BIDaWIZ Blog » SALES TAX

Report: The Sales Taxman Cometh, Beware Accountants and Clients

The BIDaWIZ Team — Fri, 12 Dec 2014 01:59:34 +0000

Sales tax remains an attractive component for generating state revenue. In fact, nearly half of state revenue is derived from sales tax sources. Specifically, general sales tax accounts for 30.1% of total state tax revenue and selective sales tax (liquor, fuel, tobacco) totaled 16.3% in 2013. As such, state regulators try to collect every dollar that is owed to them. History certainly supports this claim since sale tax collections have steadily increased over the past 10 years. State regulators are now collecting nearly $400 billion in sales tax as compared to 2003 when states collected just over $250 billion. This growing trend is a consequence of complex regulations, new business models and technologies. Companies of all sizes need to have appropriate reporting processes in place to meet state sales tax regulations. To better understand these sales tax issues and the businesses that need expertise, we’ve analyzed our clients’ sales tax questions in this report.

Table 1

Our analysis
We analyzed over 2,200 client sales tax questions sent to our team of tax professionals over a 12 month period ending November 30, 2014. The clients varied by location, size, industry, tax personnel, and sales channel. Please note that most of the clients covered in the report were either small businesses (1-5 employees; <$1 million in revenue) or medium size (6-25 employees; $1 million to $25 million in revenue). Additionally, the type of sales tax questions varied by the following categories: tax compliance, tax nexus, product/service taxability, internet tax and use tax. We believe that our analysis is representative of the potential risk that could be triggered due to a failure of state sales tax compliance.

The survey
During the 2013 tax season, we surveyed over 3,500 users throughout the country that visited BIDaWIZ for tax help and/or to find a preparer to file their personal tax return. The respondents that were chosen at random, varied by income level, profession, age, geography, ethnicity and other demographic data. Thus, we believe that the survey results are representative of the general population that falls within the consumer tax category.

Location Matters
The data suggests that client questions were most relevant to businesses with a presence in New York, California, Washington, Texas & Florida, which all share common sales tax characteristics (Refer: Table 2: Sales Tax Questions By Location). Generally, many of these states have the highest sales tax rates in the country or in the top 25% quartile in comparison to the rest of the country. Furthermore, these states all have more than 50 different sales tax jurisdictions, which further increases the complexity associated with maintaining sales tax compliance within each of these states.

Internet Taxation, Product/Service Taxability, Tax Compliance & Tax Nexus By Location
The more granular data suggests that the type of sales tax questions varied by state. For instance, almost a third of clients with sales tax questions that related to internet taxation (online selling/buying) had a presence in California (Refer: Table 2: Sales Tax Category By Location). This is likely due to the fact that sales tax in general is more complicated for California sellers than in other states.

Product or service taxability was a major concern for Washington and New York based clients. The regulations for both of these states are complex as it pertains to whether or not certain products or services are taxable. In many instances, there are exceptions to the exceptions (i.e. digital goods/software).

Separately, New York, California & Washington had the most sales tax compliance related inquiries (Refer: Table 2: Sales Tax Category By Location). These types of questions covered exemption certificate management, frequency of remitting sales tax returns, and calculating the sales tax rates properly.

Tax nexus rules pose a greater risk to businesses with a presence in New York, California, Texas & North Carolina. Most of these states have widening sales tax nexus rules and they collect and have increased their sales tax collections for remote sellers. They have click-through and affiliate nexus.

Takeaway: Accountants and their clients need to be mindful of sales tax laws as it relates to each state. There are certain states such as California, New York, Texas & Washington that pose a greater challenge in sales tax compliance than other states in the country. Additionally, even if the business doesn’t have a physical presence in one of these states, they still may need to follow the laws of those jurisdictions.

Table 2

Who’s Asking Sales Tax Questions?
Of the 2,200 sales tax questions we analyzed, 1167 were submitted by business owners, 786 by the controllers/staff and 247 by an external accountant (Refer: Table 3: User Personas With Sales Tax Questions). We believe these figures not only illustrate the broad spectrum of user personas concerned with sales tax, but that it’s very important to business owners (Refer: Table 3: Top Sales Tax Concerns For Client Personnel). Interestingly, business owners are most concerned about product/service taxability rules and their questions were fairly high level and introductory (i.e. should we be collecting sales tax?). While most of the business owners covered in the report own a small to medium sized company, they did recognize the importance of having a sales tax compliance process in place.

