Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Saturday, September 4, 1999

Release #343-99

Contact: Sunny Mindel/Curt Ritter (212) 788-2958
Bernadette O'Leary (212) 312-3523 (EDC)


MAYOR GIULIANI SHOPS DURING BACK-TO-SCHOOL SALES TAX-FREE WEEK

8.25 % Sales Tax Will Be Eliminated On Clothing And Shoes Under $500 Through September 7th

Mayor Rudolph W. Giuliani today continued to take advantage of the City's sixth Sales Tax-Free Week, which runs through Tuesday, September 7th, while shopping at Century 21 in Lower Manhattan this morning. Since September 1st, the 8.25 percent sales tax on clothing and footwear items under $500 has been eliminated throughout the City.

"Once again New Yorkers have overwhelmingly responded to the City's Sales Tax-Free Week," said Mayor Giuliani. "Just before school starts next week New York families are taking advantage of the savings by shopping at their favorite stores throughout the City. On Friday the City's Economic Development Corporation conducted a telephone survey throughout the City, to gauge the effect of tax-free shopping, and found merchants overwhelmingly enthusiastic, with reports of significant increases in customer traffic and sales.

"Each year New York City loses more than $700 million in retail sales because New York taxes shoes and clothing, while New Jersey doesn't," the Mayor continued. "New Yorkers who fail to take advantage of this Sales Tax-Free Week should remember that next January 15th through January 21st the City will have another Sales Tax-Free Week. And beginning March 1 the sales tax on clothing and shoe purchases under $110 will be permanently eliminated."

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 clothing items and shoes 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 on clothing and shoes less than $500 were eliminated, it is estimated that 17,400 jobs would be created and an additional $1.2 billion in direct and indirect spending would be generated.

Comments from the telephone survey conducted by the New York City Economic Development Corporation included:

MANHATTAN
Moe Ginsburg, Alan Horowitz, Manager
"We have always been a full supporter of Rudy Giuliani and his efforts to keep New York the place, and New Yorkers shopping where they should be all along. To remove the sales tax is just another thing Giuliani has been doing and we support him 1,000 percent!"

Maraolo, George Carras, Chief Financial Officer
"We believe it is a very positive move by the Mayor and the State. It will keep business here rather than in New Jersey."

Motherhood Maternity, Nilsa Guzman, Manager
"Fantastic, I am very content and happy--sales are up 55% in only the last couple of days. It's been crazy in here. The mall is usually very dead, but now it's crowded."

Louis Chock, Inc., Hillard Zell, Owner
"It's going very well! I just had a customer who bought some merchandise, and we told her about the no sales tax and she bought three times as much!"

Harry's Shoes, Bill Rude, Owner
"We are delighted with the results, as we have been in the past. "

Liana, Liana Pai, Manager
"It's been very good. People definitely like the tax-free week. The timing makes people more apt to buy."

Quicksilver, Steve Molnar, Assistant Manager
"The day it started business picked up 20%. The store instantly jammed!"

Classique Shoes, Elaine Herscovici, Owner
"Love it! We have good success with it."

Athlete's Foot, Kevin Brandofino, Co-owner
"Out of the roof! We see a whole new clientele that usually go to New Jersey. This is a whole new marketplace. People are coming in to buy for the next two months. Impulse buyers are taking advantage of the added discount."

STATEN ISLAND

Rosemarie's Place, Rosemarie Formica, Owner
"Thank God, thank God! It keeps people from going to New Jersey."

JC Penny, Jess Stoop, Store Manager
"It continues to be a success. An obviously dramatic amount of traffic is

coming to the store." BROOKLYN

Kids R Us (Atlantic Center), Pat Valdez, Manager
"Lovely--especially for this neighborhood! Business has picked up, and not having the tax is a special perk.

Mangos, Cindy Greig, Owner
"Every year this has been going on, everyone seems to take part in it! People prepare for it, people genuinely like not paying taxes! The sales have been very busy here."

Youngworld Stores, Haime Chera, Accountant
"Make it permanent earlier!"

BRONX

Carousel Shoe Shoppe, Al Romano, Partner/Proprietor
"It definitely increases sales!"

Casual Male, Anthony Chatman, Manager
"8.25% makes a big difference! You see many more shoppers. Business is much better when it is tax-free."

QUEENS

Dr. Jay's, Manager
"Tax-free week is always a good week! Anything that saves people money is good news."

VIM, Siraj Butt, Manager
"People are getting a lot of benefits. It is mostly students and early winter shoppers. They enjoy shopping tax free."

Cookies, John Franco, General Manager
"We are very busy, it is jammed!"

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