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Clothing & Shoes Tax Exempt

Courtesy of Ian Gaven, Getty Images.

The State’s sales tax on clothing is once again changing which could be good and/or bad.  Apparently, this is take two of a three-part plan by the State to close up the deficit by raising extra cash.   Take one was to eliminate the exemption completely, but that must not have gone over so well.

If you recall, the state removed their tax exemption on clothing and footwear under $110 in an effort to raise $330 million back in October.  They had anticipated raising $330 million by lifting that exemption.  However, it seems that maybe retail spending went down despite their efforts.

Courtesy of Ian Gaven, Getty Images.

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So the good news ladies, clothing and footwear under $55 will be state tax free beginning today,  April 1st.  And no, it’s not an April Fool’s prank.  However, county sales tax (typically four-percent) could still be applicable.  By April 1st, 2012, the final stage of the government’s plan will reinstate tax free clothing and footwear under $110 so that’s something to look forward to. From now until then, the state estimates it will earn $210 million from this plan.

As for online purchases or merchandise bought through a catalog, the tax on those orders will depend on the purchase date or when the vendor received the order.  More information can be found at www.tax.ny.gov. 

I don’t know about you, but in celebration of this tax change, the big snow storm missing us today and April Fool’s Day, I think I may just have to buy a new pair of shoes!  What about you?

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