After several years of lobbying on the issue, Brooklyn Chamber of Commerce Members were pleased to finally witness the elimination of New York State’s portion of sales tax on clothing and footwear under $110. 

Members of the Chamber’s Government Affairs Committee recently met with each of the borough’s 30 legislators to lobby for the elimination of the state’s portion of tax on clothing and footwear under $110 and many other issues. The elimination of this regressive tax, effective April 1, is a boost to Brooklyn retailers who often struggle in a high cost environment to remain competitive.

In September 2005, New York City eliminated its portion of the sales tax (4%) on clothing and footwear purchases under $110; only the state's portion (4.375%) remained.

While the tariff was due to sunset this year, the budget proposed by Governor Pataki earlier this year would have retained the sales tax. The Assembly’s move to cut the state’s portion of the tax will help spur the state’s economy by encouraging New Yorkers to shop locally.  

“We are grateful to Assembly Speaker Sheldon Silver and Brooklyn’s delegation for making the repeal of the sales tax on clothing a part of this year’s budget,” explained Kenneth Adams, President, Brooklyn Chamber of Commerce. “We needed to get rid of this tax and they did it. It’s a definite shot in the arm for Brooklyn retailers.”

It is estimated New York loses about $600 million in sales each year to New Jersey, Connecticut and Pennsylvania where there is no sales tax on clothing. The elimination of the 4.375% charge levied by the state on certain purchases under $110 will mean a boost for businesses.

In 1998 New York State began experimenting with tax-free weeks. The initiative became a success and in fiscal year 2000 the levy was permanently eliminated. The tax was reintroduced after the September 11th terrorist attacks that sent New York’s economy into a tailspin. When it was most needed businesses and consumers pitched in to help the city’s economic recovery.  The Governor’s quest to extend the tax was met with loud opposition by local officials and the business community including the Brooklyn Chamber of Commerce.

Brooklyn Chamber Members thank their legislators for listening to their concerns and acting to meet the needs of New York, its business community and hard working New Yorkers.