N.Y. State May Increase Tax on Luxury Goods
Albany, N.Y. New York Gov. David Paterson unveiled a 2009-2010 fiscal year state budget of $12.1 billion on Tuesday, and proposed an additional sales tax of 5% on luxury goods costing more than $20,000. The news was announced one month earlier this year in order to deal with the economic crisis.
The tax increase would also impact purchases of cars costing more than $60,000, vessels (including but not limited to yachts) costing more than $200,000 and non-commercial aircrafts costing more than $500,000.
The budget is designed to fill a $15.4 billion deficit over two years and includes a variety of tax increases, as well as layoffs and a reduction in school aid.
Paterson also proposed an elimination of the sales-tax exemption on clothing and footwear less than $110, replacing it instead with a twice-a-year tax holiday during which clothing and footwear under $500 would not be subject to sales tax.
Staples revamps in-store marketing
Staples has signed a multi-year deal with News America Marketing to improve in-store marketing, according to the reports.
News America will create coupon machines, floor ads and other in-store marketing products in more than 1,500 Staples stores nationwide. The changes will go in effect next month.
RadioShack becomes sole owner of Mexico unit
FORT WORTH, Texas RadioShack announced that it has become the sole owner of Radio Shack de Mexico, S.A. de C.V. after purchasing the interest in the joint venture held by Grupo Gigante, S.A.B. de C.V. for approximately $43 million in cash. Radio Shack de Mexico has approximately 200 RadioShack branded stores throughout Mexico.
Commenting on the acquisition, chairman and ceo Julian Day said, “Radio Shack de Mexico represents an attractive growth platform for our company. This is a business we know well through our experience with the joint venture and the RadioShack brand has strong equity among consumers in Mexico.”
RadioShack will operate the stores and related general office, service center and distribution center in Mexico as a wholly-owned subsidiary. All of the stores and support facilities are leased locations. The stores average approximately 1,300 square feet and are primarily located in shopping centers. Radio Shack de Mexico employs approximately 1,200 people.