Testifying at a City Council hearing about Michael Bloomberg’s executive budget, city budget director Mark Page was just asked about the proposal to lift the sales-tax exemption that excludes clothing purchases under $100.
David Weprin, chair of the Finance Committee, told Page the Council estimated it could mean losing 1,200 jobs in the retail sector.
“It may result in a loss of revenue in the long-term,” he said.
Page said he was not sure “if that were true” and, “[T]here are trade-offs in most things that we do.”
Not taxing clothing under $110 would cost the city $280 million, Page said, and that the sales tax would have to be at “a higher rate to compensate.”
The budget already calls for an increase from 8.375 percent to 8.75 percent.