My fiancée shortly heading over the Atlantic to NYC for some serious shopping with a girl friend. I suspect (but have resolved not to pass comment) that they will both be spending several thousand $ during the six days of their stay.

So... now a few questions which I'd be very grateful to answers for so that I can pass the info along in the manner of a helpful and loving boyfriend.

1/ How much is sales tax in NY?
2/ Are all items marked with tax added or does it come as a little surprise when you get to the till?
3/ When overseas (non-EU) visitors come to the UK there is a scheme whereby they can claim back VAT on purchased items (not services) that they will be taking out of the country with them on their departure. Is there a simillar scheme in NY for visitors to claim back their sales tax and if so how does it work.
4/ Finally... apart from the state Sales Tax are there any additional Value Added Taxes chargeable which she may need to be aware of.

Many thanks to you all in anticipation of enlightenment!

Dr D.

I sed to work in retail, so I hope I can help with your questions

1. Sales tax in NYC (combined NY State and NYC) is now 8.265% (how's that for round numbers!) Pretty much everything is taxed except most grocery items (chocoalte, for example , IS taxed). Restaurant meals are taxed at the same rate, prepared foods (like sandwiches taken out from a deli, slices of pizza ) are supposed to be taxed, but you may or may not find that to be the case...
Most services (haircuts, etc) are taxed, but not taxi rides, theater movie or museum tickets.
2. Prices marked in the US, with very very rare exceptions DO NOT include tax
3. Sales taxes in the US, unlike VAT taxes in many parts of the world, are NOT refundable.
If you happen to buy merchandise and have it shipped BY THE SELLER out of NY (to another country or even to another state that has no sales tax--or no tax on that category of items) you will not have to pay the sales tax. If you purcahse the item and send it yourself, you have to pay the tax.
4.There is a hefty additional room tax for hotels, but offhand I can't think of any other surprise taxes

Corrections already!
Obviously "I USED to work in retail"
and the tax rate is 8.625%, not the lower 8.265%
Sorry!

Janie...
Thank you so very much, you've answered all those questions quite fully enough.
Now I can prepare my fiancée (and her credit cards) for the hard work of serious shopping.

Many thanks
Dr D.

Unless things have changed recently, Louisiana is the only U.S. state which has a "tax-free shopping" program which allows international visitors to CARRY their purchases out of the state with them. (You get the refund at New Orleans airport, among other places). This program is similar to the VAT refund schemes in Canada and many European nations.

Grocery food items are not taxed because they are considered "necessary" rather than "luxury." In janie's example, chocolate is a luxury, though some may debate this point.

I believe there is a tax loophole of sorts on clothing: if you make a clothing purchase that costs less than $100, you will not be charged tax. Again, I think this is a "necessary" versus "luxury" issue.

Unfortunately, that clothing exemption that ellenem wrote about no longer exists.

but the clothing exemption (below $110) is SUPPOSED to be reinstated next June. Keeping my fingers crossed...

It's too bad that the clothing exemption is gone. I used to buy shoes in New York because of it. Drats.

If they are spending large sums of money, they could go to across the river to NJ were there is no sales tax on clothing. There is great shoppingwith all many of the high end stores found in NYC at malls such as Short Hills and Riverside Square.

It isn't as glamorous as 5th Ave though. Not sure if it is worth the hassle, but it's an option if concerned about tax.

Thank you all for your responses; very helpful indeed.

Dr D.

-
For those who'll be visiting New York City in next few weeks, be aware that you can take advantage of a city and state sales-tax-free period for clothing and footwear for items under $110 from Monday, Jan 26 through Sunday, Feb 1, 2004. Exemption applies only to clothing and footwear. For further info, look on website >>> www.nycvisit.com/shoptaxfree

Thanks for the "heads up" Tess. I had forgotten about this. Is it just NYC or the whole area (ie Westchester, LI etc.)?

The exemption is only for the 4.25% NYS Sales tax. Those areas with local (county, city, etc.) sales taxes make their own decisions, and many have exempted the same items as the state.

I have a business & must collect sales tax, and quote from a mailing I've received from Dept of Taxation&Finance.
Nassau Co.: 4.5%, Orange Co.: 3.25%, Westchester Co.(outside the cities of MtVernon, NewRochelle, WhitePlains, & Yonkers): 2.75%, MtVernon: 4.25%, New Rochelle:4.25%, WhitePlains: 3.75%, Yonkers:4.25%. Some "clothing" remains taxable: Antique clothing, costumes, non-prescription goggles, headbands, helmets, skates, mitts, sewing accessories, sports-related shoulder pads&kneepads&etc., Wigs, yard goods & notions.

Services, i.e., haircuts, manicures, are taxed at 4%.

Delaware and New Ampshire are tax free also. Sometimes it pays to go to New Jersey to shop.

adoptionisfab, just wondering why you are bringing so many posts from 2003 to the top?