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New York State Proposes Luxury Tax

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Photography: Galactic Dreams


As if we don't pay enough taxes, according to WWD "Gov. David A. Paterson on Tuesday proposed an additional 5 percent sales tax on luxury goods, such as jewelry and furs costing more than $20,000, as one of scores of tax and fee boosts intended to close a widening gap in New York's budget. For those that love to spend big, this is bad news.

The reason for this hike is due to the recession and the collapse of revenues from Wall Street, "Paterson is seeking to eliminate the sales tax exemption on clothing and footwear priced less than $110, but he would replace it with two one-week exemption periods on clothing and footwear purchases of less than $500. Paterson's $121.1 billion budget plan would impose higher taxes on everything from personal services such as beauty, barber, manicure/pedicure and massage to beer and wine." No thanks!