If you select "Turbotax will calculate the tax" it could say, but doesn't "using the formula provided in the NYS IT-201 instructions (see link)." That's an enhancement that is worth requesting to be made, although I can't guarantee the programmers will place a priority on it.
If you want to calculate the number yourself, Turbotax tells you that you need form ST-140 and the instructions to form IT-201 and provides a link to the NYS tax home page.
On part 1 of page 2 of form ST-140 you list all clothing purchases costing less than $110 per item and enter the corresponding tax rate from the chart in the instructions. The chart does indeed indicate that some counties exempt clothing under $110 from local taxes as well, in which case you use zero as the tax rate. See page 4 here. <a rel="nofollow" target="_blank" href="
https://www.tax.ny.gov/pdf/current_forms/st/st140i.pdf">https://www.tax.ny.gov/pdf/current_forms/st/...>
So if you follow ST-140 and the instructions you get the correct result.
The bottom line is that items under $110 are never completely exempt, as you seemed to indicate in your question and first comments, and Turbotax doesn't have a bug because it is following the official instructions from the IT-201 form.
