Though lawmakers will move forward with an ongoing tradition of suspending the state’s sales tax for a single weekend during the summer, the Senate’s president announced Monday that her colleagues will not consider any plan to extend the temporary tax break.
After leaving the second “leadership meeting” held with Gov. Maura Healey and House Speaker Ron Mariano in as many weeks, Senate President Karen Spilka told reporters during a brief press conference outside her Beacon Hill office that lawmakers had settled on the date of the holiday, though any suspension will still need to be made official by actual legislation.
“We will be doing a sales tax holiday August 12th, 13th, that weekend,” Spilka said. Mariano did not voice any opposition to the dates.
When asked if she and her colleagues would consider expanding the two-day pause on the state’s 6.25% sales tax, she said that “no, we’re not there yet.”
“But we will be doing the weekend,” the Democrat from Ashland said.
First tried for just one day in 2004 but made into an annual full weekend holiday in 2018, the law aims to boost consumer spending for one weekend a year at the expense of millions in sales tax revenue.
There are some exclusions to the holiday, which only applies to purchases less than $2,500.
Purchases of cars, boats, meals, utilities, marijuana, tobacco and alcohol are still taxed. Gasoline is not subject to the sales tax and so is not affected by the holiday. Business purchases are still taxable.
Residents who want to do their shopping online may do so as well, provided their purchase is made during the sales tax holiday weekend.
A single item that costs $2,500 would see a tax savings of $156.25. An item costing even one dollar more would be subject to that tax amount, plus the 7 cents for the extra dollar.
Clothing under $175 is generally not taxed, but during the holiday more expensive duds up to $2,500 will be untaxed.
Rentals of up to 30 days that are normally subject to sales tax are tax-free if paid for during the holiday. This does not include car and boat rentals.
Massachusetts retailers must, by law, participate in the holiday if they are open for business during the scheduled weekend. Any purchase made during that weekend that is charged a sales tax must see the tax refunded by the retailer, according to the Department of Revenue.
