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-   -   LBS charges sales tax on cycling clothing under $50 in NYC (http://www.bikeforums.net/northeast/915655-lbs-charges-sales-tax-cycling-clothing-under-50-nyc.html)

devilrider 09-30-13 01:34 PM

LBS charges sales tax on cycling clothing under $50 in NYC
 
some local bike shops (bicycle habitat, piermont, ridebrooklyn, maybe more) are charging sales tax on clothing that cost under $50. why is this? did the tax exemption expire? is cycling specific clothing not exempt? look at your receipt, visit their online stores to see.

tested: REI, Paragon Sports, EMS. they don't charge tax on clothing under $50.

mulveyr 09-30-13 03:23 PM

Quote:

Originally Posted by devilrider (Post 16118129)
some local bike shops (bicycle habitat, piermont, ridebrooklyn, maybe more) are charging sales tax on clothing that cost under $50. why is this? did the tax exemption expire? is cycling specific clothing not exempt? look at your receipt, visit their online stores to see.

tested: REI, Paragon Sports, EMS. they don't charge tax on clothing under $50.

According to http://www.tax.ny.gov/pdf/publicatio...es/pub718c.pdf , they probably should be charging tax since dedicated bikewear can be easily put into the "Athletic equipment" clothing catagory that is supposed to be taxed.

cdale56 10-01-13 05:18 PM

They do whatever they want. In Connecticut if you buy a banana in a grocery store it is not taxed, as food is not taxed in that state. If you buy a banana in Dunkin Doughnuts, they charge sales tax and if you look it up, it is considered "ready to eat" food and thus is a taxable item.

Bezalel 10-09-13 05:28 AM

Quote:

Originally Posted by mulveyr (Post 16118502)
According to http://www.tax.ny.gov/pdf/publicatio...es/pub718c.pdf , they probably should be charging tax since dedicated bikewear can be easily put into the "Athletic equipment" clothing catagory that is supposed to be taxed.

But http://www.tax.ny.gov/pdf/memos/sales/m06_6s.pdf states that "Athletic or sport uniforms or clothing (but not equipment such as mitts, helmets and pads)" are exempt. It also lists "Shoes (ballet, bicycle, bowling, cleated, football, golf, jazz/dance, soccer, track, etc.)"

partykingwes 10-14-13 09:25 AM

Quote:

Originally Posted by cdale56 (Post 16122751)
They do whatever they want. In Connecticut if you buy a banana in a grocery store it is not taxed, as food is not taxed in that state. If you buy a banana in Dunkin Doughnuts, they charge sales tax and if you look it up, it is considered "ready to eat" food and thus is a taxable item.

I'm a lawyer with consumer protection class action experience, licensed in NJ and PA. If somebody came into my office and told me they were taxed on fruit or clothing, I'd look into it and likely file a class action to disgorge the store of the tax they collected (and likely never paid) on exempt items and either have it refunded to those who paid it or donated to charity (in the event the people who paid the tax couldn't be found).

trek330 10-17-13 08:46 AM

That's why I hardly ever enter those LBS's.I buy online and fix the bike myself.

rebel1916 10-17-13 09:56 AM

I know in NJ that athletic equipment is taxed, and clothing that is dedicated to athletic use (football pants, shorts with chamois) are often considered athletic equipment.

Rootman 10-17-13 10:00 AM

Quote:

Originally Posted by cdale56 (Post 16122751)
They do whatever they want. In Connecticut if you buy a banana in a grocery store it is not taxed, as food is not taxed in that state. If you buy a banana in Dunkin Doughnuts, they charge sales tax and if you look it up, it is considered "ready to eat" food and thus is a taxable item.

I've hear the smae thing for bagels in other states. You can sell them UNcut tax free but the moment you cut them they are taxable because they are "ready to eat". So you either charge the tax or provide the customer with a knife or bagel cutter and run the risk of lawsuit when someone cuts their palm or slices off a finger. Makes perfect sense to me :)

wilfried 10-22-13 01:10 PM

Quote:

Originally Posted by devilrider (Post 16118129)
tested: REI, Paragon Sports, EMS. they don't charge tax on clothing under $50.

The cutoff for tax on clothing is $110, and I wasn't charged sales tax at REI for an $80 item. Nor was I charged at EMS.

walrus1 10-22-13 03:27 PM

I've never been forced to pay sales tax on any clothing except a leather jacket I bought here in NYC. I'd contact the bike shop and ask what's up with this.


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