Assemblyman McDonough Calls for Restoration of Sales Tax Exemption
Assemblyman David G. McDonough (R,C,I-North Merrick) recently called on Gov. George Pataki and the state Legislature to reinstate the sales tax exemption on purchases of clothing and shoes costing less than $110. The sales tax was originally eliminated during the 2000 legislative session because of the enormous success of sales tax-free weeks. Removing this onerous and regressive sales tax helped foster a vibrant and dynamic retail environment throughout the state and Long Island region, said McDonough.
But, faced with looming budget deficits sustained in the wake of the September 11 attack and in an attempt to generate additional revenue to fill an expected budget shortfall in the 2003 state budget, the Legislature enacted a one-year moratorium on the sales tax ban that expired on June 1, 2004. This legislation was extended to expire on June 1, 2005.
Assemblyman McDonough and many of his Assembly colleagues have written to the governor asking that he allow the sales tax exemption moratorium to expire on June 1. The Assembly members state that "New Yorkers were asked to make a short-term sacrifice for the greater good of our state. However, despite signs of a rebounding economy, the Legislature has seemingly forgotten its promise to New York residents."
Assembly McDonough said, "The elimination of the moratorium of the sales tax exemption is good business. At a time when small retailers are again faltering and unable to keep doing business in New York state, repealing the moratorium will allow retailers to again prosper and keep New Yorkers from going across state lines to shop. In addition, it will allow New Yorkers to save money on these purchases."