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Hearing on sales-tax exemption for used clothing draws support from thrift operators and opposition from League of Cities
Summary
House Bill 1428 would exempt sales of used clothing at thrift stores from state sales tax. Nonprofit thrift operators told the committee the exemption would benefit low-income shoppers; the North Dakota League of Cities opposed the bill citing lost sales-tax revenue for cities and an uneven playing field for merchants.
Representative Steve Vetter introduced House Bill 1428 to the House Finance and Taxation Committee, proposing a sales-tax exemption for sales of used clothing by thrift stores operated by nonprofit corporations. Vetter said the change would lower costs for low-income shoppers and seniors on fixed incomes and noted several other states have partial or full exemptions for clothing.
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