Contact: Colleen Roche/Curt Ritter (212) 788-2958
Bernadette O'Leary (212) 312-3523 (EDC)
"The new year is off to a great start as the City and the State provides shoppers with another opportunity to save money," said Mayor Giuliani. "And the continued success of these tax-free shopping weeks sends a message to Albany that should not be ignored --dropping the sales tax on all apparel and footwear stimulates sales and generates valuable jobs for New Yorkers."
In January 1998, the No-Sales-Tax Week spurred retail sales to a 77 percent increase over a typical week in January. Last September, merchants surveyed by the New York City Economic Development Corporation (EDC) reported average sales increases of 71 percent, compared to an average September back-to-school shopping week. EDC is the City's primary vehicle for economic development services.
"These sales tax-free weeks encourage New Yorkers to get out and shop," the Mayor continued. "Every year, merchants in all five boroughs lose $700 million in retail sales because New York taxes shoes and clothing and New Jersey doesn't. I hope all New Yorkers will take advantage of this sales tax-free shopping week and shop until Albany drops the sales tax on all clothing and footwear forever."
In December 1999, New York State will permanently eliminate the State's 4% and the Metropolitan Transit Authority's ¼ % sales tax on clothing and shoes priced under $110. Local municipalities, including New York City, will have the option of eliminating their sales tax at the same time. In New York City, this will result in an 8.25 percent saving for consumers.
Staten Island Borough President Molinari said, "I join Mayor Giuliani in encouraging all New Yorkers to shop locally this week. By shopping in New York City, New Yorkers can send a message to Albany that this tax should be eliminated completely."
The permanent elimination of the sales tax on items under $110 is expected to generate $910 million in direct and indirect spending in the City and create an additional 13,200 jobs. If the sales tax was eliminated on clothing and shoes less than $500, it is estimated that 17,400 jobs would be created and an additional $1.2 billion in direct and indirect spending would be generated. Total elimination of the tax on all clothing and footwear purchases, as endorsed by Mayor Giuliani, would generate $1.4 million in increased revenue for the City and create 19,600 jobs for New Yorkers.
"This is an ideal time for another tax-free-shopping week," said EDC President Charles Millard. "Coming on the heels of a record-setting holiday shopping season when New York City merchants and retailers rang up sales increases of 3.8 percent compared to increases of 1.9 percent recorded nationally. New Yorkers will no doubt keep up the momentum and shop till the sales tax is eliminated on all clothing and footwear."