Mon, Jul 06 2009

Published: July 22, 2008 06:33 am    PrintThis  

State reps sound off on sales tax holiday

By Edward Mason and Joe O'Connell
Staff writers

BOSTON — A weekend sales tax holiday in Massachusetts next month has regained favor in the Legislature, though several North Shore lawmakers aren't necessarily fired up about the prospect.

"I am not an overzealous supporter," Rep. John Keenan, D-Salem, said. "I have a friend who owns a bike shop, and he says when he has a sale for 10 or 15 percent off, he gets less people than for the sales tax holiday. I think people think they are getting back at the state."

Still, Keenan said he is likely to vote for the tax-free holiday.

Rep. Mary Grant, D-Beverly, is not as excited about the holiday this year as in the past and remains undecided how she'll vote.

"For people, of course, it would feel great," Grant said, "but we need to think about stabilizing our budget."

Grant voted against the tax-free holiday last year, but for it the previous year.

Lawmakers this week will take up suspending the 5 percent sales tax on Aug. 16 and 17. The holiday is back on the agenda now that House Speaker Salvatore DiMasi, who was against it, is behind it.

It also has the support of Gov. Deval Patrick and Senate President Therese Murray, increasing the likelihood it will pass.

"If it comes to me, I will sign it," Patrick told reporters yesterday.

Under the plan, for those two days the state will not collect the sales tax on most items selling for $2,500 or less. It covers personal, not business, purchases. It does not include meals, gas or utilities, car or boat purchases, or telecom services. A DiMasi spokesman said the bill could be voted on tomorrow.

House Minority Leader Bradley Jones Jr., R-North Reading, filed the bill the Legislature will consider. With lawmakers raising cigarette and corporate taxes, Jones said the holiday gives consumers a badly needed break.

"It's an important thing to do to reach out to people who are having a tough time making ends meet," Jones said.

The plan has a measure of enthusiastic bipartisan support on the North Shore, as well.

"I plan on voting for it," said Rep. Lori Ehrlich, D-Marblehead. "I think it's a great idea. I know there is a tradition in Massachusetts for this."

This year will be Ehrlich's first time voting on the holiday that, if it passes this year, will be the fifth consecutive time Massachusetts has forgone the sales tax on a summer weekend.

Rep. Joyce Spiliotis, D-Peabody, also plans to vote for the holiday.

"I think it's good for business and for consumers, especially this year," Spiliotis said.

But Rep. Ted Speliotis, D-Danvers, is reticent about the tax holiday.

"I think it is sort of a good boost for retailers," Speliotis said, "but people aren't screaming for it. Part of the meaning has gone away from it because people are doing more shopping online."

The success is questionable, said Noah Berger, executive director of the Massachusetts Budget and Policy Center. Studies show people put off purchases for that weekend, and retailers hold back discounts.

Moreover, while $16 million doesn't sound like a lot out of a $28 billion budget, Berger said it could be used to double what the state spends on worker training.

"I don't think this is a good idea, generally," Berger said.

DiMasi was skeptical of the virtue of another tax holiday earlier this year as troubling economic news bubbled up. But that was before June revenue figures showed collections ahead of expectations for the year.

His spokesman, David Guarino, said that and consultations with other representatives and business leaders convinced him to take up the measure.

"He was concerned in the past, obviously, but he knows this will help retailers and consumers at a time when both are hurting and could use a shot in the arm," Guarino said. "He feels that the state can afford to help consumers and retailers this year."

Jones said having DiMasi on board is critical.

"The fact that the speaker is behind it means it has a very good chance of getting through," Jones said. "It's the difference between happening and not happening."><p>

Note: This article has been corrected to say Rep. Mary Grant voted against the sales tax holiday last year and for it the year before.

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