New York state will add 4 percent more in clothing tax to items under $110 starting Friday.

The 4 percent increase brings clothing tax to 8 percent, but Syracuse University students said they are unconcerned about the raise, and businesses near SU campus reported they do not expect shopping habits to change.

The state passed the clothing tax in August as a way to close the $9.2 billion budget gap. The tax hike is expected to raise a total of $330 million for the state, according to the 2010-11 state budget. 

Each New York state county has always been able to determine its own tax, with a maximum at 4 percent. Periodically, New York has chosen to add statewide taxes before. When the state is in need of more money, it brings back this clothing tax. The last time the state exercised this tax was in 2005.

This 8 percent clothing tax isn’t permanent. On April 1, 2011, clothing items under $55 will go back to having a 4 percent tax. And on April 1, 2012, the tax will go back to the way it was before Friday with 4 percent on any clothing and shoe items under $110, according to the New York State Department of Taxation and Finance. 

And for anyone ordering clothing and shoes online, the 4 percent sales tax will be in place for any orders made before Friday, regardless of when the order is delivered.

A tax of 8 percent was formerly considered a luxury tax. Items sold for more than $110 have always had the New York state tax of 4 percent added to their county tax. 

This tax, voted for by Sen. David Valesky, D-N.Y., and opposed by Sen. John DeFrancisco, R-N.Y., may result in less spending by consumers, according to a July 28 article on SmartMoney. 

But Michael Stuart, a sophomore in the Martin J. Whitman School of Management, said he will not change his habit of spending anywhere between $100 and $400 on a single purchase prior. Stuart was not worried about the fact that the government was receiving more of his parents’ money. 

Stuart said while he is not concerned about the tax, it could make other people consider the price of their purchases.

‘People actually realize how much they could be saving when all the little things add up. It all goes toward something, though, and every two dollars counts,’ he said.

Victoria Huish and Caitlin Doak, employees at J Michael Shoes, a Marshall Street clothing and shoe store, said students will not really be affected. Huish said she believes students are not concerned with the change and will continue being loyal customers, despite the higher tax. 

‘The parents are more aware and worried about the tax,’ Huish said. 

Sophia Dimanidis, the owner and manager of the new Marshall Street boutique Ellie Mia, said she shares this opinion. 

‘If you really, really want something, that extra 4 or 8 percent isn’t going to stop you from making a purchase,’ she said.

Though some places are considering hosting more sales in light of the tax increase, customers in the Syracuse area will not be so fortunate, Dimanidis said. Many of the shops on Marshall Street will not be hosting any sale opportunities, she said. 

‘I think everything will just stay the same,’ Dimanidis said. ‘Well, I hope everything will just stay the same.’

jawiggs@syr.edu

Published on September 29, 2010 at 12:00 pm