three tax-free weeks demonstrates that dropping the tax stimulates retail sales and helps generate jobs for New Yorkers."

During the City's three previous sales tax-free shopping weeks retail sales increased by 74 percent in January, 1997; 48 percent in September 1997 -- even when shoes were not included; and 77 percent for apparel and 66 percent for shoe stores this past January.

"I thank Mayor Giuliani for eliminating the City sales tax during the September 1st to 7th week," said Staten Island Borough President Guy V. Molinari. "Sales tax free weeks mean thousands of dollars in savings for Staten Islanders. I am particularly pleased to see that our fourth tax-free week comes at the height of the back-to-school shopping crunch. Staten Island's hardworking families deserve the break. And Staten Island store owners deserve the break, too, after years of losing business to stores in New Jersey."

City officials estimate that:

• the permanent elimination of the sales tax on items under $110, excluding shoes, is expected to create 13,200 jobs and $910 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; and

• 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. The success of these three tax-free weeks demonstrates that dropping the tax stimulates retail sales and will create jobs.