Retailers Report Robust Sales For Tax-Free Weekend
Still waiting for the final sales tallies, retailers on Tuesday reported a robust tax-free holiday weekend. Unlike previous years, this year’s tax-free holiday shopping spree began before last weekend with many retailers offering pre-weekend sales throughout the month. “There were so many promotions where you got the reductions, but you technically paid the sales tax,” said Jon Hurst, president of the Retailers Association of Massachusetts.
“It was a great thing for the state because the state got increased revenue,” Hurst said. “And the consumer was still saving the similar amount of money off their final bill.”
The perennial tax holiday suspends the 6.25-percent sales tax on items that cost up to $2,500, excluding boats, cars and meals. Last year, consumers saved more than $23 million during the tax-free weekend.
Critics of the tax holiday say it merely shifts consumer spending patterns while denying the state of needed revenues. Hurst argued the annual summer spending spree creates shopping momentum and spurs impulse buying.
In addition, Hurst estimated twice as many people in the retail industry worked last weekend, when stores were competing for customers with nice summer weather.
WBJ Web Partners
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