New York Gov. Proposes Tax on Luxury Jewelry

New York Gov. David Paterson on Tuesday proposed a sales tax on luxuries items, including jewelry.

Under the proposal, those purchasing jewelry in excess of $20,000 would pay a 5 percent sales tax, according to media reports.

The tax would also be imposed on aircraft costing more than $500,000, yachts costing at least $200,000, cars costing more than $60,000, and furs costing more than $20,000.

The tax proposal is part of the governor’s 2009-10 budget of $121.1 billion proposal, which includes proposed taxes on items ranging from digital downloads to soft drinks to help balance an estimated $15.4 billion deficit for the balance of the fiscal year that ends on March 31, and the next fiscal year, according to media reports.