Repeal of MTA Payroll Tax on 80% of Small Business and the Elimination of State Sales Tax on Clothing and Shoes
Senator Steve Saland (R, I, C - Poughkeepsie) today announced self-employed taxpayers and businesses with an annual payroll under $1.25 million, will finally be relieved of the MTA payroll tax on April 1st. In 2009, employers were unjustly saddled with this onerous tax which Senator Saland vehemently opposed.
The elimination of the payroll tax on 80% of businesses sends a clear message that the Senate Republican Majority who fought for its full repeal stands for tax relief.
“This tax has stifled job creation and caused an undue financial burden on taxpayers, particularly during a time that has been fiscally challenging,” stated Senator Saland. “I made a promise to our community that I would fight to eliminate this tax and while there is still work to be done to see it completely abolished, this reduction represents a critical first step.”
In addition, beginning April 1, 2012, items of clothing and footwear sold for less than $110 will be exempt from the state's 4% sales and use tax.
“The elimination of the 4% sales tax is good news for consumers and businesses,” stated Senator Saland. “The repeal of the state sales tax represents our commitment to reducing taxes throughout the State and is estimated to save New Yorkers $210 million and should generate additional revenue for businesses.”