The Future of Massachusetts Tax Free Weekend
For the past two years, and in 2009, lawmakers have canceled the tax free weekend due to a budget shortfall, estimating that the state loses about $25 million in tax revenue during that weekend. However, Representative Tricia Farley-Bouvier has filed legislation that would enact an annual Sales Tax Holiday for the state of Massachusetts, but only for small businesses.
Farley-Bouvier, who represents the Third District, along with Representative Aaron Vega of Holyoke, are on the quest to designate an annual statewide sales tax holiday for small businesses. The democrat says that her legislation is a compromise between supporters and detractors of tax holidays, in that it focuses solely on small businesses. The petition defines small business retailers as 'an independently owned business with no more than five locations in the commonwealth, and no more than 200 employees.'
The proposed holiday would take place across a two day weekend in August, to be determined by the Commissioner of Revenue by July 15th of that calendar year. Farley-Bouvier says she is constantly hearing from small businesses about how impactful the tax free weekends are for their profits.