Remember the good old days when clothing and footwear purchases in NYC were completely tax exempt for items under $110.00?
Well, beginning on April 1, 2012 you can expect these rules to be reinstated.
“The exemption applies only to clothing and footwear worn by humans,” according to the New York State Department of Taxation and Finance’s most recent tax publication. “It also applies to most fabric, thread, yarn, buttons, snaps, hooks, zippers and similar items that become a physical component part of exempt clothing, or that are used to make or repair exempt clothing.”
If you are a business owner that collects sales tax, please make sure you adjust your system to reflect the new exemptions that begin on April 1st.
If you are a consumer, make sure to check your receipts to ensure that you are not being taxed on your exempt purchases.