Was anyone else aware that effective August 1, 2009 New York City sales tax went up to 4.5% and there is no longer the repealed city tax for clothing over $110?!? What the? Why the?
I was just doing SB quarterly sales taxes and didn’t find out ’til about now. I guess the city needs money. But I wonder if this will curb purchases even more, and only push New Yorkers to shop online at places that where they won’t get charged tax.
And I guess I should be paying more attention to my receipts!
Quoted from NYSTAX.GOV:
Sales Tax Law Changes in New York City – Effective August 1, 2009
Chapter 200 of the Laws of 2009 amended the Tax Law and the Administrative Code of the City of New York as follows, effective August 1, 2009:
(1) New York City local sales and use tax rate is increased to 4½% As a result of this change, the combined state and local sales and use tax rate imposed in New York City is increased to 8.875% effective August 1, 2009. This rate includes the 4% state tax, the 0.375% Metropolitan Commuter Transportation District (MCTD) tax, and the 4½% New York City local tax.
(2) New York City’s local exemption for clothing and footwear costing $110 or more is repealed. The exemption from New York City’s local tax for clothing and footwear regardless of the cost is repealed, and New York City will conform to the New York State exemption for clothing and footwear costing less than $110 per item or pair. As of August 1, 2009, purchases of clothing and footwear costing $110 or more per item or pair in New York City are subject to the full 8.875% rate of tax. Purchases costing less than $110 remain fully exempt.
So if you didn’t know people, now you know. The law of the land has been laid. Tea anyone?