Summary of Bill S 1442

Bill Number: S 1442

Title: Increases the tax exemption amount on clothing and apparel items from one hundred ten dollars to two hundred fifty dollars

Status: Referred to Budget and Revenue

Introduced: January 09, 2025

Classification: Bill

Purpose and Intent

The primary purpose of Bill S 1442 is to increase the tax exemption threshold for clothing and apparel items. This legislation aims to provide financial relief to consumers by raising the exemption amount from $110 to $250. By doing so, the bill seeks to alleviate the tax burden on individuals purchasing clothing and apparel, thereby promoting consumer spending in this sector.

Key Provisions

• Increased Tax Exemption: The bill proposes to raise the tax exemption amount on clothing and apparel items from $110 to $250. This change means that consumers will not have to pay sales tax on clothing purchases up to the new exemption limit.

• Scope of Applicability: The exemption applies to a wide range of clothing and apparel items, making it beneficial for consumers across various demographics.

Impact

• Consumers: The increase in the tax exemption amount is expected to benefit consumers, particularly families and individuals who frequently purchase clothing. This change could lead to significant savings for those buying multiple items or higher-priced apparel.

• Retailers: Retailers may see an increase in sales as consumers take advantage of the higher exemption limit. This could stimulate economic activity within the clothing retail sector.

• State Revenue: While the bill aims to provide consumer relief, it may also impact state revenue from sales tax collections. The extent of this impact would depend on consumer behavior and the overall economic environment.

Procedural Aspects

• Legislative Action: The bill was introduced on January 09, 2025, and has been referred to the Budget and Revenue committee for further consideration.

• Related Legislation: This bill is related to prior-session bills S 9541 and S 1221, as well as a companion bill A 1707, which may address similar issues regarding tax exemptions on clothing.

Conclusion

Bill S 1442 represents a significant change in the tax exemption policy for clothing and apparel, aiming to enhance consumer purchasing power. As it moves through the legislative process, stakeholders, including consumers and retailers, will be closely monitoring its progress and potential implications for the economy.