City Council Speaker Gifford Miller called yesterday for additional measures to assist businesses that may be financially hurt during this month’s Republican convention.

In a letter to Governor Pataki and Mayor Bloomberg, the speaker asked for an extension of the weeklong statewide sales tax exemption that will go into effect starting August 30. The proposed extension would only encompass a 31-block area surrounding Madison Square Garden, where businesses are expecting a substantial drop in revenue.

“While the convention is in many ways a boon to the city, we cannot overlook the fact that many New Yorkers – especially small-business owners – will suffer a negative impact as a result of it,” Mr. Miller said.

Mr. Miller cited “unprecedented” security restrictions in place for the convention as just cause for providing additional help to local businesses. Stores and restaurants in the convention area – a retail and commuter hub that encompasses Penn Station and the Garden – are anticipating a difficult week during the convention, when sidewalks will be closed to pedestrians and nearby companies closed or understaffed.

“Anyone who says this area is not going to be impacted by the convention is living in an alternate universe,” Mr. Miller said.

In a statement, the state budget division in Albany rebuffed Mr. Miller’s plan.

“If Gifford were interested in public policy instead of pursuing the rare headline he receives, he would know that the governor cannot act unilaterally on the issue and his requests would require an enactment of a new law by the state Legislature,” said spokesman Ken Brown. “We prefer to work with responsible leaders like Mayor Bloomberg on issues of importance to New Yorkers.”

Responding through a spokesman, Mr. Miller urged Governor Pataki to approve his plan.

“Though the governor may find this to be a surprise, he is actually in a position to push issues through the legislative process. If he were to actually be a leader, he would help us lead the fight for New Yorkers on this issue and have the legislature approve this proposal,” press secretary David Chai wrote in an e-mail.

The sales-tax exemption, which is valid on clothing and footwear valued up to $110, has not encouraged local business owners in the convention area, who are already dreading a loss of revenue during the Republican fete.

“If there’s no customers around it doesn’t really matter if there’s taxes or not,” said Lenny Ramos, manager of RAG clothing store on 34th Street.

Mr. Miller’s proposal was met with some ambivalence.

“It will help. The key word is help. It’s not going to undue the losses that you’re gonna suffer,” Benedetti Shoes owner Sol Khoudari said. Mr. Khoudari added that he is expecting a substantial drop in business during the convention.

Paul Elliott, press secretary for NYC Host Committee 2004, a nonprofit group organizing logistics for the convention, said his group was skeptical of the proposal.

“The central idea behind this proposal is that New York City is going to suffer as a result of the convention, and it is the opinion of the committee that New York City stands to reap a windfall from the convention,” Mr. Elliott said.

NYC Host Committee is projecting the convention’s economic benefit to be upwards of $265 million, according to Mr. Elliott.

Council Member David Weprin supported Mr. Miller’s proposal.

“It will help small businesses,” Mr. Weprin said. “People are worried about security, people aren’t going to be coming in to the city [during the convention].In the case of Boston basically the downtown area was empty. It basically took off the entire week.”

The proposed extension would last until September 13.

In the letter, Mr. Miller also asked Mr. Bloomberg to suspend metered parking in the area for September 4 and 5, as an additional incentive for tourists and residents to shop in the district.

Mr. Bloomberg did not support or oppose the plan, saying Albany would have to decide on the proposals.