Massachusetts Sales Tax Holiday Faces Growing Opposition

Date: July 27, 2015

Legislative Leaders Express Dissatisfaction With Tax Reprieve As Budget Tightens

Though the sales tax holiday has been around for a decade in Massachusetts, the Boston Globe reported that the tax reprieve is facing “a growing chorus” of opposition from “budget watchdogs” and legislators who are concerned that missing the 6.25% tax for a weekend is harming the state at a time when the budget is tightening. Senate President Stanley Rosenberg said of the tax, “I’ve always been cool to it, but I’ve lined up every year and voted for it.” Meanwhile, House Speaker Robert DeLeo expressed concerns about the tax’s effects on the state’s budget, but said, “it has become so popular with the consumers and especially the retailers as well, who contact their local reps and senators, that I think it’s somewhat difficult to try to put the brakes to it.” According to Department of Revenue estimates, in 2014 the state sales tax holiday amounted to $25 million in savings for Massachusetts consumers. Retailers Association of Massachusetts president Jon Hurst argued, “Everybody who runs for reelection every other November says they are pro-small business and pro-Main Street,” and that supporting the sales tax holiday is “the best indicator of whether people support their small businesses and support their consumers.”

What Happens Next

The Globe said although legislative opposition to the sales tax holiday appears to be growing, it’s unlikely this year’s holiday on Aug. 15 and 16 would be scrapped. However, the tax holiday’s “fate in future years is increasingly uncertain.”

What This Means For Small Businesses

Small business owners across Boston want efficient ways to boost revenue. One of the ways to help generate additional revenue is through a sales tax holiday, which may encourage the area’s consumers to make purchases at local small businesses. Repealing the state sales tax holiday would be bad for many business in Boston and across the state.

Additional Reading

NFIB previously detailed tips to help small businesses capitalize on sales tax holidays.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

Related Content: Small Business News | Boston, MA | Economy

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