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July 30, 2014

Tax holiday weekend date in limbo

Those counting on a tax break in mid-August still have to wait to find out what day to head to the stores. Both the House and the Senate passed the annual sales-tax holiday, but lawmakers disagree over which weekend in August to forego the state’s 6.25 percent sales tax.

Traditionally, Massachusetts shoppers have respite from sales tax on purchases of less than $2,500 during the second weekend in August. House lawmakers passed an economic development bill designating the third weekend in August as tax-free, while the Senate stuck to the second weekend of the month. Lawmakers negotiating the differences between the two versions of the economic development and jobs bill have not yet come to agreement.

Massachusetts retailers have begun advertising the weekend is coming, without saying when. The uncertainty has some retailers offering deals early, already giving shoppers discounts equal to the state sales tax, according to Jon Hurst, president of the Massachusetts Retailers’ Association.

“It’s really become much more than a two-day event. It is building sales throughout the month,” Hurst said.

Retailers hope lawmakers settle on the second weekend in August because that is typically a slow time for stores, Hurst said. If pushed back another week, it bumps into back-to-school shopping, according to Hurst.

The sales tax holiday has been held almost every year since 2004. It was skipped in 2009 during the recession.

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