A parent shops for school supplies at a Target store, Wednesday, July 27, 2022, in North Miami, Fla. AP file photo

State Sen. George Borrello wants New York state to increase the tax exemption on clothing and footwear.

Borrello, R-Sunset Bay, introduced S.9541 recently to boost the tax exemption from $110 to $250. Currently, clothing and footwear sold for less than $110 per item or pair and items used to make or repair clothing are exempt from New York state’s 4% sales and use taxes. The exemption does not apply to local sales and use taxes unless the county or city imposing the taxes elects to provide the exemption.

Chautauqua County is one of the counties that also exempts eligible clothing and footwear costing less than $110. Both Cattaraugus County and the cities of Olean and Salamanca collect their 4% sales tax on clothes and shoes sold for less than $110.

“The current tax exemption on clothing and footwear has not been adjusted since 1998, nearly 25 years ago, when it was set at $110,” Borrello wrote in his legislative justification. “Due to the increase in costs to produce these items, as well as the recent jump in inflation, this number should be adjusted to $250 to help our businesses and encourage purchases of these products here in New York state. There is currently no tax on clothing or footwear in Pennsylvania, putting our business and residents at a significant disadvantage.”

Borrello’s legislation has been referred to the Senate Rules Committee for possible discussion when the legislative session begins in January.

Retailers financial forecasts are showing the effects of inflation. Walmart recently noted higher prices on gas and food are forcing shoppers to make fewer purchases of discretionary items, particularly clothing. Best Buy, the nation’s largest consumer electronics chain, cited that inflation has dampened consumer spending on gadgets. Back-to-school shopping is the second-most important buying season for many retailers after the winter holiday season.

According to the Associated Press, a basket of roughly a dozen supply items showed a price increase of nearly 15% on average for this back-to-school season compared with a year ago, according to retail analytics firm DataWeave. The price of backpacks are up nearly 12% to an average of $70, for example.

The AP also reported Mastercard SpendingPulse, which tracks spending across all payment forms including cash, forecasts back-to-school spending will be up 7.5% from July 14 through Sept. 5 compared with the year-ago period when sales rose 11%. For the 2020 back-to-school period, sales fell 0.8% as the pandemic wreaked havoc on schools’ reopening plans and back-to-school shopping.