Massachusetts Forgoes $21 Million for Sales Tax Holiday
- Jan 5, 2012 | Susan McLain
Massachusetts’ sales tax holiday occurred August 13 and 14, 2011. “The sales tax holiday legislation waived the sales tax on otherwise taxable non-businesses purchases made on August 13 and 14, 2011, except purchases of telecommunications services, gas, steam, electricity, motor vehicles, motorboats, meals, and any single item the price of which was in excess of $2,500.”
The Massachusetts Revenue Impact Analysis reports that the sales tax revenues foregone “…did lower the amounts going to the School of Modernization and Reconstruction Trust Fund ($3.4 million), and Commonwealth Transportation Fund ($1.3 million). The impact on the Convention Center Fund was less than $19,400. [And] [t]he remainder of the impact was on the General Fund.”
The Massachusetts state sales tax rate is 6.25% “…on the purchase prices of many tangible goods, utilities, and telecommunications services, and on meals served at restaurants.”
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