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.
Paterson’s $121.1 billion budget plan would impose higher taxes on everything from personal services such as beauty, barber, manicure/pedicure and massage to beer and wine. It seeks to close a $15.4 billion budget gap over the next two fiscal years.
The luxury goods tax would raise $12 million in 2009-10 and $15 million in 2010-11.
The austere spending plan also mandates widespread service cuts and is expected to trigger a battle in the state legislature, which faces an April 1 deadline to approve it.
“Adjusting our state budget to reflect this new fiscal environment will be an extraordinary challenge,” Paterson said in prepared remarks.
Paterson proposed closing a loophole that allows certain vendors, such as private label credit card lenders (including department stores), to reclaim sales tax revenues from debts that are not repaid, but prohibits other vendors or lenders to access these revenues. The proposal would limit the credit refund to the vendor only.
The governor wants to remove the discrepancy in sales tax between manufacturers’ coupons and store-issued coupons.
Ted Potrikus, legislative liaison for the Retail Council of New York State, said he would have to review the proposals with their members before commenting.
In addition, Paterson wants to limit itemized deductions for high-income taxpayers. This would restrict the ability of taxpayers with incomes of more than $1 million to reduce their liability by claiming itemized deductions. At present, taxpayers with incomes in excess of $525,000 are allowed to claim 50 percent of the value of itemized deductions. Charitable deductions would be excluded from this proposal and may still be claimed as itemized deductions for the purposes of state income taxes.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia