House Approves Sales Tax Holiday for August 12-13

BOSTON, MA – The House of Representatives overwhelmingly approved legislation giving shoppers a sales tax break in August for the third year in a row, State Representative John Keenan (D-Salem) announced today.

The legislation designates August 12th and 13th as a sales tax holiday weekend, exempting single item purchases of $2,500 or less from the state’s 5% sales tax. Similar measures in the last two years aimed at stimulating the state’s economy saved consumers $25 million and netted retailers $900 million. Revenue loss incurred by the Commonwealth was offset by spikes in meals and gas tax collections.

“If you’re in the market for a new television or you’re getting ready to make a back-to-school purchase, circle your calendar and prepare to save for the third consecutive year,” said Representative Keenan, “The sales tax holiday lets consumers keep their hard earned dollars and gives retailers a shot in the arm during a historically slow sales period. It’s a win-win situation for buyers and sellers alike. I would especially encourage individuals who need to replace appliances or other items following the recent flooding to take advantage of this window.”

The exemption approved in the House by a vote of 145 to 7 does not apply to automobile, motor boat, meals and tobacco product sales as well as telecommunication services and gas, steam and electricity. The bill is expected to win approval in the Senate and reach the Governor’s desk shortly thereafter