Massachusetts Legislature approves Aug. 16-17 sales tax holiday

By Edward Mason
Staff Writer

July 23, 2008 05:15 am

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BOSTON — Massachusetts lawmakers overwhelmingly approved a weekend sales tax holiday for Aug. 16 and 17.

The House voted 139-15 and the Senate 31-6 to suspend the 5 percent sales tax on most items up to $2,500 on those days. Cars and boats are excluded. So is the sales taxes on meals, gas, utilities, telephone services and tobacco.

All North of Boston lawmakers voted in favor except Rep. Mary Grant, D-Beverly.

Gov. Deval Patrick has said he'd sign the bill.

Supporters, including Rep. Bradley Jones Jr., R-North Reading, argued the tax holiday would give consumers welcome relief in a tough economy, as well as help out struggling retailers.

The sales tax holiday appeared dead until late last week, when House Speaker Salvatore DiMasi dropped his opposition. He was concerned the state could not afford the lost revenue during a period of economic uncertainty, but changed his mind after a positive June tax collection report.

DiMasi's support was critical.

Rep. Michael Costello, D-Newburyport, voted against the holiday when Republicans put it to a vote in April. The only Democrat to vote for it was Rep. Linda Dean Campbell, D-Methuen. When DiMasi and Revenue Committee Chairman Rep. John Binienda, D-Worcester, backed the plan, Costello and all but 15 Democrats dropped their skepticism.

"I followed them on this matter," Costello said.

Sen. Steven Baddour, D-Methuen, said the holiday would help consumers and businesses near sales tax-free New Hampshire.

"This has an enormous positive impact on border communities," Baddour said. "People like shopping on a day when they can beat the system."

"Creating an incentive for consumers to shop during a traditionally slow sales period is good for business and our economy," said Rep. Anthony Verga, D-Gloucester. "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."

This is the fifth straight year Massachusetts lawmakers voted for a sales tax holiday. Shoppers saved $58.3 million since the first holiday in 2004. The state Department of Revenue estimates consumers will save another $16 million this year.

Senate Republicans were rebuffed when they tried to make the tax holiday permanent.

Edward Mason may be contacted at emason@gloucestertimes.com.