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June 22, 2017

Worcester Chamber supporting sales tax holiday

Massachusetts should hold a sales tax holiday this summer but reject a tax on sugary drinks, a Worcester Regional Chamber of Commerce official told the state legislature this week.

In a letter to state legislators, chamber general counsel and director of government affairs W. Stuart Loosemore said that holding a sales tax holiday this summer will benefit retailers and other businesses across Massachusetts. Citing a survey from the Retailers Association of Massachusetts, Loosemore said that the tax holiday has the potential to generate $168 million in total economic impact.

“For many retailers, the sudden rush of consumer spending, during traditionally their slowest sales season, makes a substantial contribution to their economic survival,” Loosemore wrote in the letter.

During the sales tax holiday, the state waives the 6.25 percent tax on purchases up to $2,500. No holiday was held last year because of slower-than-expected tax collections, and although the state is in a similar situation this year, Governor Charlie Baker has said he would consider holding a holiday anyway, according to the State House News Service.

Several bills from House lawmakers propose bringing it back. The Retailers Association of Massachusetts is pushing for it, saying businesses can’t afford to go another year without a sales tax holiday.

“In an era when more financial and regulatory hurdles are placed in front of small businesses, the tax-free weekend not only provides a financial benefit but also shows these companies that the state values and appreciates their contributions to the community,” said Loosemore.

In a separate letter, Loosemore said that the chamber opposes a bill that would place a 24-cent tax on 12-ounce cans of soda in an effort to promote healthier alternatives. For powdered drink mixes, taxes would be higher because they’d be applied on a per-ounce basis once the drink is mixed.

The bill would substantially drive up costs for soda manufacturers, Loosemore said. Christopher Crowley, an executive at Polar Beverages in Worcester, also testified against the bill this week. Polar recently invested $10 million in a new can line and water treatment systems, which could become obsolete under the legislation, Crowley told the State House News Service.

“This further drives up the cost of doing business and negatively impacts jobs and economic development,” said Loosemore.

Sen. Jason Lewis and Rep. Kay Khan filed the bill, which has the potential to generate $368 million. Khan and Lewis have proposed using the money to find children’s health initiatives, according to the State House News Service.

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