Authorizes counties to establish a clothing and footwear tax free week in August

BILL NUMBER:S7349A

Title of bill

An act to amend the tax law, in relation to authorizing counties to establish a tax free week in August

Purpose

The legislation would authorize counties to establish a tax free week in the month of August.

Summary of provisions

Section 1. Amends Section 1210 of the tax law by adding a new subdivision (p).

§ 1210(p). Sales tax exemption. (1) Notwithstanding any other law to the contrary, any county, except a county wholly contained within a city may by local law or resolution, elect to exempt purchases of clothing and footwear for which the receipt or consideration given or contracted to be given is less than one hundred ten dollars per article of clothing, per pair of shoes or other articles of footwear or per item used or consumed to make or repair such clothing and which becomes a physical component part of such clothing, sold within the county from any sales and compensating use taxes imposed pursuant to part one of this article for a period of up to seven days in August commencing on the third Friday.

(2) Requires a law or resolution providing for the exemption to be sent to the commissioner's office in Albany at least thirty days prior to the date it is to become effective.

(3) Requires certified copies of said law or resolution to also be filed with the city or county clerk, the secretary of state and the state comptroller within five days after the date it is enacted.

Section 2. This act shall take effect immediately.

Justification

Many states provide taxpayers with tax free events ranging from a weekend to one week. Such tax free events are popular with taxpayers and a boon to local retailers who welcome the additional business. In Tennessee, the increase in retail sales has been so high that many stores have extended hours. States such as Maryland, Tennessee, South Carolina, Florida and Alabama empower their counties to exempt county sales tax from certain items. Sales tax exemptions have been granted in New York State and New York City for state and city residents typically for clothes and footwear.

This legislation provides counties with the legal authority to exempt purchases of goods and merchandise, excluding automobiles and

gasoline, sold within the county for up to a seven day period beginning on the third Friday in August. The timing is designed to provide sorely needed financial relief for parents of school-aged children who are purchasing supplies for the school year.

This legislation is opt-in for counties. County government must pass a resolution(s) to take such action.

Legislative history

This is a new bill.

Fiscal implications

There are no fiscal implications to the state.

Effective date

Immediately.