Contact: Colleen Roche (212) 788-2958 or Deirdra L. Picou (212) 788-2971
Mayor Rudolph W. Giuliani today unveiled details of the administration's unprecedented campaign to promote New York City's participation in a one week, New York State-wide sales tax exemption experiment for clothing and footwear purchases under $500.00 during the week of January 18 through 24, 1997. Joining the Mayor in Staten Island were:
"Sales tax on clothing and footwear cost New York families, on average, over 200 dollars a year," Mayor Giuliani continued. "By lifting the tax for one week, and really increasing clothing sales, we can send a powerful message to Albany to eliminate this tax. I'm inviting you to get out there and shop at the first ever Fashion Capital of the World City-wide Clothing and Shoe Sale, January 18th through the 24th. Let's shop 'til they drop the tax."
Staten Island Borough President Guy Molinari said, "Recent studies show that sales tax rates in New York are one of the prime reasons our consumers head out-of-state to shop. Staten Islanders now spend $1-billion per year off-Island in retail purchases, and we need to bring our consumers back home by cutting the sales tax, particularly on clothing.
"I heartily endorse and applaud Mayor Rudy Giuliani for moving forward with his own initiative to cut the sales tax on clothing on the city level. I hope that the Sales Tax Free Week is a great success and an example of the economic gain New York stands to make from cutting the sales tax."
As a result of state and local actions, virtually all clothing and footwear purchases for less than $500 per article will be exempt from the combined 8.25 percent sales tax. The sales tax for one week exemption will apply to most clothing, footwear and other articles worn on the body. The exemption also applies to most fabrics, thread, yarn, buttons, zippers, and like items used or consumed in the making or repairing of exempt clothing, provided that the item become a physical component part of this clothing. Alterations to exempt clothing are likewise exempt during this one week period.
This past summer, at the recommendation of the Mayor, the Governor and State Legislature authorized a one week New York State sales tax exemption on clothing and footwear purchases to be in effect from January 18-24, 1997. With the City exercising its option to offer a one-week exemption of the local four percent sales tax on clothing purchases of less than $500 per article, consumers will be able to shop for clothing, footwear, and fabrics selling for less than $500 per item during the one week period established by state law.