Baker Proposes Two-Month Sales Tax Holiday

HYANNIS – Governor Charlie Baker is filing legislation that would establish a sales tax holiday for the entire months of August and September. 

The plan aims to support local business and promote economic growth as the commonwealth recovers from the COVID pandemic. 

Baker said that the legislation is the result of tax revenues that have exceeded initial projections by almost 15 percent.

Strain on the operating budget has also been alleviated by federal funding including CARES Act dollars, said the governor. 

With the strong revenues, the Commonwealth has grown the size of the Stabilization Fund and is poised to end the fiscal year with a significant surplus for the FY21 budget. 

“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 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.”

Legislative approval is still required for the proposal.

About Grady Culhane

Grady Culhane is a Cape Cod native currently living in Eastham. He studied media communications at Cape Cod Community College and joined the CapeCod.com News Center in 2019.



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