Avalara Taxrates > Blog > Sales Tax News > New York, Clothing, Sales Tax Exemption – It’s Baaaa-aack! - Avalara

New York, Clothing, Sales Tax Exemption – It’s Baaaa-aack!

  • Mar 30, 2012 | Susan McLain

Back in February we blogged on New York’s process of gradually phasing the clothing exemption back into play. Watching the sales tax tweets, it’s an exciting topic this week!

The Ithaca Journal reports that, “[t]he state levied a full sales tax of 4 percent from October 2010 to March 2011 to raise revenue amid its fiscal woes. The state made $330 million during the period.” Most counties and many cities also levy their own tax rates on purchases of clothing—some joined the moratorium, others continued to levy the local sales tax during this time.

What do businesses have to say? The Journal quotes Beth Madsen, owner of Elizabeth Boutique in Poughkeepsie as saying, "I don't think it's been a big difference." And some businesses feel consumers aren’t even aware of the exemption.

However, “[t]he Retail Council of New York State, a trade association that represents state retailers, said promotion of the exemptions could help clothing stores compete with neighboring states.” In addition to an exemption from the state sales tax, Melissa Googas, assistant director of government relations at the Retail Council feels if counties participated, then “[t]he savings, we believe, would resonate better with customers…and retailers would not be forced to compete with the neighboring states who have better sales tax policies.”




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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.”