Great offers even though Mass Tax Free Weekend 2016 cancelled.
For the first time in several years, there won’t be a Mass Tax Free Weekend in 2016.
Massachusetts shoppers have become accustomed to getting a break from the state’s sales tax, but it won’t be happening this year.
Even though the state has said no to a tax-free weekend this summer, Many retailers are taking a pro-active approach to making sure they get as many customers as they can to come through their doors this weekend.
The Massachusetts sales tax is 6.25 percent.
So why is the tax-free weekend not happening this summer? State tax collections are down and legislators said that this is not the year to cost the state even more in lost revenue with a tax-free weekend. Full details.
The sales tax holiday was first started in 2004. It’s been a tradition over the years. The last time it was not offered was in 2009 and that was was also due to declining state revenues.
Source. Local Massachusetts retailers offering discounts despite no tax-free weekend this year.
Massachusetts Sales Tax Holiday 2015 Report:
Based on our analysis of the available data, DOR estimates that the amount of forgone sales tax revenue was approximately $25.51 million. DOR estimates that this forgone revenue had no impact on the MBTA State and Local Contribution Fund, but impacted the amounts going to the School Modernization and Reconstruction Trust Fund ($4.08 million). Further, DOR estimates that the revenue impact on the Convention Center Fund was slightly higher than $34,500. The remainder of the revenue impact of the sales tax holiday was a revenue loss from the General Fund. The DOR also estimates (although with less certainty) that the indirectly raised revenues (income, corporate, and other) due to increased economic activity was around $2.5 million.