As expected, controllers, tax directors, and staff accountants were most concerned about the sales tax remittance process, exemption certificate management & calculating the sales tax rate properly.

Nearly half of all external accountants asked questions about sales tax nexus. This is a high risk area for many practitioners who lack the sales tax knowledge across state lines. There were many instances in which the practitioner noted that their client is offering products or services either online or in another state. The other point to note is that only external accountants asked a meaningful number of use tax related questions. The logical question is how come they’re asking about use tax, but the businesses owners and controllers don’t seem too concerned? The answer may simply be that they don’t know enough to ask about use tax.

Takeaway: There is consensus within companies that sales tax compliance is an area of concern. Business owners are concerned about service/product taxability, controllers/staff are focused on tax compliance & certain external accountants need guidance on tax nexus. Lastly, use tax is a potential large risk area due to its lack of focus. Accountants and their clients need to focus more resources on addressing all of these areas of sales tax compliance. At the very least, they need to acknowledge their risk and put a plan in place to manage it.

Table 3

Sales Tax Questions Across Industries
The majority of questions were in reference to clients in the following industries: auto dealerships and repair providers, restaurants and food service suppliers, software and development companies, apparel businesses, industrial goods/service providers and the online sellers such as Amazon & eBay (Refer: Table 4: Sales Tax Questions by Industry). All of these industry groups share certain characteristics in having a large variety of products, services, customers, locations and sales channels.

Not surprisingly, online sellers (Amazon & eBay) had the most internet related sales tax questions. The context of most of their inquiries as least in part were in reference to the Fulfillment by Amazon (FBA) program and selling through to clients located in other states.

Auto dealers and repair shops expressed frustrations over sales tax laws relevant to product/service taxability. Specifically, many of the clients were confused over the taxability of certain repair services within their state. Food service suppliers and retail restaurants accounted for a large portion of taxability related inquiries. For instance, there was lack of clarity over the sales tax rules for serving food in restaurants versus in a pre-packaged form (Refer: Table 4: Sales Tax Category by Industry).

Food service businesses, auto dealerships and apparel companies all inquired about sales tax remittance, exemption certificate management & rate calculation.

Tax nexus rules were important to all companies. However, many of the e-commerce businesses in the home goods, photo services and apparel industries needed assistance with understanding state sales tax laws.

Takeaway: Sales tax compliance risks impact many industries. However, the following industries are impacted greatly: auto dealerships and repair providers, restaurants and food service suppliers, software and development companies, apparel businesses, industrial goods/service providers and the online sellers. Furthermore, many of the companies within the sample share certain characteristics. Namely, they had multiple locations, sold online, had a diverse client-base and had a variety of goods/services. Accountants need to identify clients with the aforementioned sales tax risk profiles and put a plan/recommendation in place to alleviate those concerns.

Table 4

What should clients do to better manage sales tax compliance?
First, clients need to identify their risks by analyzing product/service taxability exposure, nexus presence, customer composition, physical footprint and internal sales tax compliance processes. Then, they should incorporate automated technologies where applicable to mitigate their compliance risks as well as seek outside sales tax expertise.

What do we recommend for practitioners?
Professionals should assess their clients’ businesses in analyzing the key risk profiles. In those instances in which the practitioner does not have sales tax expertise, he/she should consider partnering with an accountant or firm that can fill that void. In addition, there are many sales tax compliance solution providers in the marketplace that the practitioner can introduce to their clients to assist in sales tax compliance.

More questions? Browse answers or ask sales tax questions online.

Tags: sales tax questions, tax nexus questions, business tax questions

Your Business May Be Subject To Trailing Sales Tax Nexus

The BIDaWIZ Team — Fri, 31 Oct 2014 19:53:08 +0000

Most businesses are well aware that their company may have to collect state sales tax if they have tax nexus. This may mean that the business has a physical location in the state, employees work within that state, and there is significant business being conducted within those borders. If your business does have nexus within a particular state, there could be long-term tax implications for doing business there. For instance, some states have implemented trailing sales tax nexus rules which require businesses to collect sales tax even if they no longer have tax nexus. Is your business liable for trailing sales tax nexus?

