2012-04-04 / Business

State sales tax exemption expanded

Clothing and footwear items sold for less than $110 is now exempt from the 4 percent state sales tax. Prior to the change, which went into effect on April 1, the exemption applied only to items sold for less than $55.

The expanded state sales tax exemption will save New Yorkers a total of $220 million,” according to Sen. Michael H. Ranzenhofer, R-Clarence.

“Now, families and residents will notice a few extra dollars being returned to their pockets the next time they go to the store for clothes or shoes,” Ranzenhofer said.

The total sales tax on clothing and footwear items sold for less than $110 will be 4.75 percent in Erie County and 4 percent in Genesee County after the expanded exemption goes into effect.

The 2010-11 state budget completely eliminated the state sales tax exemption. Ranzenhofer said he opposed the elimination.

The sales tax increase was in effect from Oct. 1, 2010, until April 1 of last year, when the current exemption for items sold for less than $55 was reinstated.

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