The Retail Council of New York State Monday reminded shoppers and merchants across the state that the "tax-free week," so popular with back-to-school shoppers every September, will not take place in 2006.

The twice-yearly week-long holidays found New York State removing its four percent sales tax from clothing and footwear costing up to $110 per item. Dozens of local governments covering most of New York usually followed suit, leading to a zero percent sales tax for those items throughout much of the state, during the late-summer and January events.

Instead, New York's 2006-2007 state budget removed the state's four percent levy 365 days a year on clothing and footwear costing up to $110 per item. According to the state's Department of Taxation and Finance, 13 counties and the entire City of New York have joined the state in the everyday exemption.

"Tax-free weeks always were a big hit with shoppers," said Retail Council President and Chief Executive Officer James Sherin. "Retailers enjoyed them, too, because they gave the stores something special to promote twice each year."

"The state changed the rules again this year," he said. "While we welcome the everyday exemption for the state's 4 percent sales tax, we know that the majority of local governments in New York won't be able or willing to sacrifice the revenue to join in on an everyday basis."

Sherin said it will be “particularly frustrating for residents in counties still collecting sales tax when they know that a neighboring county is tax-free.” He said with the price of gasoline as high as it is, “it's that much harder for a family to drive 50 miles to try to save on sales tax during their back-to-school shopping."