Retailers can’t get, or give, tax break

Many retailers, who have traditionally drawn big crowds for the yearly mid-August event, took matters into their own hands this year and began advertising that they would pay customers’ sales tax, which rose from 5 to 6.25 percent on Aug. 1.

But startled store owners have been scrambling to change their plans after learning that state law makes their gesture illegal.

“We will not be conducting mall-to-mall searches, but if we see people advertising, we will talk to them,’’ said Department of Revenue spokesman Bob Bliss.

State tax law reads, in part, that “it is unlawful for any vendor to advertise or hold out or state to the public or any customer, directly or indirectly, that the tax or any part therefore will be assumed or absorbed by the vendor.’’

The obscure provision is suddenly relevant this year, because state leaders did away with the sales-tax holiday, saying the Commonwealth needs the tax revenue.

“I can’t believe it,’’ said Robert Bendetson, owner of Cabot House, a furniture company, which has been running newspaper ads (including in the Globe) promising consumers: “We’ll pay your sales tax.’’

“I’m just trying to save customers money. It doesn’t take any money out of the state,’’ said Bendetson, describing past sales tax holiday weekends as “one of the prolific sales events of the year.’’

“But I’ll have to change it,’’ he said. “Look, I’m not trying to break any laws.’’

Steven Sheinkopf - owner of Yale Electric, which also tried to lure customers by offering to pay their tax - said they are looking for another way to pass along the savings to their customers.

“We’ve changed our ads,’’ he said. “They should be concerned that the sales tax gets paid. All the other stuff, the obscure laws and all of it, just makes business harder for the rest of us. It’s sad because we just increased the sales tax and more customers will look at New Hampshire or the Internet. “

It could have been different.

A state representative, alerted to the problem by a company in his district, tried to push through, in time for this weekend, a change in the law that would have allowed retailers to pay the sales tax for customers.

“The legislation would prime the pump during the slow months of August, ’’ said the bill’s author, state Representative John Quinn, Democrat of Dartmouth. “The Department of Revenue shouldn’t care who pays the sales tax, as long as it is being paid.’’

He urged House leaders to fast track the bill, but was rebuffed, he said.

Without House Speaker Robert A. DeLeo’s blessing, the bill faces an uncertain future. Though it has been endorsed by 49 other House members and senators, who signed on as cosponsors, it could be months before the bill comes up for a vote.

DeLeo would not say why he opposed the measure, referring questions to state Representative Jay Kaufman, Democrat of Lexington, who is chairman of the Revenue Committee.

In an e-mailed statement, Kaufman said the bill, “while laudable in its attempt to stimulate retail sales, concerns me because it could disproportionately favor big business retailers over small business ‘Mom & Pop’ stores. These big-box retailers have the balance sheets to absorb the tax, which small business retailers do not. In this economy, this is hardly the time to put small businesses at such a distinct disadvantage.’’

But state Representative Martin J. Walsh, Democrat of Dorchester and one of the cosponsors of Quinn’s bill, said the opposition doesn’t make sense.

“In the past, I didn’t support the tax-free holiday, because we lost revenue,’’ Walsh said. “But in this case, we would be getting the revenue, and retailers would be offering a great service to their customers.’’

He continued: “It would have been a win-win. Unfortunately, because the legislation didn’t go through, it was a lose-lose for consumers and the retailers.’’