MAYOR GIULIANI ANNOUNCES NEW YORKERS CAN SHOP TAX-FREE FOR BACK TO SCHOOL CLOTHES SEPTEMBER 1-7 SALES TAX EXEMPTION EXTENDS TO ALL CLOTHES UNDER $100
-- Elimination Of Tax Is Victory For All New Yorkers --
Mayor Rudolph W. Giuliani announced today that the sales tax on clothing purchases under $100 per article will be suspended during the week of September 1 through 7, 1997, just in time for the start of the school year. The Mayor made the announcement following his Administration's recent success in Albany in its efforts to permanently eliminate the sales tax on clothing. Also joining the Mayor at the Manhattan Mall were Deputy Mayor Rudy Washington, and Doris Modell and Jack Perlman of Modell's Sporting Goods.
"I'm very excited today to announce that from September 1 to 7, all of New York City will be having a back to school sale," said Mayor Giuliani. "Beginning Monday, September 1st, all clothing purchases under $100 will be tax-free. As families get ready to send their children back to school, they will be able to buy clothes without this burdensome, regressive sales tax. I know that New Yorkers all over the City will take advantage of this opportunity and once again prove that elimination of the sales tax on clothing benefits businesses, consumers and the City's economy.
"Traditionally this sales tax hits poor families hardest, because they spend a large percentage of their incomes -- sometimes as high as 12 percent -- on clothes. As a result of our efforts in Albany, this sales tax exempt week will occur again next year and will become permanent on December 1, 1999, when the sales tax on clothing costing less than $100 will be eliminated completely." the Mayor concluded.
President of Economic Development Corporation Charles Millard said, "New York City loses an estimated $700 million a year in clothing sales to New Jersey, and a total of $3.5 billion on all purchases. Once the sales tax is permanently eliminated it is estimated that retail sales will increase by $570 million while the total output of New York City's economy will increase $760 million. In addition, new retail jobs will increase by 6,800 while total jobs will increase by 11,000."
This year, at the urging of the Mayor, the Governor and State Legislature passed legislation that will permanently eliminate the sales tax on clothing purchases under $100 effective December 1, 1999. Prior to this date the City will exercise its option to offer a one-week exemption of the sales tax on clothing purchases of less than $100 per article.
Virtually all clothing purchases for less than $100 per article will be exempt from New York State's four percent sales and use taxes, the 1/4 percent Metropolitan Transportation Authority (MTA) tax, and New York City's four percent sales tax. The exemption applies to most clothing articles worn on the body. The exemption also applies to most fabric, thread, yarn, buttons, zippers and like items used or consumed in making or repairing exempt clothing, provided that the item becomes a physical component part of this clothing. Alterations to exempt clothing are likewise exempt during this one week period. The new one week exemption only applies to purchases of clothing and does not apply to footwear.
Most accessories (jewelry and watches) remain taxable though worn on the body. Additionally, equipment, such as helmets, tool belts, and baseball gloves (sporting or otherwise) remains subject to tax.
Consumers and retailers can receive further information on the Back To School Sales Tax Exemption Week by calling the Mayor's Action Line at 212-788-9600, or they can download information from NYC.gov, the official New York City government website, at http://www.ci.nyc.ny.us and access the Department of Finance homepage. On Monday, August 11, consumers and retailers can download the information directly from http://www.ci.nyc.ny.us/salestaxfree. Consumers and retailers can also obtain information via fax by calling Tax Fax at 718-935-6114 from the phone connected to their fax machine or modem and entering 825 after listening to the audio instructions.
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