Top > Business > 2006 > January > 2006-01-30

Tax-Free Shopping Manhattan Style

Nothing increases retail business then allowing customers to get great discounts. New York City, who has lost customers to New Jerseys tax free retail shopping, understands this better than anyone. This is why the state has decided to eliminate taxes for one week. It is yet another reason to love New York. The state?s last free-week on certain clothing purchases begins on Monday. Beginning next week, the state will lift its four-percent tax on clothing sales and footwear costing less than $110 per item.

Many counties and cities also lift their local sales tax for the week, which has been repeated in early September in previous years. The suspension will save shoppers an estimated $70 million, said state Taxation and Finance Department spokesman Thomas Bergin. Fifty-two counties and 17 cities will participate in this one-week exemption. New York City has already eliminated its local share permanently.
Under a law passed last year by legislators in Albany, statewide tax-free weeks may become history on April first -- the deadline for a state budget. On April first, the state`s four-percent tax on clothing purchases is scheduled to be permanently eliminated.But Governor Pataki`s is proposing to keep the state`s four-percent tax in place and go back to having two tax-free weeks a year, with the minimum for exempted items raising to $250.