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New York Clothing Exemption Soon To Be Restored


Recently the Recovering Accountant helped us to understand about thresholds and caps in the state of New York. In 2010, the New York state implemented some clothing and footwear sales tax exemption changes. From October 1, 2010 through March 31, 2011, clothing and footwear were taxable for the state and the Metropolitan Commuter Transportation District (MCTD) tax.

Picking up where that left, off, from April 1, 2011 through March 31, 2012, “…clothing and footwear sold for less than $55 per item or pair will be exempt from the state’s 4% sales tax and the state-imposed 3/8% sales tax in the MCTD.” (Italics added for emphasis--this is different than the normal exemption in the state of New York.)

But this April 1, 2012 (no foolin’), “…the original less-than-$110-per-item clothing and footwear exemption will be restored.” (Italics added for emphasis.)

During these time periods, the local jurisdictions had the option to impose their local taxes or not. With a county-by-county and city-by-city option to impose the tax or not, it would seem to be an even greater nightmare to manage sales tax rates and their application if you are a business with more than one location or with a sales tax collection responsibility in the state of New York.

But New York residents can now look forward to a return of the “norm” for sales tax clothing exemptions.

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”