Representative Daniel Webster (R-Pembroke) joined his colleagues in the Massachusetts House of Representatives in approving legislation that would allow a state sales tax holiday on August 13 and 14 of this year to encourage consumers to shop at local businesses across the state.

The sales tax holiday applies to retail sales excluding any single item priced higher than $2,500. The sales tax holiday does not apply to telecommunications or tobacco products as well as gas, steam, electricity, motor vehicles, motorboats or meals.

Two related Republican amendments, however, were quashed by House Democrats. The first would have made the sales tax holiday a permanent annual event and the second would have reduced the states sales tax rate to 5 percent over the next two years. The sales tax rollback would have begun next July, having no impact on the current budget by gradually reducing the rate to 5.625 percent in fiscal year 2012 and 5 percent in fiscal 2013. The fact that tax revenue has increased by roughly $2 billion indicates this would have been a good time to begin implementation of a rollback, after replenishing the rainy day account with last year’s surplus.

Webster stated, “Time and again, during difficult economic times, my Democratic colleagues enact tax increases as a temporary means to curing state budget deficits. Yet, when budget surpluses reappear, they refuse to roll back taxes.” He further stated, “It disturbs me greatly that Massachusetts had over a $700 million surplus at the end of the fiscal year and we are unwilling to provide tax relief to struggling families.”

If you have any questions, please call Rachel Michael at Representative Webster’s State House Office at 617-722-2487 or e-mail Rachel.Michael@mahouse.gov.

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