New York to exempt clothing, footwear from sales tax

Beginning Sept. 1, clothing and footwear costing less than $110 in New York will be exempt from the city's 4 percent sales tax. The announcement was made last week by New York Governor George E. Pataki, New York City Mayor Michael R. Bloomberg and other officials. The decision follows 10 years of series of sales tax-free weekends in the city and throughout the state. Once the exemption is made permanent, the city will be on a more competitive playing field with areas such as Connecticut and New Jersey, where clothing costing less than $50 is exempt from sales tax. "By exempting the city's sales tax on clothing and footwear purchases, we will give a tremendous boost to New York City's retailers and provide a great opportunity for working families to save more of their hard-earned money at the check-out counter," said Gov. Pataki in a statement.