For Immediate Release
September 15, 2005

New York City Puts Its Best Foot Forward with Permanent Apparel and Footwear Exemption, While the State Offers Tax Shelter Relief

New York City Puts Its Best Foot Forward with Permanent Apparel and Footwear Exemption, While the State Offers Tax Shelter Relief

New York City Puts Its Best Foot Forward with Permanent Apparel and Footwear Exemption, While the State Offers Tax Shelter Relief

Certain clothing and footwear are exempt from local taxes, effective September 1, 2005.

All clothing and footwear, and items used to make or repair exempt clothing, costing less than $110 per item or pair will be exempt from the New York City 4% local sales and use tax. This is a year-round exemption, but does not include the NY state sales and use tax, or any other local sales and use tax, nor to the state’s Metro Commuter tax.

The State of New York State is offering a voluntary compliance initiative that will allow Taxpayers to report and pay underreported tax liabilities and interest due to tax shelter activities. The initiative is effective from October 1, 2005 through March 1, 2006.

Taxpayers must complete an election form, file or amend tax returns, and remit full payment of tax and interest attributable to the tax avoidance transaction.

Participating Taxpayers can elect one of two options, either with or without appeal rights. Taxpayers who fail to participate in the initiative will be subject to additional penalties, including an interest penalty equal to 100% of the interest payable on any deficiency assessment

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com

 

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