Two recently-approved tax cuts went into effect on April 1. All clothing and footwear sold for less than $110 per item (or per pair of footwear) is now exempt from the combined 8.875 percent State and City sales tax. Previously, clothing sold for more than $55 was subject to the 4% sales tax. The exemption will remain in effect year round, and it includes most fabric, thread, yarn, buttons, snaps, hooks, zippers and similar items used to make or repair exempted clothing. The repeal of the MTA payroll tax, which also took effect on April 1, means that businesses with an annual payroll of less than $1.25 million will be exempt from paying the MTA payroll tax, and businesses with a payroll of less than $1.75 million will have their MTA payroll tax rates reduced. In total, the MTA payroll tax will be repealed for 80 percent of businesses in New York State.