Illinois had a summer sales tax holiday in 2010.
Advertisement
Barry Steinberg, president and chief executive of Direct Tire and Auto Service, which has four locations in Massachusetts, said he is looking forward to the Legislature passing the 2015 holiday into law. It is popular among consumers, who flock to the stores to purchase furniture, electronics and appliances. Officials hope it will offer relief from construction delays as families prepare to send their children back to school.
Nonetheless, for those of us in the Merrimack and Nashoba valleys, it’s certainly a liberating feeling to thumb our noses at New Hampshire for a weekend. Other states charge different sales tax rates or, as is the case in New Hampshire, no sales tax.
“The bill encourages people to spend locally and to support Massachusetts businesses”, Wagner said. In 2013, the center published a report titled “Economic Analysis of the Potential Effects of a Sales Tax Holiday in Ohio”. Traditionally, this time of the year is among one of the biggest for retailers. However, this year experts predict spending to be down from last year and shoppers to be focused on what they really need.
This weekend there will be no local or state sales tax on clothing and shoes priced at less than $100.
This sales tax holiday will benefit everyone. In most states, the holiday must be approved annually, and practices can vary state to state on whether just state or state and local taxes are suspended.
“They feel a little bit better taking something back from the state – it’s nearly like getting your money back”, he said.
However, despite concerns, the bill still has bipartisan support.
Advertisement
The measure now goes to the Senate, where approval is also expected. However, if someone also bought a $125 piece of clothing, the sales tax would be applied to that piece only. The industry association anticipates retail sales growth of 3.5 percent this year, down from an earlier estimate of 4.1 percent.
