Does Massachusetts sales tax free holiday weekend boost businesses?
BOSTON - In the dog days of summer, Massachusetts shoppers can expect some relief when it comes to their wallets.
The sales tax-free weekend is coming up on Saturday, August 12 and 13. But do shoppers actually plan their purchases around this so-called holiday?
"What makes it work is that it brings consumers when they normally wouldn't shop," said Jon Hurst, President of the Retailers Association of Massachusetts.
The association compared the turnout to Black Friday.
"It really creates a business type of weekend, expenditures in the half a billion dollar range," Hurst told WBZ-TV.
This weekend, the state will waive the 6.25% sales tax on most items under $2,500.
"I don't have big purchase to make, so not having a sales tax isn't that big of deal for me," said Mira Kelly-Fair of Allston.
Others say with inflation, consumers are paying more attention to their spending.
"I think families especially must anticipate it and if you need a dryer, you're going to wait if you can wait. I would," said Nancy Vanzant of Brookline.
But does simply waiting to make a purchase help a retailer overall?
The DC-based think tank Tax Foundation describes the annual sales tax holiday as "ineffective", writing in a statement, "...instead of increasing purchases, consumers simply shift the timing of purchases they were already going to make. For most who shop during sales tax holidays, the exemptions simply provide a modest and unexpected benefit for doing something they would have done anyway."
The Retailers Association argues the incentives gives a boost to small businesses during the slow summer months.
"It's all the mom and pops," Hurst said. "They are in a routine. For some of them, those two days really are the majority of the sales in the entire month of August."
Whether you plan to shop or not, this holiday isn't likely to go anywhere anytime soon.
"I think it's an important holiday and one that we'll continue to recognize," Gov. Maura Healey said.
There are some exceptions to the incentive.
Here's a list of what doesn't qualify:
- Meals
- Motor vehicles
- Motorboats
- Telecommunications services
- Gas
- Steam
- Electricity
- Tobacco products
- Marijuana or marijuana products
- Alcoholic beverages, and
- Any single item whose price is more than $2,500.
For more information, visit the state's website.
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