State Representative Aaron Michlewitz this week joined his colleagues in the Massachusetts House of Representatives in approving legislation that would allow a state sales tax holiday on August 13th and 14th of this year to encourage consumers to shop at local businesses across the state.
“With folks across the Commonwealth continuing to struggle through the economic downturn, the sales tax holiday will provide relief to consumers while supporting local merchants,†House Speaker Robert A. DeLeo said. “The House has once again voted to stimulate local businesses which keep jobs in Massachusetts.â€
“Keeping local small businesses afloat in these tough economic times is a top priority of mine.†Said State Representative Aaron Michlewitz. “With this tax holiday we are giving some much needed relief to both retailers and to the citizens of Massachusetts.â€
The legislation requires that the commissioner of revenue certify the amount of sales tax forgone as well as the amount of revenue lost from specific government funds into which the weekend’s sales tax revenue would have been deposited.
The commissioner must also certify the amount of new revenue raised from personal and corporate income taxes and other sources as a result of the sales tax holiday. These certifications 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 telecommunications or tobacco products as well as gas, steam, electricity, motor vehicles, motorboats or meals.