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With New York "eliminating" sales tax on "low priced clothing," Finger Lakes shoppers may be surprised when they are still charged 4% sales tax on those off-brand sneakers. With public employee pension, health care and union contract mandated salary increases still going through the roof, its not likely that counties will volunteer to drop their 4% take. So let's remember Adam Smith, and follow the pointing finger on his invisible hand.
Here are three of New York's adjoining states which have zero sales tax on any clothing, from t-shirts to ball gowns. These states all feature convenient clothing malls just over the New York state line. For instance, New York's state employees often make the scenic 40 minute drive from our state capital to shop tax-free at Lee Premium Outlets in Massachusetts, pictured above. From eHow Money:
Necessities like clothing are exempt from the sales tax in Massachusetts.
New Jersey's sales tax exemptions include clothing, which gives the state a competitive advantage over neighboring states that do tax clothing. Shoppers often come from other states to shop for clothes in New Jersey.
As part of an initiative to minimize the tax burden on low-income individuals, Pennsylvania does not impose a tax on clothing.
And Professor Jacobson is spared sales tax on any clothing he purchases in Rhode Island.
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