SENATOR MICHAEL R. KNAPIK
BOSTON – Massachusetts shoppers are one step closer to another summer tax-free weekend.
House and Senate lawmakers agreed to the bill during an informal session today.
Under the legislation, the sales tax holiday would be scheduled for Aug. 10 and 11 and will apply to retail sales excluding any single item priced higher than $2,500. It also excludes vehicles, motor boats, tobacco, meals and utilities.
Gov. Deval Patrick has said he expects to sign the bill, although he said the state will have to come up with a way to offset the lost revenue, which has averaged about $20 million in past years.
Sales-tax holiday weekends have become something of a tradition in Massachusetts during the dog days of summers as lawmakers hope to give store owners and consumers a boost during a typically sluggish shopping season. The sales tax holiday has occurred in each year since 2004 except 2009.
“I am very happy to support this initiative,” said Knapik. “I know it has been beneficial to my constituents and their families who get a chance to save some of their hard-earned money, especially during back-to-school time. It is also helpful to area businesses which have traditionally seen enormous increases in transactions on these days.”
Support for a tax holiday this year has been growing recently, but solidified when reports released this week by the Department of Revenue indicated tax collections were up 4.8 percent from last year, and totaled $627 million above projections.
Last year’s tax-free weekend produced nearly $400 million in sales.
“The tax holiday is a great way to give the economy a boost during an otherwise slow shopping season. This is also an effective means for Massachusetts to appeal to consumers from neighboring states that may not be afforded the same benefits,” said Knapik.
