New York sales tax exemption takes effect

NEW YORK This time, the tax break is supposed to be permanent.

The state started charging sales tax again in 2010 to help close its budget gap.

In New York City, clothing and shoe purchases under 110-dollars are also exempt from city sales tax, which means a total of nearly 9 percent saved.

We asked one shopper "Do you know what today is the first day of?"

She replied "Easter week, Palm Sunday, I don't have a clue, Passover week?..."

Yes, technically she's right.

But we're talking about something that will save those spending in New York State roughly 704 million dollars annually.

Today is the first of many, when, for example, spending 104.85 cents on clothing or shoes means buying exactly that much.

Assembly Speaker Sheldon Silver came up with the concept of the sales tax exemption back in 1995 as a way to help working families.

He reintroduced the idea following the September 11th attacks as a way to revitalize the city's then sluggish economy.

"We've had sales tax free weeks in the past and we have seen how it generates business for New Yorkers," said Silver.

Many we talked to Sunday are welcoming back the change with open wallets.

"Everything I buy, I always buy when there's no tax. I didn't pay for tax on anything," said one shopper.

But other shoppers aren't buying it: the concept that, if you drop the tax, they will come...here.

"The prices are already high so they are just taking off what they should have took off already," said another shopper.

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