BILL NUMBER: S5465
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing municipalities
to adopt a sales tax exemption for clothing and footwear after March
first; and providing for the repeal of such provisions upon expiration
thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would amend the tax law to authorize municipalities to adopt
local legislation to provide an exemption for the collection of local
sales taxes for clothing and footwear that cost less than $110 per item
or per pair by August 1 of the current year. Currently, the law only
allows municipalities to adopt such local legislation on March 1 of each
year. New York State adopted legislation exempting clothing and footwear
that cost less than $110 per item or pair from state sales taxes in
2006.
 
SUMMARY OF PROVISIONS:
Sections one amends subdivision (d) of section 1210 of the tax law to
allow for municipalities to adopt local legislation exempting clothing
and footwear that cost less than $110 per item or pair from state sales
taxes by August 1 of the current year.
Section two contains a severability clause. Section three provides the
effective date.
 
JUSTIFICATION:
New York State residents know too well the affects the COVID-19 pandem-
ics has had on their lives, impacting their health and the health of
their families, schooling, employment, businesses, and day-to-today
activities. As New Yorkers strive for normalcy in their lives, pandem-
ic-related supply chain issues continue to drive up the costs of fuels
and materials throughout the country. Additionally, Russia's invasion of
Ukraine on February 24, 2022 exacerbated these supply chain issues.
In the state budget, Governor Hochul and the legislature suspended the
collection of fuel sales taxes to combat rising costs. Following the
state's example, many municipalities followed suit. Many municipalities
can and want to do more to help the residents they serve. Benefitting
from additional state and federal funding and strong sales tax revenues,
local governments can temporarily decrease the cost of living for its
constituents by exempting certain clothing and footwear items from local
sales taxes. However, the current law severely limits local leaders'
abilities to adopt such policies, as the current statute only allows
municipalities to pass laws providing for such an exemption on March 1
of every year. During the winter months of January and February, local
governments were tirelessly managing the latest Omicron surge and should
not be penalized for putting the health and safety of their residents
first.
Now, the State Legislature has the opportunity to empower municipalities
to adopt this exemption before the new school year begins, lowering the
costs of items such as sneakers, jackets, diapers, eyeglasses, sports
uniforms, and school clothes.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S.419 (Thomas) / no same as
2021-22: S.9328 (Thomas) / A.10640 (Griffin) - Passed Senate.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state. Individual municipalities will have to perform their
own fiscal reviews when considering the clothing and footwear exemption.
 
EFFECTIVE DATE:
Immediate.

Statutes affected:
S5465: 1210 tax law