ALBANY, New York — New York State may become the 39th state to join a coalition to collect sales taxes on purchases made in catalogs and over the Internet.
Senate Majority Leader Joseph L. Bruno, a Republican, and Assembly Speaker Silver, a Democrat, came together to pursue what is estimated would bring $3.5 million to the state by 2006 if both houses of the legislature pass the bill.
"The legislature finds that a simplified sales and use tax system will reduce, and over time eliminate, the burden and cost for all vendors to collect New York State’s sales and use tax," the leaders said in a joint statement.
While Gov. George E. Pataki has vowed to veto any measure that would increase taxes, this bill may be approved. On Tuesday, the legislature passed a bill increasing the state’s sales tax by one quarter percent to 4.25 percent. Pataki has vowed to veto this passed legislation, but the Assembly and the Senate have already passed an override for the measure to become law.
Included in the legislation will be a tax-free week the third week in January and the first week of September on all clothing and footwear, with a $110 cap. Under the proposed state budget, the state plans to repeal its sales tax exemption on apparel costing less than $110 per item. That tax was dropped in March 2000. The reinstated taxes are expected to bring in an additional $363 million in revenue for the fiscal 2003 and 2004 budgets.
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