New York State to Reinstate Tax Exemption for Shoes and Clothing Consumption Taxes

The State of New York will soon resume tax exemption on apparel and footwear excise duties, but New York State will reduce its price range to half of the previous tax exemption rules for clothing and footwear eligible for tax exemption.

The sales tax exemption will resume from April 1, 2011. After April 1, the price of apparel and footwear products sold will be less than US$ 55 and will no longer be subject to a sales tax of 4%.

Items used to prepare or repair clothing or footwear are also eligible for sales tax exemptions.

According to the previous exemption, the cost of clothing and footwear sold was less than $110 before the tax exemption. However, in order to offset the New York State budget deficit, the legislator stopped the sales tax exemption on October 1 last year.

In addition to the 4% sales tax, the State of New York has also ceased to impose a special sales tax of 0.375% for Nassau County, Orange County, Suffolk County, New York City, Taxes on apparel and footwear sold in Long Island (Land Island), Dutchess, Putnam, and Westchester on the northern outskirts of the city.