House Gives the OK to Tax Free Holiday in August

By CHARLENE ARSENAULT (Patch Staff)

Historically, the Legislature has waited until shortly before the pending sales tax holiday to approve it, and this year is no different. Mark school shopping down on your calendar, and perhaps plan on getting that new stove or power drill. And then go out to eat.

On Thursday, the Legislature approved a bill creating a sales tax holiday for Massachusetts on Aug. 15 and 16. This bill is designed to provide relief to consumers and increase sales for local businesses.

“The sales tax holiday is a shot in the arm for individuals, families and businesses alike,” said House Speaker Robert A. DeLeo, D-Winthrop, in a statement. “While the Massachusetts economy is continuing to improve, folks are still facing tough fiscal times. By passing this legislation, we reaffirmed our commitment to helping hardworking families, particularly as the school year begins.”

“The sales tax holiday has become an annual event in our state and today the Legislature voted to give a small tax break to consumers and businesses alike,” said Senate President Stanley Rosenberg, D-Amherst, in the announcement. “I hope that we will soon review this policy to determine if, after more than a decade, the desired impact is being achieved.”

As in previous years, the sales tax holiday will apply to purchases under $2,500. It excludes vehicles, motorized boats, tobacco, meals and utilities.

The bill now goes to Governor Charlie Baker for his signature.