The majority of local state representatives voted in favor of increasing the state's sales tax from 5 percent to 6.25 percent.
Only Republican Brad Hill of Ipswich objected to the measure, which Democrats project will generate an additional $900 million a year to help balance the state budget.
"At the end of the day, it just appeared to be the fairest way to go," Democrat John Keenan of Salem said.
The increase restores millions of dollars in state aid to cities and towns, makes it possible for the state to avoid raising tolls, keeps the income tax at its current level and means a gas tax hike will not happen, he said.
"It's fairer than increasing the gas tax," Democrat Joyce Spiliotis of Peabody said. "That would hurt people a lot more."
Gas is an unavoidable need for the majority of consumers, she said.
The sales tax includes exemptions for staples such as food and clothing.
The 108-51 vote late Monday gave lawmakers a veto-proof majority. Gov. Deval Patrick threatened a veto earlier in the day because lawmakers had failed to put an ethics, pension or transportation reform measure on his desk.
Of the money raised by the sales tax increase, about a third, $275 million, would help the state's deteriorating transportation system.
Another $200 million would be returned to cities and towns in local aid.
"To me, it's unfathomable that you would even consider doing this at this time," Hill said.
It puts an extra burden on retailers and restaurants struggling to survive, he said, and encourages consumers to spend what money they're able to part with in New Hampshire, a state without a sales tax.
"It hurts the people we're trying to protect," Hill said.
The proposed reform of the state's transportation and pension systems combined with expanded gaming and various Republican proposals, including expediting the sale of surplus land and instituting state employee furloughs, would save the state $1 billion, Hill said. Those steps should be taken before a tax increase is considered, he said.
But Democrat Lori Ehrlich of Marblehead said the House has already made $1.2 billion in budget cuts next year, and a revenue source needed to be identified to provide relief for cities and towns faced with laying off teachers, police officers and firefighters.
"We can't reform our way out of this economy," she said.
The business community strongly opposed a higher sales tax, but Spiliotis predicted the increase would have a modest impact.
"I don't think it's going to hurt too many businesses," she said.
Ted Speliotis, D-Danvers, pointed out that the sales tax has not been raised in 34 years. And of the 45 states with a sales tax, Massachusetts is the only one that provides exemptions.
"I'm pleased that it's the sales tax and not the gas tax," he said.
The money raised is needed to help cities and towns confront unprecedented economic challenges, he said.
Instead of a 25 percent to 30 percent reduction in state aid, municipalities can expect roughly 10 percent less.
"It was not a pleasant vote," Democrat Mary Grant of Beverly said. "Nobody wanted to do this, but you do have to be responsible."
Material from The Associated Press was used in this report.
How they voted
Lori Ehrlich, D-MarbleheadYes
Mary Grant, D-BeverlyYes
John Keenan, D-SalemYes
Brad Hill, R-IpswichNo
Ted Speliotis, D-DanversYes
Joyce Spiliotis, D-PeabodyYes
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