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File #: Res 1633-2000    Version: * Name: Tax Exemption, Clothing & Footwear less than $110
Type: Resolution Status: Filed
Committee: Committee on Finance
On agenda: 11/29/2000
Enactment date: Law number:
Title: Resolution urging the New York State Department of Taxation and Finance to promulgate regulations defining which items are excluded from the State and local sales and compensating use taxes under the recently enacted tax exemption provision on items of clothing and footwear of less than $110.
Sponsors: Peter F. Vallone, Herbert E. Berman, Karen Koslowitz, Adolfo Carrion, Noach Dear, June M. Eisland, Kathryn E. Freed, Stanley E. Michels, Michael C. Nelson, Philip Reed, Michael J. Abel, Stephen J. Fiala, Wendell Foster, Sheldon S. Leffler, Mary Pinkett, John D. Sabini, James S. Oddo
Council Member Sponsors: 17
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
12/31/2001*Peter F. Vallone City Council Filed (End of Session)  Action details Meeting details Not available
11/29/2000*Peter F. Vallone City Council Referred to Comm by Council  Action details Meeting details Not available
11/29/2000*Peter F. Vallone City Council Introduced by Council  Action details Meeting details Not available
Res. No. 1633 Title Resolution urging the New York State Department of Taxation and Finance to promulgate regulations defining which items are excluded from the State and local sales and compensating use taxes under the recently enacted tax exemption provision on items of clothing and footwear of less than $110. Body By the Speaker (Council Member Vallone), Council Members Berman, Koslowitz, Carrion, Dear, Eisland, Freed, Michels, Nelson, Reed, Abel and Fiala; also Council Members Foster, Leffler, Pinkett, Sabini and Oddo Whereas, In recent years the City Council and the Mayor have worked together to implement numerous temporary sales tax exemption weeks on clothing and footwear, pursuant to state authorization, which were popular among, and beneficial, to consumers and retailers alike; and Whereas, A permanent sales tax exemption on items of clothing and footwear of less than $110 was seen by the City Council and its other proponents as a means of providing year round tax relief to all New Yorkers and especially to low and middle income families who spend a disproportionate share of their income on clothing; and Whereas, A permanent sales tax exemption was also seen as placing retailers in New York on equal footing with businesses in surrounding states who were not required to charge sales taxes on clothing and footwear; and Whereas, The New York State Legislature passed and the Governor signed into law, a provision permanently exempting clothing, footwear and items used or consumed to make or repair clothing costing less than $110 from the 4% State sales and compensating use tax; and Whereas, The legislation that provides for the State sales tax exemption also permits counties and cities having a local sales tax to permanently exempt the purchases and uses of such clothing and footwear items from such local sales tax; and Whereas, On June 7, 1999, the City Council adopted Resolution No. 828 which lifted New York City's 4% local sales tax on these items; and Whereas, The City and State sales tax exemption took effect on March 1st of this year; and Whereas, The City Council's Office of Oversight and Investigation recently issued a report titled A Taxing Matter: The Improper Assessment of Sales Tax, which demonstrated that many large and small retailers in the City were still assessing sales tax on items which have been exempted by law; and Whereas, The assessment of the sales tax by these and other retailers denies consumers the tax benefit intended by law; now, therefore, be it Resolved, That the Council of the City of New York urges the New York State Department of Taxation and Finance to promulgate regulations defining which items are excluded from the State and local sales and compensating use taxes under the recently enacted tax exemption provision on items of clothing and footwear of less than $110. LS#3202 11/14/00