Worcester, Mass.—The Worcester Regional Chamber of Commerce announced today its support for the “Sales Tax Holiday.” State legislators have consistently supported these efforts. The “holiday” grants consumers relief from the 6.25% sales tax on goods purchased during the designated day or weekend during the month of August. During the designated “holiday” sales tax would be suspended on purchases up to $2,500 (this has been the benchmark set in legislation from prior years).
“Eliminating the sales tax on consumer goods for one weekend generates significant sales for our retailers and small businesses during the summer,” stated Timothy P. Murray, President and CEO of the Worcester Regional Chamber of Commerce. “The extra revenue generated by these businesses and the additional economic impacts created by having a designated day where the sales tax is waived on certain purchases outweigh any loss of revenue by the Commonwealth. I encourage our regional delegation and the legislature as a whole to create another ‘Sales Tax Holiday’ for 2015 and continue their support for our retailers and small businesses.”
It is reported that in ten of the last eleven years, 2009 being the exception, the legislature has granted a “Sales Tax Holiday” and the benefits in additional consumer spending has been widely beneficial to small businesses. One of the intents of the sales tax relief is to encourage consumers to make those larger purchases during a time when they could save the expense of the sales tax. The Retailers Association of Massachusetts recently published survey results estimating the economic benefit to be roughly $168 million. This was a calculation of sales, additional salaries for increased shift workers to accommodate increased consumer traffic, and ancillary economic spending.