What is tax nexus?
Tax nexus can best be defined as the seller’s minimum level of physical presence within a state that permits a taxing authority to require them to register, collect and remit sales and use taxes. In determining whether an out-of-state seller needs to comply with tax nexus laws, it is appropriate to examine a combination of federal and state laws. Having said that, if de minimis activities are performed within a state that establishes only the “slightest presence” in a taxing jurisdiction, it is unlikely that the seller will need to register and collect sales tax in that area. If the company has more than a de minimis physical presence in the state, then sales tax registration and collection would likely be required. Most states characterize “doing business in their state” as regularly or systematically soliciting business either by employees, independent contractors, agents or other representatives or by distribution of catalogs or other advertising matter. It is important to know the rules in each state where your company conducts business.

What is trailing sales tax nexus?
Certain states require businesses to continue to collect sales tax even if they no longer have nexus within those borders. An example would be a company that conducts business in one state only to later close its retail locations and ceases to have a physical presence in that same state. If the state has a trailing nexus provision, the company must continue collecting and remitting sales tax for the duration of the provision.

Which states have a trailing sales tax nexus provision?
Several states have some type of sales tax nexus provision. The length of time that the provision applies varies by state. Washington State has the most extensive set of rules with a trailing sales tax provision lasting through the current year and an additional four years. Many other states have a trailing provision that doesn’t exceed twelve months. In case you’re wondering, the following states have a known sales tax trailing nexus provision: Alabama, Arizona, California, Iowa, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Rhode Island, South Carolina, South Dakota, Texas, Washington, Wisconsin, & Wyoming.

More questions? Browse answers or ask sales tax questions online.

Tags: sales tax questions, tax nexus questions, business tax questions

Is Your Business Subject To Sales Tax In Other States?

The BIDaWIZ Team — Thu, 04 Sep 2014 19:26:23 +0000

States auditors continue to crackdown on “out-of-state” businesses that are not compliant with their local state sales tax laws. The motive is quite clear as it is estimated that over $23 billion of sales taxes remains uncollected each year. Given that backdrop, it would be prudent to ensure that your business is following all state and local sales tax laws. This is especially important for businesses that have independent sales representatives located in different states throughout the country as this is an area that is often misunderstood.

Understanding sales tax nexus
Tax nexus can best be defined as the seller’s minimum level of physical presence within a state that permits a taxing authority to require them to register, collect and remit sales and use taxes. In determining whether an out-of-state seller needs to comply with tax nexus laws, it is appropriate to examine a combination of federal and state laws. Having said that, if de minimis activities are performed within a state that establishes only the “slightest presence” in a taxing jurisdiction, it is unlikely that the seller will need to register and collect sales tax in that area. If the company has more than a de minimis physical presence in the state, then sales tax registration and collection would likely be required. Most states characterize “doing business in their state” as regularly or systematically soliciting business either by employees, independent contractors, agents or other representatives or by distribution of catalogs or other advertising matter. It is important to know the rules in each state where your company conducts business.

Is your business merely soliciting orders across state lines?
It may be possible to argue that the nature of the solicitation work was so incidental that it falls under Public Law 86-972. This refers to the Interstate Income Act of 1959 that essentially allows a business to send representatives into a state to solicit orders for goods without being subject to an net income tax. If actual services were performed, then that’s different. It is important to note that this law only applies to the sale of tangible personal property and not to services. Thus, your sales representatives may still create sales tax nexus if the intent of the solicitation is for taxable services. Keep in mind though, that in many states services are sales tax exempt.

More questions? Browse answers or ask sales tax questions online.

Tags: sales tax questions, tax nexus questions, business tax questions, Ryan Himmel

Benefit From The 2014 Sales Tax Holiday Season

The BIDaWIZ Team — Fri, 01 Aug 2014 20:28:45 +0000

The back-to-school sales tax holiday season is upon us. As is customary, we’ve compiled a list of states offering sales tax holidays for paper, pencils, backpacks, clothing and other school supplies. Find out if your state is participating and/or has already released details.

How sales tax holidays work
Generally, many states offer a sales tax exemption by product and up to a certain amount. For instance, Florida offers a sales tax holiday for clothing and footwear that are less than $100. Please also note that even though state sales tax may be temporarily dropped, local sales tax may still be in effect at the city level. Having said that, North Carolina no longer offers a sales tax holiday because its legislators repealed it as of July 1.

Each state has its own rules about which items are exempt as well as price limits for items. Be sure you understand eligibility guidelines before you hit stores. As well, a few states allow localities to decide whether they want to participate in the sales-tax holiday. To find out which states will have sales-tax holidays and what will be exempt from taxes, see the list below.

