BOSTON – The Massachusetts Retailers Association has estimated that statewide sales for the tax holiday this past weekend may have exceeded the organization’s $500 million forecast, The Sun Chronicle reported Wednesday.
The sales tax holiday weekend was the first for the Bay State since 2008 – back when the sales tax had been 5 percent rather than 6.25 percent.
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The Massachusetts Department of Revenue estimates a loss of between $20 million and $25 million in potential revenue over the two-day holiday. According to The Republican, though, the department expects to collect $4.6 billion for the year, in which case the loss would only represent about 0.5 percent of the total.
“Sales were strong and people were in a great mood,” Kathleen M. Gourde, owner of Cooper’s, a gift and curtain shop in Agawam, Mass., told The Republican.
This year’s holiday did not apply to cars, utilities, restaurant meals and items costing more than $2,500. It was also the first sales tax holiday since Massachusetts began applying sales tax to alcohol sold in package stores.
“It was a pretty successful weekend; we exceeded all sales expectations by far,’ Steven M. Thibault told The Republican. “It just goes to show you how much people resent paying the sales tax, especially on alcohol.”
The state’s Department of Revenue communications director Robert R. Bliss noted that the exact impact of the weekend on state revenue won’t be known for months as retailers continue to forward tax payments to the state.
