As of Saturday, New York City shoppers got a break: they no longer have to pay city sales tax on clothes and shoes.
Mayor Bloomberg proposed sales tax relief in June and it went into effect on September 1 – just in time for the Labor Day shopping weekend. The measure eliminates a 4% city tax on clothes and shoes. Shoppers still have to pay a 4.375% state sales tax for items costing $110 or more. But no one is complaining.
Let me demonstrate what this means to you and me.
Let’s say I want to buy a BCBG print dress (not to those of you wondering what to do for my birthday: on sale at Macy’s). No sales tax means this dress is now a steal at just… $99.00! You save $3.96 in city sales taxes and you don’t pay the state sales tax (since it’s under $110). Ok, in print it doesn’t look all that great. But just imagine if you bought me ten such dresses. Now you’re talking tax savings.
Or…
If I (or someone I love) were to splurge on a pair of Jimmy Choo shoes, the savings would be almost $30.
So, the more you spend, the more you save. Wait a minute… You don’t think Mayor Bloomberg thought…? Naah.