Consumers should be wary of base price increases
Some businesses take advantage of consumers by raising prices to a level at or near the price before the sales tax holiday. For instance, rather than passing the sales tax savings onto the customer when a certain item like a back-pack is in high demand, they’ll actually raise prices to the equivalent of what it would have cost if there was not a sales tax holiday.

States 2014 Dates Max. Cost Per School Item
Alabama Aug. 1-3 $750 computers; clothing $100; supplies $50; books $30

Arkansas Aug. 2-3 <$100 clothing & footwear; $30 clothing accessories

Connecticut Aug. 17-23 <$300 clothing & footwear

Florida Aug. 1-3 $100 clothing; $15 school supplies

Georgia Aug. 1-2 $100 clothing; computers & accessories $1K; supplies $20

Iowa Aug. 1-2 <$100 clothing and footwear

Louisiana Aug. 1-2 $2,500

Maryland Aug. 10-16 $100 clothing and footwear

Mississippi July 25-26 <$100* clothing and footwear

Missouri Aug. 1-3 $100 clothing & footwear; computers up to $3,500

New Mexico Aug. 1-3 <$100 clothing and footwear; <$30 supplies; computers $1K

Oklahoma Aug. 1-3 <$100 clothing and footwear;

South Carolina Aug. 1-3 Unlimited

Tennessee Aug. 1-3 $100 clothing; $1,500 computers; $100 school supplies

Texas Aug. 8-10 <$100 clothing, footwear and backpacks

Virginia Aug. 1-3 $100 clothing and footwear; $20 school supplies

*:These states have provide a sales tax holiday for only clothes and not school specific supplies as compared to the other states listed.

More questions? Browse answers or ask sales tax questions online.

How Sales Tax Changes Hurt One Small Business

The BIDaWIZ Team — Fri, 18 Jul 2014 22:19:16 +0000

As we’ve mentioned in the past, nearly half of state revenue is generated from sales tax sources. As such, auditors have been cracking down on businesses that do not comply. Recently, a local Missouri Dance Studio was slapped with a $73,000 fine for failure to collect sales tax due in part to a recent change in state sales tax law as detailed here. To try to avoid this situation, you can easily become compliant with sales tax rules through our partner Avalara. Learn more by signing up for the webinar below.

More Questions? Ask your sales tax questions or find a cpa online.

Tags: sales tax, accountants, sales tax questions, Ryan Himmel

2013 Sales Tax Holidays To Benefit Back-To-School Shoppers

The BIDaWIZ Team — Wed, 17 Jul 2013 22:36:30 +0000

Many back-to-school shoppers are days away from the best deals on school supplies courtesy of the annual state sales tax holidays. Consistent with prior years, we’ve compiled a list of states offering sales tax holidays for school supplies. Find out if your state is participating and/or has already released details.

The sales tax holiday limitations
Many states offer a specific tax exemption by product and up to a certain dollar amount. For instance, Texas offers a sales tax holiday for clothing, footwear and school backpacks that are less than $100. This does not include accessories, athletic or protective clothing or rentals. Also, even though state sales tax may be temporarily dropped, local sales tax at the city level may still be in effect.

Consumers should be wary of base price increases
Occasionally, businesses take advantage of consumers by raising prices to a level at or near the price before the sales tax holiday. For instance, rather than passing the sales tax savings onto the customer when a certain item like a back-pack is in high demand, they’ll actually raise prices to the equivalent of what it would have cost if there was not a sales tax holiday.

States 2013 Dates Max. Cost Per School Item
Alabama Aug. 2-4 $50

Arkansas Aug. 3-4 Unlimited

Connecticut Aug. 18-24 $300*

Florida Aug. 2-4 $15

Georgia Aug. 9-10 $20

Iowa Aug. 2-3 $100

Louisiana Aug. 2-3 $2,500

Maryland Aug. 11-17 $100*

Mississippi July 26-27 $100*

Missouri Aug. 2-4 $50

New Mexico Aug. 2-4 $30

North Carolina Aug. 2-4 $100

Oklahoma Aug. 2-4 $100

South Carolina Aug. 2-4 Unlimited

Tennessee Aug. 2-4 $100

Texas Aug. 9-11 $100

Virginia Aug. 2-4 $20

*:These states have provide a sales tax holiday for only clothes and not school specific supplies as compared to the other states listed.

More questions? Browse answers or ask sales tax questions online.

