NYC Sales Tax. New York has repealed the sales tax holiday on clothing costing less than $110, as of Oct. 1.

State legislators voted to repeal the exemption in August, effective the first week of October, to give parents a temporary reprieve during the back-to-school shopping season.

The repeal of the tax exemption means all purchases of clothing under $110 will cost four percent more between Oct. 1, 2010 and March 31, 2011.

The exemption will return for a full year beginning April 1, 2011, but will only apply to clothing purchases less than $55.

The tax exemption was originally implemented in 2006 to stop New Yorkers from traveling to New Jersey to shop, as the Garden State does not have such a tax.

The exemption's repeal was one of Gov. David Paterson's proposals included in the 2010-11 state budget to help close a $9.2 billion deficit, and is expected to generate an estimated $540 million


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