House Overwhelmingly Approves Summer Sales Tax Holiday
Bipartisan effort will provide shoppers with two-day sales tax break
BOSTON For the fifth consecutive year, the House overwhelmingly voted today to give consumers a two-day sales tax break and provide a shot-in-the-arm to retailers and the economy.
The bill designates August 16th and 17th as the summer sales tax holiday weekend, exempting single item purchases of $2,500 or less from the state's 5 percent sales tax. The Department of Revenue estimates, over the last two years sales tax holidays have increased overall economic activity by $3.2 million.
"Creating an incentive for consumers to shop during a traditionally slow sales period is good for business and our economy. This legislation is a win-win for buyers and sellers alike. A summer sales tax reprieve will boost sales for retailers and deliver discounts to consumers," said Representative John P. Fresolo (D- Worcester).
"Over the last four years, the economic stimulus generated by the sales tax holiday has delivered a much-needed revenue boost to Massachusetts businesses during the dog days of summer. When businesses experience a growth in sales, the overall economic impact on the Commonwealth is great and I am pleased to see this bill pass with overwhelming support again this year," said House Speaker Salvatore F. DiMasi (D-Boston).
""By offering a weekend long sales tax holiday, we are giving taxpayers a much needed break. It's as much a psychological thing as it is economic. We remind people that we are looking out for them and are sympathetic to the tough times our constituents are facing. I am proud that we were able to accomplish such a beneficial piece of legislation in a bipartisan manner," said House Minority Leader Bradley H. Jones, Jr. (R-North Reading).
"The sales tax holiday is important to Massachusetts consumers as well as businesses. We have seen over the last four years the sales tax holiday's repeated success. With prices rising across the Commonwealth, the tax-free weekend is something we can do to help consumers as well as boost the economy," said Representative John Binienda (D-Worcester), Chairman of the House Committee on Revenue.
The exemption does not apply to automobile, motor boat, meals and tobacco product sales as well as telecommunication services and gas, steam and electricity. The bill now proceeds to the Senate. It has the public support of both Senate President Murray and Governor Deval Patrick.