Contact: Sunny Mindel/Curt Ritter (212) 788-2958
Bernadette O'Leary (212) 312-3523 (EDC)
Mayor Rudolph W. Giuliani today announced that during the City's sixth Sales Tax-Free Week, September 1st through September 7th, the 8.25 percent sales tax on clothing and footwear items under $500 will be eliminated throughout the City. The Mayor also announced a second Sales Tax-Free Week from January 15th through January 21st, 2000.
"This is a great way for New York City families to start the new school year," said Mayor Giuliani. "Each year The Shopping Capital of The World loses more than $700 million in retail sales because New York taxes shoes and clothing while New Jersey doesn't. During our previous sales tax-free shopping weeks, retail sales increased by 48 to 77 percent and the success of these tax-free weeks demonstrates that dropping the tax stimulates retail sales and creates jobs.
During last September's tax-free week, the New York City Economic Development Corporation (EDC) conducted a telephone poll throughout the City's five boroughs to gauge the effect of tax-free shopping. Merchants were overwhelmingly positive and enthusiastic, and reported significant increases in sales and customer traffic.
On March 1, 2000, New York State will permanently eliminate the State's 4% and the Metropolitan Transit Authority's .25% sales tax on clothing and shoes priced under $110. Local municipalities, including New York City, will have the option of eliminating their portion of the sales tax; in New York City, this will result in an 8.25 percent saving for consumers.
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 were 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.