Senate Bill S813

                                 BILL NUMBER:  S813

 TITLE OF BILL :
An act to amend the tax law, in relation to sales tax on clothing and
footwear in cities with a population of one million or more

 PURPOSE :
Relates to exempting clothing and footwear sold in New York City from
all sales taxes.

 SUMMARY OF PROVISIONS :
Section 1. Paragraph 30 of subsection (a) of section 1115 of the tax
law, as amended by section 84 of part A of chapter 56 of the laws of
1998, is amended to read as follows:

30) Clothing and footwear for which the receipt or consideration given
or contracted to be given is less than one hundred ten dollars per
article of clothing, per pair of shoes or other articles of footwear
or per item used or consumed to make or repair such clothing and which
becomes a physical component part of such clothing, provided, however,
that in a city with a population of one million or more all clothing
and footwear and items used or consumed to make or repair such
clothing and which becomes a physical component part of such clothing
regardless of cost shall be exempt from the taxes imposed under
section one thousand one hundred five and one thousand one hundred ten
of this article.
              

§ 2. Subdivision (a) of section 11-2006 of the administrative code of
the city of New York is amended by adding a new paragraph 16 to read
as follows:

(16) All clothing and footwear and items used or consumed to make or
repair such clothing and which become a physical component part of
such clothing.

 JUSTIFICATION :
Since we have an exemption up to $110 we ought to take the sales tax
off all items of clothing and shoes, thereby avoiding creative
retailing to bring sales under $110.

 LEGISLATIVE HISTORY :
2008:  S.6959 - Referred to Investigations/A.7581 - Referred to Ways &
Means
2007: A.7581 - Referred to Ways & Means
2006: A.5908 (Ignizio) Referred to Ways and Means.

 FISCAL IMPLICATIONS :
Undetermined.

 EFFECTIVE DATE :
This act shall take effect the first of January next succeeding the
date on which it shall have become a law.