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What is the rationale for that? I'm guessimg that it's not a progressive tax rate.Minor gripe for New Yorkers: Mr. P doesn't consider the subtotal post-20% discount for tax purposes, but the subtotal prior to this discount. Hence items that would fall below the $110 threshold for city residents are nonetheless taxed.
What is the rationale for that? I'm guessimg that it's not a progressive tax rate.
The current tax exemption on clothing and footwear has not been adjusted
since 1998, nearly twenty five years ago, when it was set at one hundred
and ten dollars. Due to the increase in costs to produce these items, as
well as the recent jump in inflation, this number should be adjusted to
two hundred and fifty dollars to help our businesses and encourage
purchases of these products here in NYS. There is currently no tax on
clothing or footwear in Pennsylvania, putting our business and residents
at a significant disadvantage.
Also neighboring New Jersey has no tax on clothing so they were losing sales.I always assumed it was because clothing is an essential item, to minimize the cost to lower-income families, similar to how non-prepared foods are tax-free in a lot of states.
Maybe also a little bit of NYC tourism incentivization too, since it's both NYS & NYC sales tax that are exempt, but I couldn't find much evidence for the original purpose of the legislation.
A legislator tried to increase it recently, and here's what they said: