Beginning Friday, the state's exemption on clothes and shoes under $110 goes away as part of the budget lawmakers passed last month in order to raise revenue. As our Sabina Kuriakose reports, businesses and customers are less than thrilled.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

ALBANY, N.Y. -- "I probably won't buy as much or spend as much," said shopper Ashley Barr.

"I live on one paycheck, so yes, it's going to hurt," added Patricia Roberts, another customer at Target in Latham.

It's not sticker shock, but you can expect to pay more the next time you hear that register ring. That's because on Friday, the state will roll back a tax exemption on clothing and shoes under $110, and kick back in a 4 percent tax on those purchases in an effort to balance the state budget.

"We need to keep our prices where they are, which means it comes out of our bottom line, which means customers will be purchasing less merchandise," said B. Lodge and Co's owner Jack Yonally.

At Lodge's in Albany, Yonally is worried the tax will hurt business. Customers are already spending less, and he's concerned they'll now tighten their belts even more.

"We've already seen it with the economy. People have less disposable income," said Yonally.

"I just don't think it's fair," said Barr. "It's going to hurt us in the end. No one is going to go out and spend money."

"I don't want to pay more than I have to," said another shopper.

The state budget division says reinstating the tax will raise $330 million toward closing the state's more than $9 billion budget gap. But businesses and consumers still say they're in a tough spot.

"When you have a family that you're taking care of and all the stuff that you do need, it's crazy. It's a lot of money out of people's pockets," said Roberts.

The tax hike will last only six months. The exemption will kick back in by April for clothing under $55.