Last fall, the state tax exemption for clothing and footwear under $110 ended (thanks to New York's horrible budget situation), meaning that New York City residents have been paying 4.375% sales tax—4% for the state, 0.375% for the commuter tax—on those items. Today, there's a little bit of relief, with the state tax exemption coming back, but only for clothing or footwear items under $55.
To sum up, here's how the city explains the tax situation: "Clothing and footwear under $110 are exempt from New York City's 4.5% sales tax. Starting on April 1, 2011, clothing and footwear under $55 will be exempt from the entire sales tax." See what other items are subject to tax here.
Some shoppers are psyched, but one store manager (Shoemania in Union Square) complained to WCBS 2, "“Even when they come to the register they always say ‘Why should I pay for this amount of money when I go to New Jersey and pay less amount for taxes’?"
