The amendment is part of an economic development bill passed by the House that would streamline economic development agencies, make Massachusetts more attractive to businesses and repeal the state’s medical and pharmaceutical gift ban.
The amendment passed by a vote of 134-13.
“Allowing a sales tax holiday will increase spending at Massachusetts stores and businesses at a time when businesses across the state are struggling to make ends meet,” House Speaker Robert A. DeLeo said. “The House has once again voted to stimulate economic growth in our commonwealth.”
“While I am pleased the taxpayers will feel a tiny bit of temporary relief, we still need to do much more as a legislative body to make the Commonwealth of Massachusetts a more cost-friendly place to live, work and own a business,” said House Minority Leader Bradley H. Jones, Jr. “I hope the Legislature will build off this small success and tackle the real issues residents and business owners are grappling with.”
“The state has experienced positive revenue intakes over the past several months and hopefully this signifies a reversal of the economic downslide,” said Representative Costlelo. “The sales tax holiday will put more people to work, save consumers money, and increase sales for retailers in August, which is historically one of the slowest months for consumer spending.”
The amendment requires that the commissioner of revenue certify the amount of sales tax forgone as well as the amount of new revenue raised from personal and corporate income taxes and other sources as a result of the sales tax holiday. This certification must come by the end of this calendar year.
The sales tax holiday applies to retail sales excluding any single item priced higher than $2,500. The sales tax holiday does not apply to gas, steam, electricity, motor vehicles, motorboats or meals.