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Wait, There's a New Sales Tax? Shoppers Surprised at Price Increase

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Local store owners are worried that the sales tax on clothing and shoes under $110 will drive customers to shop online, according to the New York Post. Lawmakers initially repealed the tax in order to keep people from shopping in New Jersey, where there's no sales tax at all, but they brought it back less than two weeks ago in order to help balance the state budget.

Experts say the timing means bad news for holiday sales, and retailers don't seem happy, but the prevailing response among shoppers seems to be surprise. The Post talked to an employee at Filene's Basement in Union Square who said that customers weren't expecting prices to rise the first couple of days. "I think a lot of people didn't realize it was going to happen," the staffer told the paper.
· No sale for NYC tax [NYP]
· RackedWire: Sales Tax [Racked NY]

Filene's Basement

4 Union Square, New York NY