NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A597
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the tax law, in relation to restricting sales tax
exemptions on fur-bearing articles of clothing or footwear
PURPOSE:
This bill eliminates current sales tax exemptions for fur-bearing arti-
cles of clothing.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends paragraph 15 of subdivision (b) of section 1101 of
the tax law, as amended by section 77 of part A of chapter 56 of the
laws of 1998.
Section two sets forth the effective date.
JUSTIFICATION:
Clothing and footwear selling for less than $110.00 is exempt from state
sales tax. This law was enacted to assist struggling New Yorkers to
purchase necessities such as school uniforms and work-appropriate cloth-
ing. Exemptions were written into the law to ensure that the tax
exemption would accomplish the goal of assisting people to buy necessi-
ties, not to make purchases of luxury or lavish goods easier. However,
clothing with components such as precious stones, pearls and other
jewels are not exempt from state sales tax. Adding fur-bearing clothing
to the list of clothing that would not be exempt from state sales tax is
the next logical step.
LEGISLATIVE HISTORY:
2021-22: A.573 - Referred to Ways and Means
2019-20: A.519 - Referred to Ways and Means
2017-18: A.3828 - Referred to Ways and Means
2015-16: A.6783 - Referred to Ways and Means
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
This bill shall take effect on the first day of a quarterly sales tax
period, as set forth in subdivision (b) of section 1136 of the tax law;
next succeeding the thirtieth day after it shall have become a law.
Provided, however that the Commissioner of taxation and finance shall
take any action necessary for the timely implementation of this act on
or before the date on which it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
597
2023-2024 Regular Sessions
IN ASSEMBLY
January 9, 2023
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to restricting sales tax
exemptions on fur-bearing articles of clothing or footwear
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 15 of subdivision (b) of section 1101 of the tax
2 law, as amended by section 77 of part A of chapter 56 of the laws of
3 1998, is amended to read as follows:
4 (15) Clothing and footwear. (i) Clothing and footwear to be worn by
5 human beings, but not including costumes [or], rented formal wear, or
6 fur-bearing clothing or footwear, and (ii) fabric, thread, yarn,
7 buttons, snaps, hooks, zippers and like items which are used or consumed
8 to make or repair such clothing (other than such costumes or rented
9 formal wear) and which become a physical component part of such cloth-
10 ing, but not including such items made from pearls, precious or semi-
11 precious stones, jewels or metals, or imitations thereof, or fur.
12 § 2. This act shall take effect on the first day of a quarterly sales
13 tax period, as set forth in subdivision (b) of section 1136 of the tax
14 law, next succeeding the thirtieth day after it shall have become a law.
15 Provided, however that the commissioner of taxation and finance shall
16 take any action necessary for the timely implementation of this act on
17 or before the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00769-01-3
