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How do I handle the new New York Sales Tax Rate

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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.

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Re: How do I handle the new New York Sales Tax Rate

Postby RetailEdge Moderator » Thu Sep 24, 2015 1:36 pm

Here is the link to the latest New York State Tax document.
Sales and Use Tax Rates On Clothing and Footwear
Effective September 1, 2015

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Re: How do I handle the new New York Sales Tax Rate

Postby RetailEdge Moderator » Thu Sep 24, 2015 1:47 pm

Looks like things might have changed a bit. Here is the link to the latest New York State Tax document.

Sales and Use Tax Rates On Clothing and Footwear
Effective September 1, 2015

If this applies to you and you want to set this up in RetailEdge here is one way to do it.

For example if you want to have Clothing items taxed at 4.625% (Nassau) below $110, 8.625% (Nassau + New York State) above and including $110 and have everything else taxed at 8.625% the whole way up:

1. Setup 2 Jurisdictions (1 New York State, 1 Nassau County).
2. Under the Nassau County jurisdiction, set a rate of 4.625%.
3. Under New York State, set a base rate of 4%.
4. Then, add a Department Exception for each State-tax-exempt Department. Set the Department Rate to 0%, checkmark for 2-Tier, set the threshold to $110, set the 2-tier rate to 4%, and set the Calculation Method to TOTAL Item Price.

Hope this helps


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