Tax Cybrary

Sales Tax State Activity Update
January 2005   

New York Offers One-Week Exemption on Certain Clothing

The New York Department of Taxation and Finance announced that a one-week sales and use exemption of clothing and footwear would take effect from January 31, 2005 through February 6, 2005. The exemption applies to clothing, footwear and items used to make or repair exempt clothing, costing less than $110 per item or pair.

The one-week exemption applies only to clothing and footwear worn by humans. It also applies to most fabric, thread, yarn, buttons, snaps, hooks, zippers, and like items, which become a physical component part of exempt clothing or that are used to make or repair exempt clothing. However, the exemption does not apply to all clothing and footwear items worn on the body.

It’s important to note that the exemption does not automatically apply to locally imposed sales and use taxes. Moreover, the exemption does not automatically alter the ¼% Metropolitan Commuter Transportation District (MCTD) tax imposed by the state either.

Special transitional provisions apply to the following items:

• Mail and telephone orders
• Layaway sales
• Custom and special orders
• Rain Checks
• Exchanges

Vendors selling exempt items during this one-week period must file a Schedule H for the locality in which the sales where made. The form will accompany all quarterly and annual returns. The Schedule H must also be filed with the quarterly or annual return.

You can view a detailed list of exempt and taxable items here.

(New York State Department of Taxation and Finance TSB-M-04(9)S, December 15, 2004) 1/05

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