You misread the form.
First, the form is only used for NY residents who don't file a tax return. If you file a tax return, the use tax is reported on your tax return and there are no minimums.
Second, the $110 limit only applies to eligible clothing and footwear -- eligible clothing and footwear under $110 is subject to local sales tax but not state sales tax, so the effective rate is 3-4% instead of 7-8%. However the rate for all other items is the full sales tax rate.
Third, turbotax exactly follows the official instructions for the NYS-201 form. You can claim no untaxed purchases, or you can use the standard method, or you can do the exact calculation. The standard method uses a formula to estimate your taxes owed based on your income, at a rate of 0.0058% (which likely is some kind of estimate of the amount of untaxed purchases an average person makes as a percent of their income.) If you prefer to use the exact method, Turbotax does not perform the calculation and tells you to use form ST-140 yourself and then enter the result in the program.
