Mayor Daley, are you listening? We know you’ve done quite a bit to make the Second City fashion-friendly but with 9% sales tax, even the most dedicated Chicago devotee is tempted to look elsewhere…
New York Mayor Michael Bloomberg proposed yesterday to eliminate the city’s 4% sales tax on clothing. Fashionistas in NYC are dancing in the streets! In an address delivered at the New York City
College of Technology in Brooklyn, Bloomberg put forward a total of $1 billion in tax cuts during his 6th Annual State of the City address. That figure includes $750 million of
property tax cuts. He mentioned last year,
the city’s unemployment was at an all-time low and its bond rating was
at an all-time high.
If the retail tax cut is approved, it would save taxpayers an
estimated $110 million annually. Mayor Bloomberg said, "To make sure that
shoppers and visitors continue to flock to great stores in all five
boroughs, we will totally eliminate the city sales tax for all clothing
Other states that have no sales tax at all are Alaska, Delaware,
Oregon, New Hampshire and Montana. However, neighboring New Jersey exempts
clothing from sales tax, a move made years ago to boost the state’s
retail sector. The clothing sales tax in other big cities varies, from
9% in Chicago, 8.5% in San Francisco and 8.25% in
Los Angeles to 5.75% in Washington, D.C.
Why do I still live in Chicago?
–Joanne Molina and Lauren Dimet