Business

Likelihood of summer sales tax holiday in Massachusetts fading

Stoughton-8/11/2007- Phil Szabla(cq) from Needham carrys a box and an order slip in his mouth as he makes his way through a mob of shoppers in the warehouse area of the Ikea store, as took advantage of the tax-free holiday weekend in which there is no sales tax on items below $2500. Boston Globe staff photo by John Tlumacki (metro) / / library tag 08122007 John Tlumacki / The Boston Globe

By Associated Press

BOSTON (AP) — Chances for a sales tax holiday in Massachusetts this summer are dimming.

No action has been taken on legislation that calls for suspending the state’s 6.25 percent sales tax for one weekend next month.

Massachusetts has held sales tax holidays in all but one year since 2004, and they are popular among shoppers and merchants alike. But officials estimate it could cost the state $28 million in sales taxes it would otherwise receive.

That assessment has taken on additional significance in light of new and lower estimates for how much the state will receive in total tax collections this fiscal year.

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The Retailers Association of Massachusetts says sales tax holidays help the state in other ways, including higher payroll taxes as stores beef up staffing to accommodate the additional shoppers.