Sales Tax Holiday Weekend Set for
August 14 & 15, 2021
With the recent adoption of a resolution by the Legislature, and a declaration today by Governor Charlie Baker, the 2021 Sales Tax Holiday Weekend has now been confirmed for August 14th and 15th.
The MA Department of Revenue (DOR) will issue guidance for retailers in the coming weeks regarding the operation of the holiday weekend. While the guidance is expected to be similar to previous years, members are encouraged to closely review any and all releases from the DOR. As soon as it is issued, the guidance and a list of Frequently Asked Questions (FAQ’s) will be available on the RAM website.
Gov. Baker Proposes a Two Month Sales Tax Holiday
Gov. Baker today filed legislation to establish a Sales Tax Holiday for the months of August and September. The plan aims to support Main Street businesses and local economies and promote economic growth and opportunity as the Commonwealth continues to recover from the impacts of the COVID-19 pandemic. State tax revenues for Fiscal Year 2021 (FY21) continue to significantly exceed projections, with revenues to date 14.9% above benchmark.
“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,” said Governor Charlie Baker. “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. 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.”
"A two-month sales tax holiday is a smart, exciting, and progressive economic incentive that will benefit our small businesses and our consumers just when they need it,” said RAM President Jon Hurst. “Consumers represent 70% of our economy, and it is important that we encourage them to invest in our Main Streets, small businesses and communities.”
The Governor’s proposed legislation would need to be enacted by the Legislature to become law. Prospects for the two-month holiday are at best, uncertain. Independent of this two-month expansion proposal, the annual Sales Tax Holiday weekend is now set for August 14-15, 2021.