ALBANY — Gov. David A. Paterson on Tuesday proposed an additional 5 percent sales tax on luxury goods, such as jewelry and furs costing more than $20,000, as one of scores of tax and fee boosts intended to close a widening gap in New York’s budget.
Responding to the recession and the collapse of revenues from Wall Street, a key driver of the economy, Paterson is seeking to eliminate the sales tax exemption on clothing and footwear priced less than $110, but he would replace it with two one-week exemption periods on clothing and footwear purchases of less than $500. Municipalities would have the option of joining the state in offering the exemption. Restructuring the exemptions would generate $462 million in the 2009-10 fiscal year and $660 million the following year.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"