Wednesday, September 22, 2010

Sales Tax - Bad News, Good News

The exemption from New York State sales tax for clothing and footwear under $110 has been eliminated, for the period October 1, 2010, through March 31, 2011. Beginning October 1, 2010, clothing and footwear costing less than $110 will be subject to the 4% New York State sales and use tax and, if applicable, the ⅜% tax in the Metropolitan Commuter Transportation District (MCTD) downstate. Local sales tax rates are not affected. This means:

For jurisdictions that did not enact an exemption from the local sales tax, all sales of clothing and footwear are subject to the full state and local sales tax.

For jurisdictions that provided for this exemption, only the New York State tax (and MCTD tax, if applicable) will be charged. These counties: Broome, Chautauqua, Chenango, Columbia, Delaware, Greene, Hamilton, Madison, Schuyler, Tioga County, Wayne will charge only the 4% state sales tax. New York City businesses will charge 4⅜% (the combined state tax and MCTD rate).
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The Office of the Taxpayer Rights Advocate, an independent organization within the New York State Tax Department, is committed to helping New York State taxpayers by balancing taxpayer assistance against enforcement efforts.
This office:
-Provides free and independent assistance to taxpayers -Assists taxpayers whose tax problems are causing undue economic harm -Helps taxpayers who have been unable to resolve protracted tax problems through normal channels

If you need help, you are invited to use the new online service, Request for Assistance from the Office of the Taxpayer Rights Advocate.

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