For the period October 1, 2010, through March 31, 2011, there will be no state and MCTD sales and use tax (sales tax) exemption for clothing and footwear. Accordingly, for the period beginning October 1, 2010, and ending March 31, 2011, sales tax vendors must collect and remit the state’s 4% sales tax and, if applicable, the state-imposed 3/8% sales tax in the Metropolitan Commuter Transportation District (MCTD) on sales of clothing and footwear, regardless of the price.
Then, for the period April 1, 2011, through March 31, 2012, clothing and footwear sold for less than $55 per item or pair
will be exempt from the state’s 4% sales tax and the state-imposed 3/8% sales tax in the MCTD.
Finally, on and after April 1, 2012, the original less-than-$110-per-item clothing and footwear exemption will be restored. It will apply to the state’s 4% sales tax and also the 3/8% sales tax in those localities in the MCTD that provide the less-than-$110 exemption.