About four weeks ago, the 4% New York State sales tax for clothing & footwear items priced below $110 was reinstated. Yeah, that’s right shoppers. If you purchase a pair of jeans now for $85 in say New York City, you will have to pay $85+(4%+.375% metro tax) or $85+$3.71 for a total of $88.71. Previously this year there was no sales tax for this type of purchase. Now that we are entering the holiday season, it is important for both consumers in the New York State area and clothing/footwear merchants to understand this change.
The Details
Beginning October 1st, 2010, New York State repealed its 4% sales tax & .375% metro tax exemption for clothing & footwear items that cost less than $110. However, those local jurisdictions & cities that enacted a sales tax exemption for this type of purchase in the past will remain in effect. This means that New York City clothing purchases under $110 will remain exempt from the 4.5% local tax. If it is more than $110 per item or pair, then the purchase will be subject to the full state & local tax of 8.875% (4%+4.5%+.375%). Below, we have provided an interactive table for you to review the current sales tax in your county for clothing & footwear goods under $110. All counties with sales taxes in the 4% range are ones in which the local tax remains exempt.
What Does This Mean For Shoppers?
New York State shoppers that are purchasing $110 or less on clothing or footwear items will be subject to a 4% state sales tax rate. For jurisdictions in which the local sales tax remains in effect (i.e. New York City), make sure that merchants are just charging you state sales tax for purchases under $110. If you purchased an item prior to October 1st and returned it after October 1st, make sure the merchant does not include the additional sales tax for the change. You are not liable for it in exchange situations around those dates.
What Does This Mean For Merchants?
Merchants better update their billing & bookkeeping applications to account for this change if they haven’t already done so. They can potentially run into significant issues for collecting the wrong amount of state or local sales tax from their customers.
Most of even the most basic payment & bookkeeping applications allow merchants to implement rules to account for purchases at different prices & dates. Contact your provider immediately for instructions on how to make this change.
New York Sales & Use Tax Rates On Clothing and Footwear
| Tax Jurisdiction (County) | Tax Rate |
|---|---|
| Albany | 8% |
| Allegany | 8.5% |
| Broome | 4% |
| Cattaraugus | 8% |
| Cayuga | 8% |
| Chautauqua | 4% |
| Chemung | 8% |
| Chenango | 4% |
| Clinton | 8% |
| Columbia | 4% |
| Cortland | 8% |
| Delaware | 4% |
| Dutchess | 8.125% |
| Erie | 8.75% |
| Essex | 7.75% |
| Franklin | 8% |
| Fulton | 8% |
| Genesee | 8% |
| Greene | 4% |
| Hamilton | 4% |
| Herkimer | 8.25% |
| Jefferson | 7.75% |
| Lewis | 7.75% |
| Livingston | 8% |
| Madison | 4% |
| Monroe | 8% |
| Montgomery | 8% |
| Nassau | 8.625% |
| New York City | 4.375% |
| Niagara | 8% |
| Oneida City (Madison County) | 6% |
| Oneida | 8.75% |
| Onondaga | 8% |
| Ontario | 7.5% |
| Orange | 8.125% |
| Orleans | 8% |
| Oswego | 8% |
| Otsego | 8% |
| Putnam | 8.375% |
| Rensselaer | 8% |
| Rockland | 8.375% |
| St. Lawrence | 7% |
| Saratoga | 7% |
| Schenectady | 8% |
| Schoharie | 8% |
| Schuyler | 4% |
| Seneca | 8% |
| Steuben | 8% |
| Suffolk | 8.625% |
| Sullivan | 8% |
| Tioga | 4% |
| Tompkins | 8% |
| Ulster | 8% |
| Warren | 7% |
| Westchester | 7.375% |
| Mount Vernon | 8.375% |
| New Rochelle | 8.375% |
| White Plains | 8.375% |
| Yonkers | 8.375% |
| Wayne | 4% |
| Wyoming | 8% |
| Yates | 8% |
More Sales Tax Questions?
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