RetailEdge Point of Sale Software Logo

How do I handle the new New York Sales Tax Rate

Frequently Asked Questions

Moderator: Moderators

How do I handle the new New York Sales Tax Rate

Postby RetailEdge Moderator » Thu Mar 31, 2011 12:21 pm

New York State is changing the sales tax clothing exemption effective April 1, 2011. More about this change is can be found at www.tax.ny.gov/bus/st/sales_tax_clothing_exemption.htm and the summary has been listed below.

In the case where clothing and footwear:

less than $55 are fully exempt
at least $55 but less than $110 are subject to 4% state tax (and ⅜% MCTD tax, if applicable)
$110 or more are subject to full state and local tax.

you would do the following in RetailEdge.

1. Make sure you have a department or class setup for the footwear and clothing departments.
2. Create a State sales tax (say 4%) with a Department or Class Exception Type that enables 2-Tiered Tax Rates. The base rate for this department would be 0% and then the 2-tiered tax rate would be set to:
Item Price $55 and Rate On Amount >= Item Price (%) would be set to 4.
3. Create a Local/County sales tax (say 3%) with a Department or Class Exception Type that enables 2-Tiered Tax Rates. The base rate for this department would be 0% and then the 2-tiered tax rate would be set to:
Item Price $110 and Rate On Amount >= Item Price (%) would be set to 3.

Test this on one department/class first. Then enter some items onto the sales screen to make sure it works as expected.




New York State is changing the sales tax clothing exemption effective April 1, 2011


Sales of less than $55 are exempt from state sales tax

From April 1, 2011, through March 31, 2012, sales of clothing and footwear costing less than $55 per item or pair are exempt from the state's 4% sales tax and the ⅜% MCTD tax. Sales may also be exempt from local sales tax in some localities.

Local sales tax exemptions vary

In localities that don't have either the less-than-$55 or less-than-$110 local sales tax exemption, all sales of clothing and footwear costing $55 or more are subject to the full state and local sales tax.

For localities that have the less-than-$110 local sales tax exemption, sales of clothing and footwear costing:

less than $55 are fully exempt
at least $55 but less than $110 are subject to 4% state tax (and ⅜% MCTD tax, if applicable)
$110 or more are subject to full state and local tax.

Note: Columbia County enacted the less-than-$55 exemption and sales of clothing and footwear costing:

less than $55 are fully exempt
$55 or more are subject to the full state and local sales tax.

Columbia County's less-than-$110 exemption resumes April 1, 2012.
User avatar
RetailEdge Moderator
Site Admin
 
Posts: 1035
Joined: Mon Jan 23, 2006 5:02 pm

Return to RetailEdge 8 - FAQs

Who is online

Users browsing this forum: Baidu [Spider] and 1 guest