Effective April 1, 2011, clothing and footwear sold for less than $55 will be exempt from New York’s state sales and use tax (4%) and the state-imposed Metropolitan Commuter Transportation District (MCTD) sales tax (0.375%).
Counties and cities may elect to exempt clothing and footwear sold for less than $110, or exempt these items when sold for less than $55, or not exempt these items from local sales and use tax. New York’s Publication 718-C, Sales and Use Tax Rates on Clothing and Footwear, lists New York cities and counties that impose sales and use tax and the applicable local sales tax rates for sales of clothing and footwear.
The exemption is limited to clothing and footwear for humans (not pets) and includes fabric, thread, yarn, buttons, snaps, hooks, and zippers used to make or repair clothing. The exemption does not include costumes, rentals, and fabric or fasteners made of real or imitation pearls, precious or semi-precious stones, jewels, or metals.
On April 1, 2012, the exemption is scheduled to apply to clothing, footwear, and items used to make or repair clothing sold for less than $110.
TECHNICAL INFORMATION CONTACT:
Jeremiah T. Lynch
Principal
Ryan
212.871.3901
jeremiah.lynch@ryan.com
New York Sales Tax Exemption for Clothing Changes Effective April 1, 2011
Tax Development Apr 06, 2011