Amazon Will Begin Collecting California State Sales Tax

The BIDaWIZ Team — Fri, 14 Sep 2012 18:00:45 +0000

Today will be the last day for Amazon consumers to avoid paying state or local California sales tax. Depending on where you live, the sales tax can be significant at 7.25% to 9.75%. Will Amazon implement this policy for other states too?

How does sales tax work for out of state sellers?
Technically, forty five states have rules in place which requires purchasers to remit sales tax or what is commonly referred to as a “use tax” for out of state purchases. For instance, if I live in California and purchase a product online from a seller located in Washington, that seller isn’t required to collect sales tax if they have no physical presence in my state. However, I’m supposed to send the appropriate sales tax for the purchase to my state. As you might expect, very few people go through the trouble of doing this because it’s not enforced. The law is slightly different in California as certain big sellers like Amazon must collect sales tax. Specifically, under current California sales tax law, any out-of-state retailer with tax nexus is supposed to be collecting and remitting sales tax on goods purchased. This rule only applies to businesses that sell more than one million dollars of merchandise annually in California or generate sales of more than ten thousand annually through California affiliate sites. Amazon’s latest action to collect sales tax from California purchasers is another sign that the online sales tax landscape is changing.

The reaction from other out of state internet sellers
There are several out of state internet sellers that will use Amazon’s sales tax policy change as leverage in their marketing materials to California buyers. Those that sell the same or similar products to Amazon, could gain market share by marketing that they do not collecting sales tax. The state will be following those marketing tactics to keep all sellers accountable, but it may be difficult to track.

What about other states?
Amazon already has started charging sales tax for purchasers in seven other states, including New York and Texas. They have plans to do the same with several other states as they would like to expand the number of distribution centers they have across the country.

More questions? Browse answers or ask your state sales tax questions online.

Online Shoppers May Have To Pay A Use Tax Soon

The BIDaWIZ Team — Thu, 02 Aug 2012 18:00:51 +0000

Most online shoppers understand that they have to pay state sales tax when they purchase from an online seller with a physical location in their state or tax nexus. However, most online shoppers don’t realize that some states require that they remit sales tax or what is commonly called a “use tax” to their state even if the online seller doesn’t have a physical presence. Many shoppers fail to go through the steps to remit the appropriate use tax which is costing states $24 billion annually (source: National Retail Federation).

How does the online use tax work?
Technically, forty five states have rules in place which requires purchasers to remit sales tax or what is commonly referred to as a “use tax” for out of state purchases. For instance, if I live in California and purchase a product online from a seller located in Washington, that seller isn’t required to collect sales tax if they have no physical presence in my state. However, I’m supposed to send the appropriate sales tax for the purchase to my state. As you might expect, very few people go through the trouble of doing this because it’s not enforced. That may change soon as local in-state merchants are putting pressure on state lawmakers to “level the playing field.”

Are states going to start collecting?
A 1992 U.S. Supreme Court ruling states that retailers don’t have to collect sales taxes in states where they lack a physical presence. However, many states that have previously supported the ruling are beginning to change their stance. The Streamlined Sales and Use Tax Coalition has rallied almost two dozen states to implement a process making it easy for all businesses to collect and forward sales taxes across state lines. But, a bill would need to pass both houses of Congress and need support from the state to begin collections. If that occurs, many states believe they will have processes in place within three to six months to begin collections. Therefore, online shoppers should be cognizant of the fact that online purchases may soon be subject to a sales tax collected by the out of state merchant.

More questions? Browse answers or ask state sales tax questions online.

Are Sales Tax Holidays Good For Business?

The BIDaWIZ Team — Fri, 29 Jul 2011 13:00:59 +0000

We’re heading into the back to school season which means sales tax holidays are just around the corner if they haven’t already started. Many states offer a sales tax holiday for back to school items during the first week of August. On the surface, these tax holidays (4 to 9% discount) sound great for both consumers and businesses. But, after careful analysis, the benefits may be somewhat temporary and not very good for the economy as a whole.

Do Sales Tax Holidays Help Business?
There’s no question that when there is a sales tax holiday for back to school items, generally those businesses benefit. However, the benefit is usually temporary in nature and the additional spending that occurs during the sales tax holiday likely reduces the actual spending anticipated later in the year (i.e. holiday season).

In addition, although businesses benefit from more foot traffic in their stores and thus more impulse purchases on non-exempt items, the benefit is short-lived. Usually, the consumer will spend less on other items throughout the year.

