Retail Council of NYS Responds to Governor's Budget Proposal

• by Retail Council of New York State

ALBANY, NY (12/17/2008)(readMedia)-- Retail Council of New York State President and Chief Executive Officer James R. Sherin today issued the following statement regarding Governor Paterson's FY 2009-2010 budget proposal:

"The retail industry has been hit hard in this economy, and we see the impact every day when our customers have to watch every dime that they spend. Or when they don't come in at all.

"If the retail industry had its choice, we wouldn't collect sales tax on anything. But because sales tax is such a huge component on the state's fiscal calculus, we know that never would be a possibility. Sadly, even though our sales tax structure already demands a lot from the shopper, this budget puts unprecedented and new tax and fee burdens on the consumer. Whether through reimposition of the clothing and footwear sales tax or the effective 26 percent sales tax on soda and soft drinks, through new sales taxes on haircuts and movie tickets and higher taxes when a customer tries to save a few pennies by using a coupon in a grocery store, it's going to cost a lot more to be a New Yorker.

"Retailers are just now beginning to digest the operational problems that these and other tax proposals promise and then inflict on their customers. The bottom line for us, though, is that each one makes New York stores less competitive and more expensive - especially for lower- and middle-income New Yorkers. Now is hardly the time to ask us to tell our shoppers that they have to pay more.

"But if changes must be made, at a minimum, we urge the state to require all counties to participate in the two weeks of sales tax free shopping on clothing and footwear purchases under $500 that this budget proposes. Without full county participation, the true value of these tax holidays is greatly diminished and is available only to some residents. The county 'opt-in' provision has been a problem in the past and will become a major stumbling block to true tax-free shopping opportunities for all New Yorkers."