Baker-Polito Administration Proposes Nixing Sales Tax in August and September
The Baker-Polito administration is filing legislation to establish a sales-tax holiday for the months of August and September. This plan aims to support Main Street businesses and local economies and promote economic growth and opportunity as the Commonwealth continues to recover from the impacts of the COVID-19 pandemic. State-tax revenues for fiscal year 2021 continue to significantly exceed projections, with revenues to date 14.9% above benchmark. Strong revenues across the board have allowed the Commonwealth to grow the size of its Stabilization Fund and be poised to end the fiscal year with a significant surplus for the FY21 budget. As a result, the Administration is proposing to support the Commonwealth’s taxpayers and downtown economies by designating the entire months of August and September as sales-tax-free.