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Sales Tax Exemption Returns to Shoppers' Delight

By DNAinfo Staff on April 1, 2012 2:43pm

By Paul Lomax and Tom Liddy

DNAinfo Reporters

MANHATTAN — It may be April Fool's Day, but this isn't a joke.

State Assembly Speaker Sheldon Silver announced the return of a state sales tax break on low-priced clothes and shoes Sunday.

The exemption, on items that cost less than $110, means a 4 percent break for shoppers starting April 1.

"I'm really enjoying the shopping after a busy conference," said Linda Andresen, 40, a research executive from Denmark, who was browsing the jewelry section at Century 21 in Lower Manhattan.

"I think this tax initiative is a great idea, not just for New York City but for the global economy. I'm trying to spend as much as I can."

And Carole Sinclair, 64, who has worked at Century 21 for 11 years, said that the tax break should provide a bump in business.

"It's always busy here," she said. "Now we hope it's going to be busier with this tax break."

The sales tax break on clothes priced under $110 was implemented on March 31, 2010, but was rolled back in October of that year to help close a budget shortfall.

In March 2011, the break returned, but only on purchases up to $55, according to Bloomberg News.

"We're in the tie section for a reason," said Silver, a tie aficionado and frequent customer at Century 21. "Today's slogan is shop 'til you drop."

The exemption does not apply to watches and other jewelry and costumes, Bloomberg News said.

Purchases less than $110 are already exempt from the city's sales tax.