For Immediate Release
August 5, 2004
Please Contact: Colin Durrant (617)722-1650 or
Dalié Jiménez, 617-722-1650

Barrios Votes To Give Consumers a Sales Tax Holiday 

Senate Initiative to Spur Retail Sales and Boost Local Economies

State House, Boston – The sales tax holiday that Senator Jarrett Barrios voted to hold on Saturday, August 14 is expected to generate more than $200 million in retail sales. That’s a figure that rivals the top Christmas season shopping days. Waiving the state’s five percent sales tax for a day comes from a Senate initiative included in a $100 million jobs creation bill the legislature passed last fall.

“The past three years of budget cuts and economic strain have left families shouldering the burden of increased housing costs and household expenses. This is an opportunity to give something back to hard working consumers while boosting an industry that employs nearly 600,000 workers,” said Senator Barrios

Lawmakers designated Saturday, August 14 as the sales tax holiday because that’s when a lot of families begin shopping for back to school items. Most purchases under $2,500 will be tax-free, though items, like boats and cars, and meals and gasoline will still be taxable.

“During the worst part of the recession, Massachusetts consumers continued spending. This tax cut allows lawmakers to say thank you to consumers for their continued faith in the Massachusetts economy,” stated Senate President Robert E. Travaglini. “It’s a great day to go out and get those purchases you may have been putting off.”

“Two-thirds of our economy relies on consumers for growth. The Senate leadership understands this economic reality and created this incentive for consumers, promoting economic recovery and expansion,” said Jon B. Hurst, President of the Retailers Association of Massachusetts, which represents 2,500 retailers in over 10,000 locations across the Commonwealth.

New York was the first state to declare sales tax holidays. The one-day tax cut is now offered in Vermont, Connecticut, Georgia, North Carolina, and Florida, among others. The holiday is generally held in August to coincide with back-to-school shopping and encourage retail sales during a typically slow month.

According to the National Retail Federation, the 2002 sales tax holiday in Texas doubled the typical weekend sales figures for an equivalent weekend in August. Some Maryland retailers also experienced a 10% increase in monthly sales during that states sales tax holiday in 2003. A 2002 Pennsylvania sales tax holiday produced a 60% increase in computer sales. Lawmakers and retailers predict Massachusetts will experience a similar economic surge.

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