A study commissioned by the Retails Association of Massachusetts revealed that the State’s tax holiday generated $168 million and the cash flow led to an additional estimate of 600 private jobs.
If not for the tax holiday, the Association claimed businesses would not have anywhere near the sales they had last year.
Reportedly, the tax-free weekend generated a significant amount of employment over time and the savings from customers was often pumped back into the local economy through purchases of many items.
A drop in August sales is expected and a lot of business will go to New Hampshire, the Association claims.
They also feel that not having the tax-free weekend sends a bad message to other companies contemplating moving into the State.
Apparently, the reason for not having the tax-free weekend, is because the State couldn’t make up $26 million in lost revenue. A hard to debate decision, since tax collection fell short of fiscal 2016 projections and lower expectations are expected for fiscal 2017.
Based on fiscal 2017 tax exemptions, a gloomy picture has been painted, depicting the possibility of the tax-free weekend in the coming year.
However, things could change!