Marblehead Businesses Support Sales Tax Holiday

Local business owners are hoping to see the benefit of a sales tax holiday, which would suspend the 6.25 percent state sales tax on goods and services up to $2,500 the weekend of Aug. 14 and 15.

A bill to bring back the sales tax holiday was approved last week by the state House of Representatives, although Senate passage of the legislation is uncertain at this point.

Gov. Deval Patrick has said he must weigh the impact of lost tax revenue before he would sign the bill.

Last year, the state's fiscal crisis prompted legislators and the governor to forgo a sales tax holiday, which had been enacted for each of the previous five years. The state also raised the sales tax last year, from 5 percent to 6.25 percent.

That decision didn't please Bob Duprez, manager of Howard's news stand on Pleasant Street. Duprez said he thinks the people of Massachusetts deserve a tax break.

"They should have more of them," Duprez said. "The people of the state deserve it. They used to have it before they raised the tax last year."

State Rep. Lori Ehrlich (D-Marblehead) said she voted in favor of the tax-free holiday because it's good for consumers and could help small businesses during a slow time for shopping.

"It's an incentive to keep business in the state," Ehrlich said.

Carol Moore, owner of the Shipshape gift shop on Washington Street, said she wasn't aware of the proposed tax holiday.

Moore said she doesn't see how a 6.25 percent tax break could provide much incentive for shoppers, but she supports the idea.

"I don't think I would go anywhere for 6 percent, but people like it," Moore said.

Ann Marie Casey, executive director of the Marblehead Chamber of Commerce, said she isn't sure if the tax holiday would benefit local businesses.

"The industries that are really helped are furniture and electronics," Casey said. 

Because there are no large outlet stores in town to draw people looking for a break on large purchases, it might not make much difference locally, she said.

"Will it specifically be helpful to Marblehead? Probably not," Casey said.

Still, even a small tax break can make a difference for other types of businesses that sell larger-ticket items.

Suzanne Green, owner of the Gold Bug Co. jewelry store on Atlantic Avenue, said the tax holiday two years ago was good for her business.

"It works. It can be an incentive for people to buy," Green said. "It's always good. People like to save money."