CARMEL – Putnam County shoppers are getting a break on their clothing purchases resulting from county lawmakers providing an exemption from sales tax for certain clothing and footwear purchases.
However, the bottom line has resulted in a decline in sales tax revenue for county coffers.
Commissioner of Finance Michael Lewis presented his monthly sales tax report to members of the legislature’s Audit Committee Wednesday evening indicating $6.5 million in sales tax collected in April is down by $70,000 from April 2023.
March sales tax revenue also plummeted by $310,000 from $7.9 million in 2023 to $7.6 million in March 2024.
Beginning on March 1 and continuing through March 1, 2026, all clothing and footwear, in addition to items used to make repairs to clothing sold for less than $110 per item, is now exempt from the county’s four percent sales tax in addition to the .38 percent MTA tariff.
The items are already exempt from the four percent state sales tax.
Committee Chairman Joseph Castellano said Putnam “has now joined New York City and nine counties across the state which have opted into the program.”
He said the “decision provides the potential for much greater financial relief to Putnam residents as a result of the 2018 U.S. Supreme Court decision which cleared the way for online sales tax.”
The implementation of the sales tax exemption was introduced by County Executive Kevin Byrne during his annual budget address.