We would be much more a proponent of a longer-term sales tax reduction that is broad-based as opposed to a short-term fix in which the benefit is isolated to a few markets.

Does the consumer ever get the short-end of the stick during a sales tax holiday?
Yes, they do. Certain businesses take advantage of the holiday by boosting their margins. For instance, rather than passing the sales tax savings onto the customer when a certain item like a back-pack is in high demand, they’ll actually raise prices to the equivalent of what it would have cost if there was a sales tax holiday. The airline industry pulled off a similar tactic last week when it began raising prices after federal tax on plane tickets were suspended.

More Sales Tax Questions? Ask as Tax Professional your tax questions online.

More Dollars Going to New York Sales Tax

The BIDaWIZ Team — Thu, 28 Oct 2010 19:58:02 +0000

About four weeks ago, the 4% New York State sales tax for clothing & footwear items priced below $110 was reinstated. Yeah, that’s right shoppers. If you purchase a pair of jeans now for $85 in say New York City, you will have to pay $85+(4%+.375% metro tax) or $85+$3.71 for a total of $88.71. Previously this year there was no sales tax for this type of purchase. Now that we are entering the holiday season, it is important for both consumers in the New York State area and clothing/footwear merchants to understand this change.

The Details
Beginning October 1st, 2010, New York State repealed its 4% sales tax & .375% metro tax exemption for clothing & footwear items that cost less than $110. However, those local jurisdictions & cities that enacted a sales tax exemption for this type of purchase in the past will remain in effect. This means that New York City clothing purchases under $110 will remain exempt from the 4.5% local tax. If it is more than $110 per item or pair, then the purchase will be subject to the full state & local tax of 8.875% (4%+4.5%+.375%). Below, we have provided an interactive table for you to review the current sales tax in your county for clothing & footwear goods under $110. All counties with sales taxes in the 4% range are ones in which the local tax remains exempt.

What Does This Mean For Shoppers?
New York State shoppers that are purchasing $110 or less on clothing or footwear items will be subject to a 4% state sales tax rate. For jurisdictions in which the local sales tax remains in effect (i.e. New York City), make sure that merchants are just charging you state sales tax for purchases under $110. If you purchased an item prior to October 1st and returned it after October 1st, make sure the merchant does not include the additional sales tax for the change. You are not liable for it in exchange situations around those dates.

What Does This Mean For Merchants?
Merchants better update their billing & bookkeeping applications to account for this change if they haven’t already done so. They can potentially run into significant issues for collecting the wrong amount of state or local sales tax from their customers.

Most of even the most basic payment & bookkeeping applications allow merchants to implement rules to account for purchases at different prices & dates. Contact your provider immediately for instructions on how to make this change.

New York Sales & Use Tax Rates On Clothing and Footwear

Tax Jurisdiction (County)	Tax Rate
Albany	8%
Allegany	8.5%
Broome	4%
Cattaraugus	8%
Cayuga	8%
Chautauqua	4%
Chemung	8%
Chenango	4%
Clinton	8%
Columbia	4%
Cortland	8%
Delaware	4%
Dutchess	8.125%
Erie	8.75%
Essex	7.75%
Franklin	8%
Fulton	8%
Genesee	8%
Greene	4%
Hamilton	4%
Herkimer	8.25%
Jefferson	7.75%
Lewis	7.75%
Livingston	8%
Madison	4%
Monroe	8%
Montgomery	8%
Nassau	8.625%
New York City	4.375%
Niagara	8%
Oneida City (Madison County)	6%
Oneida	8.75%
Onondaga	8%
Ontario	7.5%
Orange	8.125%
Orleans	8%
Oswego	8%
Otsego	8%
Putnam	8.375%
Rensselaer	8%
Rockland	8.375%
St. Lawrence	7%
Saratoga	7%
Schenectady	8%
Schoharie	8%
Schuyler	4%
Seneca	8%
Steuben	8%
Suffolk	8.625%
Sullivan	8%
Tioga	4%
Tompkins	8%
Ulster	8%
Warren	7%
Westchester	7.375%
Mount Vernon	8.375%
New Rochelle	8.375%
White Plains	8.375%
Yonkers	8.375%
Wayne	4%
Wyoming	8%
Yates	8%

This information is based off of Publication 718-C, "Sales & Use Tax Rates on Clothing & Footwear," issued by the New York State Department of Taxation & Finance & effective October 1, 2010

More Sales Tax Questions?