Hargraves pushes passage of summer sales tax holiday

from the office of State Rep. Robert Hargraves

State Rep. Robert Hargraves and the House Republicans succeeded today in their effort to ensure that Massachusetts consumers will enjoy one weekend of sales tax-free shopping this summer.

The Massachusetts House of Representatives approved legislation today that gives shoppers a break from the state's 5 percent sales tax on August 11 and 12, just in time for back-to-school shopping season. This will be the fourth annual state sales tax holiday held since 2004.

Earlier this month, when it was reported that legislative leaders were doubtful about reinstituting the tax holiday again this year, Robert Hargraves and the House Republicans wrote a letter to the House speaker and Senate president strongly urging them to take action.

Just over one week after the letter was delivered, the Joint Committee on Revenue and the House Ways and Means Committee gave the tax holiday bill a favorable report and sent it to the House floor for debate. The legislation is also expected to win approval in the Senate.

The Republican caucus tried to amend the bill today to make the sales tax holiday a permanent annual event, but the proposal was rejected by the Democrat-controlled House.

"Sales tax holidays are important to the economic success of our state and its residents, and I am disappointed that my Democratic colleagues refused to make it a permanent event in Massachusetts," said House Minority Leader Brad Jones, R-North Reading. "Tax-free retail days have a positive impact on the quality of life for Massachusetts residents who struggle with affordability issues in our state every day."

"I supported the last three sales tax holidays that we have held and continue to support making them a permanent event," said State Representative Robert Hargraves, R-First Middlesex. "My district has the longest border with (sales tax free) New Hampshire in the Commonwealth, which makes the tax holiday especially important to the local businesses I represent."

Making Massachusetts more affordable is the centerpiece of the Republican legislative agenda advanced earlier this year.

Under the legislation approved today, shoppers on August 11 and 12 will not have to pay the state's 5 percent sales tax on purchases under $2,500. The bill does not cover meals taxes, gas or utility taxes, motor vehicle or boat sales, or telecommunications services.

The last sales tax holiday resulted in several hundred million dollars in increased sales and cost the state only $16 million in revenue.