July 8, 2010

State Representative Allen McCarthy yesterday joined his colleagues in the Massachusetts House of Representatives in approving an amendment that would allow a state sales tax holiday on August 14th and 15th of this year to encourage consumers to shop at local businesses across the state.

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. 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.