Shoppers will get a break from the 4 percent state sales tax as well as a 0.375 percent Metropolitan Commuter Transportation District tax. In New York City, purchases under $110 have already been exempt from the city’s own 4.5 percent sales tax which makes a total of 8.875 percent or about $8.88 in savings on a $100 item.
“You can’t split a suit in half,” to meet the exemption, said Wayne Berkowitz, a partner and head of the State and Local Tax Group with Berdon LLP in New York. “If you’re buying five items and they’re all under-$110 items, you’re good.”
The full tax exemption returns after a more than one-year hiatus when it was amended to help close a state budget shortfall. From October 2010 to March 2011 there was no relief from the state sales tax or the commuter surcharge. Those breaks returned for items of less than $55 in price from April 2011 through March.