For Immediate Release
May 15, 2003
New York – State, New York City Sales Tax Rate Increases, Clothing and Footwear Exemptions Among Tax Changes in 2003 Budget
Effective June 1, 2003 and June 4, 2003, New York State sales and use tax and New York City sales and use tax rates increased from 4% to 4.25 and 4.125%, respectively. The 6% city tax on parking, garaging, or storing motor vehicles did not increase.
Both rates are to revert back to 4% on June 1, 2005.
Effective June 1, 2003, all clothing, footwear and certain tangible personal property used to make or repair clothing and footwear are subject to state and local sales tax. However, effective June 1, 2004, clothing and footwear costing less than $110 per item of clothing, per pair of shoes or other article of footwear, or per item used to make or repair clothing and footwear will again be exempt. The reinstated exemption will not apply to county or city sales and use taxes or to the state MCTD tax, unless a law, ordinance or resolution providing for permanent year-round exemption was adopted by July 18, 2003.
Also included in the 2003 budget legislation was the requirement to add a use tax line on the New York personal income tax return for taxpayers to report and pay unpaid state and local use taxes on purchases made outside of New York state, whether in person or by means of the Internet or through mail order. This is a growing trend among states that impose a personal income tax.
If you would like additional information on this topic or have any questions, please contact James Privett, Regional Vice President - Sales & Use Tax Group at (615) 373-8373. E-mail jprivett@thesaltgroup.com
The HJH Consulting Group Plaza | 874 Harper Road | Suite 101 | Kerrville, Texas 78028 | 830.257.1290 | Fax 830.257.2138
©2001-2005 The SALT Group® - All
Rights Reserved
