Brooklyn's Progress
August/September 2005

Governor George E. Pataki joined New York City Mayor Michael R. Bloomberg and other state, local business and community officials recently to announce legislation that will eliminate New York City's 4 percent sales tax on clothing and footwear costing under $110 beginning Sept. 1.  The sales tax cut is a boost for Brooklyn clothiers.

The Brooklyn Chamber of Commerce, led by its Government Affairs Committee, had lobbied Albany for the re-instatement of the exemption, which began in 1995, but was tabled after 9-11.  “Our Brooklyn retailers benefit greatly from this tax cut, and it helps them compete with more tax-friendly places, like New Jersey.  Even with its limitations, this tax break will drive shoppers to our Members’ stores.  We know it works,” explained Kenneth Adams, President of the Brooklyn Chamber of Commerce.

"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," Governor Pataki said. 
 
Mayor Michael R. Bloomberg said "The reduction of the sales tax on clothing and footwear under $110 will be greatly appreciated by hardworking New Yorkers.  They deserve a break on this regressive tax and I am pleased that the Governor and our legislative leaders agree.”
 
Assembly Speaker Sheldon Silver, sponsor of the bill and the first to propose eliminating the sales tax in 1995 said, "New York's working families deserve a break, today and every day, when buying the clothing and shoes every family needs.  Today we're helping moms and dads buy jeans, dresses, coats, boots and gloves without breaking the family budget.  And we're encouraging New Yorkers to shop here, rather than across state lines, which means our local businesses ring up sales and our economy becomes stronger."

Linda Baran, President and CEO of the Staten Island Chamber of Commerce, stood with the Governor and the Mayor at the press conference on July 25 announcing the tax cut.  “Linda Baran and the Staten Island Chamber of Commerce deserve a lot of credit for getting this done.  Linda pushed this issue hard and never let up.  All of us gain from the Staten Island Chamber of Commerce’s advocacy on this central issue,” added Mr. Adams.

The new exemption will put New York City on a more competitive playing field with other out-of-state areas in the New York Metro region, such as Connecticut and New Jersey where clothing purchases under $50 are exempt from sales tax.

Since 1995, the State has held a series of sales tax-free weeks in New York City and throughout the state.  The sales tax-free weeks have saved New Yorkers hundreds of millions of dollars and increased business for local merchants.

This year's State Budget also authorized two one-week temporary exemption periods from all state (and participating localities') sales tax on clothing and footwear priced at under $110.  These two week periods will occur on Tues., Aug. 30, 2005 and ending on Labor Day, Mon., Sept. 5, 2005 and beginning on Mon., Jan. 30, 2006, and ending on Sun., Feb. 5, 2006.