Would A Two Month Sales Tax Holiday Make You Smile?
How do you feel about a two-month sales tax holiday? The Baker-Polito Administration is filing legislation to establish a Sales Tax Holiday for the months of August and September. This plan aims to support Main Street businesses and local economies and promote economic growth and opportunity as the Commonwealth continues to recover from the impacts of the COVID-19 pandemic.
State tax revenues for Fiscal Year 2021 continue to significantly exceed projections, with revenues to date 14.9% above benchmark. Strong revenues across the board have allowed the Commonwealth to grow the size of the Stabilization Fund and be poised to end the fiscal year with a significant surplus for the FY21 budget. As a result, the Administration is proposing to support the Commonwealth’s taxpayers and downtown economies by designating the entire months of August and September as sales tax-free.
Governor Charlie Baker said,
“A two-month sales tax holiday will provide a boost to Massachusetts’ taxpayers and Main Street economies as we continue to recover from COVID-19, Massachusetts’ economic recovery is off to a good start, but it’s crucial that the Commonwealth takes action now to spur more economic activity in communities and support taxpayers. Thanks to stronger than expected tax revenues, the Commonwealth has managed to grow the Rainy Day Fund to a balance higher than it was at the beginning of the pandemic, and we can also afford to return these tax dollars to our residents and small businesses.”
Lt. Governor Karyn Polito said,
“We recognize that many residents, families, and small businesses continue to face challenges related to the COVID-19 pandemic,” “As a result of the Commonwealth’s strong revenue performance, we are proposing to extend the annual sales tax-free weekend to two months to help support small and local businesses throughout Massachusetts and power our economy forward.”
We will have to wait and see if everyone jumps on board and this happens.
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