HUMASON SUPPORTS PASSAGE OF AUGUST SALES TAX HOLIDAY
Don Humason, Jr., Westfield’s State Representative, and the House Republican caucus succeeded today in their effort to ensure that Massachusetts consumers will enjoy a weekend of sales tax free shopping this summer.
After rare but vigorous debate, the Massachusetts House of Representatives approved legislation Thursday that would encourage shoppers to get out and go shopping during what is normally a slow time for shopkeepers by giving consumers a break from the state’s 5 percent sales tax on August 11 and 12.
Earlier this month, when it was reported that Democrat legislative leaders were doubtful about reinstituting the tax holiday again this year, Representative Humason and the House Republicans wrote a letter to the House speaker and Senate president strongly urging them to take action.
That pressure worked. Just over one week after the letter was delivered, the Joint Committee on Revenue and the House Ways and Means Committee gave the tax holiday bill a favorable report and sent it to the House floor for debate. The legislation is also expected to win approval in the Senate.
“Making Massachusetts more affordable to our citizens and residents is the centerpiece of the Republican legislative agenda,” Humason said. “This sales tax holiday is just one way we in state government can help give people incentives to support Bay State businesses during the summer dog days, just in time for back-to-school shopping season.”
Under the legislation approved, shoppers on August 11 and 12 will not have to pay the state’s 5 percent sales tax on purchases under $2,500. The bill does not cover meals taxes, gas or utility taxes, motor vehicle or boat sales, or telecommunications services.
The Republican caucus tried to amend the bill to make the sales tax holiday a permanent annual event, but the proposal was rejected by the Democrat-controlled House despite the fact that this will be the fourth annual state sales tax holiday held in Massachusetts since 2004.
“Sales tax holidays are important to the economic success of our state and its residents, and I am disappointed that my Democratic colleagues refused to make it a permanent event in Massachusetts,” said House Minority Leader Brad Jones, R-North Reading. “Tax-free retail days have a positive impact on the quality of life for Massachusetts residents who struggle with affordability issues in our state every day.”
“Despite what the pro-tax crowd may say, what the Commonwealth may lose in sales and use taxes over the weekend will be offset by increased meals taxes, gas taxes, and employment taxes paid into the state coffers,” Humason said. The last sales tax holiday in August 2006 resulted in several hundred million dollars in increased sales and cost the state only $16 million in lost sales-tax revenue.
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Representative Don Humason and his new aide Sarah Latour may be reached at their Westfield District office, 64 Noble Street, Westfield, MA 01085, 568-1366. Their Boston address is State House Room 542, Boston, MA 02133, (617) 722-2803. Email address: Rep.DonaldHumason@Hou.state.ma.us
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