New York City drops sales tax on clothes, shoes

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    NEW YORK, Sept. 1 (Xinhua) -- As of Saturday, people shopping in New York will no longer have to pay the city taxes on purchases of clothes and shoes.
    However, they still have to pay 4.375 percent in state tax on items at or above 110 U.S. dollars.
    Prior to the new measure, which was proposed by Mayor Michael Bloomberg and came into effect Saturday, shoppers had to pay 4 percent in city sales tax and 4.375 in state sales tax when they buy clothes and shoes priced at 110 dollars and over.
    Bloomberg proposed the measure as part of a 1.3-billion-dollar tax relief package that also includes cutting property taxes.
    The sales tax break was approved by the state and signed into law on June 29.
               
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