Shopping Tax To Hit Working Moms Where It Hurts

EAST HARLEM (CBS 2) -- Many families in the tri-state area are already pinching pennies to keep the clothes on their backs. Now, New York State is tacking on a sales tax on clothes and shoes that used to be tax free -- and some parents are outraged.

In all, some $330 million is expected to be generated by the state's upcoming sales tax on clothes and shoes.

But as CBS 2's Hazel Sanchez reports help for the state is a big hurt for families like Janell Mitchell's in East Harlem.

"That's who it's a strain on -- the working families," Mitchell said.

Working part time for minimum wage, Mitchell, a single mother, spends about $2,000 a year on clothes for her three children, ages 9, 5 and 18 months.

Starting in October, after back-to-school shopping, New York will add a state sales tax on individual clothing items and shoes less than $110. That would amount to nearly $100 more in taxes for the Mitchell family's clothing budget, money this mom said she doesn't have.

"To some people it doesn't make a difference, but when you're on a budget and you have to get things in quantities, you feel the difference," Mitchell said.

"It's horrible, especially because I have two kids," added mother Iris Rodriguez. "So it's going to be tough for me."

"It's not even like they're taxing luxuries. They're really taxing what would be necessities," another woman said.

The state tax exemption will return for clothes and shoes less than $55 in April. The full $110 exemption would return in April of 2012.

Many families said they'll have to make a lot of changes in order to cope.

Diane Fezza is a nurse and a single mother of four ages 13, 17 and 21-year-old twins.

"Just cut back. What are you gonna do? You just have to cut back. Maybe work a little more overtime to get a little more money," Fezza said.

"Maybe just like before I'll get on the PATH train and go to Jersey to where it's no tax and it seems like it comes out cheaper," Mitchell added.

And if people choose to shop in tax free states now, tax experts say the damage to NY's economy will already be done when the exemption returns in 2012.