State Budget Includes “Death Of A Sales Tax”

Jeffrey D. Klein

March 31, 2006

 “The state sales tax is truly the dinosaur of our state’s finances and it’s long past time to give hard-working families the help they need by eliminating this regressive tax,” Klein said.  “New York’s consumers will prosper from this tax cut, as will New York’s businesses who for too long have been losing business to neighboring states that do not charge a sales tax on these purchases.” 


April 1, 2006, but Governor Pataki’s proposed budget for this year did not include the elimination.  The Legislature successfully fought for restoration of this provision, which waives New York State’s 4.375% sales tax on clothing, footwear, clothing material, hats, neckwear and diapers totaling under $110 and gives local municipalities the option to waive their portion of the sales tax as well.