April 16, 2012

New York Sales and Use Tax: Reminder Issued on Start of Exemption for Clothing and Footwear Costing Less Than $110

Related Service Tax & Business

New York Sales and Use Tax: Reminder Issued on Start of Exemption for Clothing and Footwear Costing Less Than $110 Tax & Business

On March 28, 2012, the New York Department of Taxation and Finance issued a notice reminding businesses and consumers that beginning April 1, 2012, items of clothing and footwear sold for less than $110 will be exempt from state sales and use tax (up to March 31, 2012, such items up to $55 were exempt).

The exemption is based on per item sold, and also applies to most fabric, thread, yarn, buttons, hooks, zippers, and similar items. The exemption does not apply to items of jewelry, watches and equipment, such as tool belts and hard hats, and for sport, bicycle and motorcycle helmets.

New York City, the city of Norwich and the following counties will also fully exempt eligible sales of less than $110 from local sales and use tax:

  • Chautauqua
  • Chenango
  • Columbia
  • Delaware
  • Greene
  • Hamilton
  • Madison (outside the City of Oneida)
  • Tioga
  • Wayne

For more information, see the Department of Taxation and Finance’s website at www.tax.ny.gov.