Businesses prepare for tax holiday this weekend

By Owen Boss

GARDNER — Businesses across the city are preparing for the statewide tax holiday this weekend, and hope the prospect of savings will help stimulate a struggling local economy. The tax holiday — which will be held Aug. 16 and 17 — was recently approved in the state’s House and Senate provides that nonbusiness sales at retail of single items of tangible personal property costing $2,500 or less are exempt from sales and use taxes. Although most items will fall under that category, exemptions to the tax breaks include the purchase of all motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity and tobacco products. President and CEO of the Greater Gardner Chamber of Commerce, Mike Ellis, supports the tax holiday because he said it gives local stores a needed surge of business. “I’m excited about this weekend, I think the furniture stores and retail outlets are going to be able to experience the benefits,” said Mr. Ellis. “This tax holiday is a way to show through an incentive to show what kind of goods and products our businesses have to offer.” Mr. Ellis also recognizes that because of the location of the city, consumers have the option of crossing the border into New Hampshire for tax breaks, and said this holiday will temporarily eliminate that problem. “We never want people to leave the commonwealth to make purchases, that hurts our local economy, and at the end of the day it hurts our cities and towns,” said Mr. Ellis. “This really evens the playing field for us. For central Mass. businesses especially. In border communities this means a lot to those businesses.” One business owner looking forward to the weekend is Brian Tanguay of Tanguay Jewelry, who said he expects business to pick up significantly. “I’m always surprised at how well it works,” said Mr. Tanguay. “But it works and it is really good for business.” David Roy, a manager at Rome Furniture Center, said they appreciate the added business, but recognizes that improving the local and state economy will take far more than two days of tax exemptions. “The tax holiday will definitely give us a spike in business,” said Mr. Roy. “But it is a Band-Aid. The issues regarding our economy are not going to be solved by two tax-free days.” oboss@thegardnernews.com

Appeared on Page 3 on 8/14/2008 (Vol. 206 No. 192)