Updated 04/01/2012 06:47 PM
State sales tax exemption a big deal?
New Yorkers are getting some relief in the form of a state tax exemption on clothing and shoes under $110, but as YNN's Erin Clarke tells us the move might not necessarily boost the economy like some people might expect.
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NEW YORK STATE -- "Now I can buy more stuff," said Alicia Evans.
A common reaction from people learning that New York State cut sales tax on clothes and shoes under $110.
"I think it's really helpful because the sales tax does make a huge difference," said Ann Slaven.
The tax exemption began April first. Last year the state phased out the four percent sales tax on items under $55, reversing a suspension of the exemption that went into effect in October of 2010.
"New York state has used sales taxes as a lie bit of a lever at times to change sales," said Syracuse University Economics Professor, Don Dutkowsky.
The state gets some much needed revenue when the tax is added on, but consumers feel the pinch. So when the tax is axed it feels like a gift to shoppers and retailers.
But store owners say that excitement starts to wane after a while and they don't see the effects of sales tax being removed.
"At this point now because now because it has been kind of going back and forth people have kind of put it in the back of their mind," said Modern Pop Culture Owner, Nathan Schafer.
For Schafer that means business doesn't boom depending on the state sales tax.
"When it first started it was kind of like ok if you're going to run a sale you might hold off and start it when that because it's kind of like that double thing where you put some things on sale plus less sales tax," said Schafer.
That doesn't mean he and other retailers won't welcome the crowds now, but they know the rush may only be temporary.
Although the state eliminated sales tax on items under $110, shoppers in most New York counties still have to pay a county tax.