Tax & Accounting Blog

New York Brings Back Sales Tax Exemption on Clothing. Sort of.

Indirect Tax, Sales and Use Tax March 22, 2011

In order to try and close the state’s budget gap New York lawmakers passed legislation last year that would partially reinstate the exemption from state sales tax on certain clothing. The exemption was for clothing and footwear costing less than $110 per item. Beginning on April 1st the exemption will be reinstated on clothing and footwear but only on items costing less than $55. That exemption will run until March 31, 2012. On April 1, 2012 the original exemption will be restored.

The New York Department of Taxation issued a memorandum last year that explains the temporary suspension of the exemption in more detail. New York Technical Service Bureau Memorandum TSB-M-10(16)S, 09/07/2010 is available on the Department’s website. Additional information is also available on this PAGE.