BOSTON (AP) – House lawmakers agreed on Wednesday to extend the state’s tax holiday, making the tax-free shopping day in August into an entire weekend so observant Jews who can’t shop on Saturdays can also take advantage of the holiday.
“It’s only fair to give them a day where they could participate,” said Rep. John J. Binienda, D-Worcester, a chairman of the Joint Committee on Revenue.
Earlier this month, the House had approved Saturday, Aug. 13, as the state’s tax holiday, and sent it on to the Senate.
But after observant Jews complained that they had missed out on the benefits of the holiday last year, because they do not shop on their Sabbath, Senators opted to make it a two-day affair instead. The House voted 145-7 to approve that change on Wednesday.
After a procedural vote by the Senate, the bill will land on Gov. Mitt Romney’s desk. His spokeswoman, Julie Teer, said the governor is supportive, but wants to review the legislation.
Binienda said the state would probably lose about $15 million in sales tax over the two days, but would make it up on taxes on other goods, such as gasoline and meals.
On the holiday, shoppers don’t have to pay the state’s 5 percent sales tax on purchases of $2,500 or less. The goal is to help give the state’s economy a jolt during a slow shopping month.
In last year’s first tax-free day, shoppers spent about $400 million, more than the shopping frenzies on the Saturday before Christmas or the Friday after Thanksgiving.
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