A tax reform panel created by Gov. Cuomo wants the state to tax iTunes and other digital goods — and do away with a popular exemption on clothing purchases.
Our Glenn Blain reports:
The 11-member commission on Tax Reform and Fairness has called for the state to eliminate its popular sales tax exemption on clothing and footwear priced $110, saying such measures were “inefficient mechanisms” to assist low income New Yorkers.
Instead, the commission suggested the state use the money from the restored sales tax – about $800 million – to provide direct tax relief to low and middle income New Yorkers.
The panel also argued the state loses out on $35 million a year by not taxing digital products.
Any move to tinker with the sales tax, however, would likely face stiff resistance among state lawmakers who must run for re-election in 2014.
“We will review the report,” said Michael Whyland, a spokesman for Assembly Speaker Sheldon Silver (D-Manhattan).
The sales tax proposals were among more than a dozen reform options listed in
, which was made public late Thursday.
Another proposal called for the state to scale back its $420 million film industry tax credit, which Cuomo has argued is vital to attracting movie and television productions to New York.
“The commission believes that the credit should be scaled back because it does not appear to pay for itself in its current form,” report stated.
Cuomo administration officials did not immediately comment on the panel’s sales and film tax recommendations.
The governor is expected to review the report and weave at least some portions into his
in January.
Cuomo, in a statement, said the report was another step toward “reversing New York’s negative tax reputation, further improving our business climate and easing the burden on everyday taxpayers.”
Other recommendations made by the panel include easing the estate tax on low and moderate income families and streamlining several sections of the state’s business tax code.
IMAGE: KAY NIETFELD/EPA
