Baker Looks to Create Permanent Tax Holiday for Massachusetts

BOSTON — Governor Charlie Baker has filed a $610 million economic development bill that includes a proposal to create a permanent sales tax holiday for Massachusetts shoppers.

Retailers have long pushed for a permanent tax-free weekend. Lawmakers have occasionally voted to approve a single weekend tax holiday, but have shied away from making it permanent, pointing in part to the loss of revenue to the state.

A proposed question on the November ballot would circumvent lawmakers and require the state to designate a weekend in August of each year as a sales-tax free weekend for most items.

The same question would also lower the sales tax from 6.25 percent to five percent.

The Republican governor made a similar proposal last year, but Democratic legislative leaders failed to get behind the proposal.