October 1 Marks the End of Tax-Free Shopping on Items Under $110

Jack Heinbaugh

Last night, the New York Assembly last night passed legislation to temporarily suspend the current tax exemption on clothing and shoes under $110 from October 1, 2010 through March 31, 2011. But it doesn't end there.

WWD has reported that according to the new legislation, the tax exemption would be reinstated on April 1, 2011, but at $55, not $110. The $110 exemption that currently stands in the state would not be fully reinstated until the following year, on April 1, 2012.

Bottom line: If you've been eyeing that pair of $99 jeans or $79 pair of sandals this summer, we'd advise snapping 'em up while they're still tax-free. Come October, you'll be paying an extra 8.875 percent if you live in the city, and 8.75 percent if you live outside city limits.

Considering how the retail industry in the city suffered during the recession (and the fact that the independent boutique scene really hasn't fully recovered), the decision is likely to draw ire from more than a few members of the local boutique community. That said, the fact that the sales tax rise is only temporary might at least provide some comfort.

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