Lawmakers give initial approval to August sales tax holiday

BOSTON --Consumers would get another chance to take part in a tax-free shopping spree next month under a bill approved Wednesday by lawmakers.

The bill would suspend the state's 5 percent sales tax on purchases of $2,500 or less for the weekend of Aug. 12-13. The goal is to help give the state's economy a boost during one of the slowest months of the year.

House and Senate lawmakers approved similar versions of the legislation Wednesday afternoon and evening, but must work out the differences before the bill can be sent to Gov. Mitt Romney, who supports the holiday.

The first tax-free day in August 2004 generated $400 million in sales while costing the state about $10 million in lost tax revenues.

Lawmakers expanded the tax-free shopping day last year into an entire weekend so observant Jews who can't shop on Saturdays could also take advantage of the holiday.