Is Express Taxing Tax-Exempt Items?

An Express in New York City charged a sharp-eyed reader tax on a belt that cost $34.50. Neither the city nor state levy tax on items costing less than $110.

According to the State of New York:

Effective September 1, 2007, Clothing and footwear worn by humans and costing less than $110 per item is exempt from the 4% New York State sales and use tax. This exemption does not apply to any locally imposed sales and use tax, unless the county or city imposing the tax elects to provide for it.

Effective September 1, 2007, recently enacted legislation (Chapter 82 of the Laws of 2007) provides that all clothing, footwear, and items used to make or repair clothing (hereinafter “clothing and footwear”) are exempt from the 4% New York City local sales and use taxes, regardless of the cost. However, sales in New York City of clothing and footwear costing $110 or more per item or pair remain subject to the 4% New York State sales and use taxes and the ?% sales and use taxes imposed by the State in the Metropolitan Commuter Transportation District (MCTD).

The 8.375% sales tax cost our reader an extra $2.89. He writes:

On Saturday I purchased a belt at Express here in NYC. They charged me sales tax.

There is no sales tax on Clothing under $110 per Item. Belts included. The store would not refund my money.

I filed a complaint with New York State Dept Of Tax and Finance (800) 698-2909.

I also complained to Express Corporate office (614) 415-4633.

After filing the complaint Express has agreed to refund me the tax $2.89

http://consumermediallc.files.wordpress.com/2007/12/rec-thumb.jpg?w=463&h=1103Come on Express, the revised tax code is so in season.

Sales Tax Clothing and Footwear – Permanent Exemption Information [State of New York]

Comments

  1. RvLeshrac says:

    @spinachdip:

    Belts are rare for skirts.

    If you really want to get technical, belts can’t be considered ‘clothing,’ or else you have to include elastic and thread. Belts are worn as an accessory to keep improperly fitted pants from falling down or, in the case of suits, for fashion – not as a necessity.

    The same applies to ties and sports/suit-jackets sold seperately.

    If you’re buying a suit or a tuxedo, however, you can consider everything included as ‘clothing,’ since it is designed to be worn as a single piece.

  2. gingerCE says:

    I’m okay with belts being clothing BUT then I’d like to add purses/wallets be considered clothing as well.

    Again, that is a nice belt and the price is fair. On the receipt there is a coupon for $10 off so I guess they have those survey coupons on all their receipts and online they sometimes have coupons. I’m gonna try to get the belt as a present.

  3. FLConsumer says:

    @spinachdip: The fat slob look isn’t a Midwestern-exclusive. Commuting between NYC & Florida has clearly shown me that many FL’ians are fat slobs*. Hopefully this look (and stupidity) won’t ever be in style in NYC. I don’t think gravitational forces closer to the equator have anything to do with it either.

    *(not implying that all people who are fat are slobs, but in this case, the people I’m referring to here are)

  4. trollkiller says:

    @FLConsumer: Yep gravitational forces has everything to do with it. Once Yankees get fat, gravity pulls them straight down to Florida so they can retire, drive with their left turn signal on and bitch about how much better it is up north. Once trapped in the gravitational pull they are unable to escape and return home. Please for the love of God, tell them to stop eating all those delicious foods that nobody in Florida can make right.

  5. jeff303 says:

    @headon: absolutely BRILLIANT troll. Thanks for the subsequent laughs.

  6. vacuumrt says:

    This is definately a mistake. I work in POS systems at a major retailer and we have several stores in NY. They have very complicated tax laws. Belts are defined as accessories pretty much everywhere in the country. I’m sure their merchandising system has them defined as accessories. So in this case, not only do they have to make sure that the tax functionality is properly modified, but they have to ensure that the class of the merchandise is properly modified (Acc -> ready to wear).

    I’m sure that everyone has a tough job and everyone makes mistakes sometimes. The best thing to do would be to bring it up to the salesperson. They can modify the tax and take care of it right there. If not, call customer service and they can refund it.