Baker proposes 2 full months of sales tax holiday this year

Massachusetts

BOSTON (WPRI) — The sales tax holiday weekend in Massachusetts may be extended to not one, but two entire months this year.

Governor Charlie Baker filed legislation Wednesday to establish both August and September 2021 as sales tax holiday months.

“A two-month sales tax holiday will provide a boost to Massachusetts’ taxpayers and Main Street economies as we continue to recover from COVID-19,” he said. “Massachusetts’ economic recovery is off to a good start, but it’s crucial that the Commonwealth takes action now to spur more economic activity in communities and support taxpayers.”

The administration said fiscal year 2021 tax revenue collections are nearly $4 billion, which is about 15% above benchmark, plus the state was awarded significant federal resources which helped reduce pressure on the operating budget.

“Thanks to stronger than expected tax revenues, the Commonwealth has managed to grow the Rainy Day Fund to a balance higher than it was at the beginning of the pandemic, and we can also afford to return these tax dollars to our residents and small businesses,” Baker added.

In 2018, the governor signed legislation making the annual sales tax holiday permanent.

On Wednesday, the Department of Revenue designated the annual tax-free days as August 14 and 15.

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