Senator Joyce, Representative Galvin Vote for Sales Tax Holiday

Senator and State Representative (D-Canton) voted on Thursday to approve a sales tax holiday weekend for August 13 and 14. This is the sixth year the Commonwealth will provide a sales tax exemption for two days and the seventh year with at least one sales-tax-free day.

“I’m pleased that this will offer some relief to small business owners and hard-working families struggling in this economy,” said Senator Joyce.

“The summer sales tax holiday weekend helps consumers and local businesses in these difficult economic times,” stated Representative Galvin.

Tax collections for all of Fiscal Year 2011 were $20.5 billion, which is $2 billion more than the Fiscal Year 2010 collections and $723 million above benchmark. Also, revenue for the month of June came in at $2.1 billion – a 5.2 percent increase from June 2010 and $48 million above the monthly benchmark.

The Senate has consistently supported a sales tax holiday since it began seven years ago. As in previous years, the sales tax holiday will apply to purchases under $2,500. Additionally, it excludes vehicles, motorized boats, tobacco, meals and utilities.

According to the Massachusetts Department of Revenue, the sales tax holiday has saved consumers nearly $100 million since 2004. The legislature has passed it every year since then, except in 2009, when the recession was at its worst.

Gas, steam, electricity, motor vehicles, motorboats, meals, and single items priced higher than $2,500 are excluded from the tax holiday.