The New York Assembly passed legislation last night to include the sales tax on clothing and footwear under $110. The sales tax exemption on clothing and footwear under $110 would be temporarily suspended from October 1 2010 through March 31 2011.
Beginning April 1, 2011, the exemption would be reinstated at $55 until March 31 2012. The exemption would revert back to $110 on April 1, 2012. Local governments would be given the option to maintian their current exemptions, or opt into the exemption schedule spelled out in this section of the law.
According to Assembly Speaker Sheldon Silver (D-NY), the revenue would increase by $330 million in the remaineder of this fiscal year, which runs October 1, 2010 to April 1, 2011.
Governor Paterson has yet to meet with Speaker Silver or Senate Majority Leader John Sampson (D-Brooklyn) to discuss any further budget or revenue recommendations. Governor Paterson said Thursday that he was not interested in ‘chit-chatting” with the legislative leaders and that he was not interested in meeting with them until they had a firm plan to cover the $9.2 billion shortfall.
According to sources, the Senate most likely will return to Albany the week of July 12 or the week of July 19. Meanwhile, Assembly Speaker Sheldon Silver, in closing the legislative session last night, July 1, at midnight, said he had no plans to return to Albany unless the Governor called a special session.