State Senator George Borrello is calling for an increase in sales tax exemption on clothing and footwear.
The senator has introduced a bill to increase the cost of clothing and footwear exempt from the 4% state sales tax from $110 to $250.
He said with inflation affecting prices of gas and other items that he “drafted this bill to ease the burden for folks just a little bit.” He also cited competition from Pennsylvania, which has no state sales tax on clothing or footwear, as another reason for the increase as a way to keep tax dollars in New York.
The current New York State tax exemption on clothing and footwear has not changed since 1998.
According to a Bankrate survey conducted by YouGov from July 13 to July 15, 41% of those planning to do some school shopping said inflation will change how they shop.
The National Retail Federation’s annual back-to-school survey also shows people are having to adjust their back to school shopping habits, where 38% of consumers said they’re cutting back in other areas to cover these costs. Just under 20% said they are working overtime or working more hours to cover school-related costs.
The exemption would not apply to local sales and use taxes unless the local county or city provides an exemption. Borrello’s bill was referred to the Senate Rules Committee for consideration and would likely not be considered until the State Legislature’s session resumes in January 2023.
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