The state’s 6.25 percent sales tax will be waived on many purchases the weekend of Saturday, Aug. 29 and Sunday, Aug. 30, the Baker administration announced Tuesday.
This summer’s sales tax holiday weekend will take place as retailers regain their footing after weeks of government-forced shutdowns, and Gov. Charlie Baker said he hopes people will take advantage of the tax savings to support local businesses.
“The annual sales tax holiday is an opportunity for us to support small businesses and consumers, and this year, it’s a great way to support our economy that’s been impacted by COVID-19,” the governor said.
“This pandemic has created enormous challenges for the Commonwealth’s small businesses, and the sales tax-free weekend is one way that we can encourage more economic activity to help Main Street businesses and local economies.”
The annual tax holiday, made a permanent fixture as part of a 2018 “grand bargain” law addressing multiple topics, allows shoppers to avoid paying the tax on most retail items – excluding food and drink at restaurants – that cost less than $2,500. The state agrees to give up tens of millions of dollars in taxes in a bid to spur buying and consumer savings.
The law calls for the Legislature by June 15 to choose a weekend in August to designate as the holiday. If legislators miss that deadline or do not act, the Department of Revenue has until July 1 to announce dates for the holiday, as it did Tuesday.