As a new school year approaches, the New York State Department of Taxation and Finance reminds students and parents about money-saving tax breaks on purchases of certain clothing and footwear, and on course textbooks for college students.
“New Yorkers can enjoy substantial savings year-round with this program,” New York State Commissioner of Taxation Finance Jerry Boone said. “Whether you’re buying clothes for school or purchasing textbooks for the upcoming semester, New York State is helping to make it more affordable.”
Sales tax exemption on clothing and footwear
In New York State, qualifying clothing and footwear purchases are exempt from state sales tax year-round. Many states offer “sales tax holidays” leading up to the school year, but in New York State, clothing and footwear are always exempt from the state’s 4 percent sales tax when they are sold for less than $110.
Clothing and footwear items sold for less than $110 are, also exempt from local sales tax year-round in New York City and the eight counties listed below. The combined state and local sales tax savings available in these localities could be as much as $9.65 on every $110 purchase.
In 2016, the state exemption alone is expected to save New York shoppers more than $891 million. Savings from the combined state and local sales tax exemptions are well over $1 billion annually.
This exemption applies to articles of clothing and footwear worn by humans that sell for less than $110 per item or pair, regardless of the total dollar value of all exempt items purchased. Examples of exempt items include: aerobic clothing; athletic clothing (but not equipment); bathing suits; coats; dresses; hats; hosiery; pants; shirts; shoes; sleepwear; underwear. For example: You purchase two shirts, two pairs of pants, and a dress. Each item costs less than $110, but the total amount of the purchase is $190. All the items purchased qualify for the exemption since each individual item costs less than $110.
Unfortunate for keeping it local, New York City is the closest locale to Nassau County offering the sales tax break for clothing and footwear purchases. The eight counties offering tax breaks are: Chautauqua, Chenango, Columbia, Delaware, Greene, Hamilton, Tioga and Wayne.
College textbooks: when they’re exempt from tax
Course textbooks—when full or part-time college students purchase them—are also exempt from New York State and local sales and use taxes throughout the year. Students can make qualifying purchases from any bookstore (including college or university bookstores), by mail order, or over the internet. If sales tax is erroneously charged, students can file form AU-11 (www.tax.ny.gov/bus/ads/au11.htm) to receive a sales tax refund on the purchase.
