Tax & Accounting Blog

Massachusetts House Votes Down Meals Tax Holiday

Indirect Tax, ONESOURCE, Sales and Use Tax May 16, 2012

 On April 23rd, the Massachusetts House of Representatives voted to reject a budget amendment that would have allowed for a Meals Tax Holiday in the state from October  7th – 12th.  Should this amendment have passed, diners would have the opportunity to save 6.25% on their purchases at restaurants throughout the state during this time.  As usual, supporters claimed it would encourage spending and help local business, while detractors said that spending is simply shifted, and the state cannot afford the lost revenue.  In previous years, retailers within the state have participated in a Back-to-School Tax Holiday in August, which has been a point of contention for supporters of the Meals Tax Holiday that they are not going to have one themselves.