Gear Up for the Clothing and Tanning Taxes

Clothing, shoes, and indoor tans are no longer ‘duty-free.’

The New York Assembly passed legislation to temporarily suspend the current tax exemption on clothing and shoe under $110 from October 1, 2010 through March 31, 2011. So, come this October, Manhattanites will be paying an extra 8.875 percent on all clothes and shoes. The new legislation dictates that the tax exemption would be reinstated on April 1, 2011, but at $55. The $110 exemption that currently stands in New York would not be fully reinstated until the following year, on April 1, 2012. According to WWD, Assembly Speaker Sheldon Silver (D-NY) said the revenue would increase by $330 million in the remaineder of said fiscal year. Boutiques will likely suffer the most considering many haven’t fully recovered from the recession. At least this tax will be temporary.

The tanning industry also took a tax hit. Indoor tanning services will be taxed 10 percent in effort to help to fund health care reform. The health risks of tanning beds justifies the ‘sin tax’ on the tanning industry, similarly to taxes the government placed on alcohol, cigarettes, junk food, soda, trans fats and gambling. The tanning tax is estimated to raise $2.7 billion over 10 years.

My advise? Take advantage of summer and early fall prices and buy your favorite jeans, sandals, sweaters, you-get-the-idea, now. As for your complexion, grab some sunblock and head for the outdoors.

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