Consumers gobbled up nearly 20 percent of funds for state rebate program on air conditioners and refrigerators.
BOSTON – The Massachusetts Senate on Thursday approved a sales tax holiday for Aug. 13 and 14, after a long debate over its merits.
In a separate effort for consumers, a new state rebate program for refrigerators and air conditioners enjoyed a positive launch on Thursday, a press secretary said. By early last night, consumers had reserved about $500,000 in rebates, or nearly 20 percent of available funds for $150 rebates for a Energy Star refrigerator and $50 for a room air conditioner, according to the program's website.
The Senate voted 28-9 to approve the sales tax holiday weekend. The state House of Representatives on Wednesday also overwhelmingly approved the two-day suspension of the state's 6.25 percent sales tax.
Both branches are planning to vote Friday for final approval of the tax holiday and send the bill to Gov. Deval L. Patrick. The governor said he will sign it.
Sen. Gale CandarasDuring Senate debate, Sen. Gale D. Candaras, a Wilbraham Democrat, said the tax holiday will be an opportunity for people in Western Massachusetts to replace appliances, furniture and other possessions ruined in the June 1 tornado or during a powerful microburst that struck on Tuesday.
"It will be a great form of relief for tornado-stricken people of Western Massachusetts to have a sales tax holiday," Candaras said.
Echoing opponents in the state House of Representatives, critics in the Senate said a tax holiday costs revenues that could be used for state services for the needy. Opponents also questioned whether a tax holiday helps the economy, saying that any sales during the event are just timed for the tax break and would occur anyway.
Sen. Marc Pacheco, a Taunton Democrat, said legislators could prevent a lot of heartache for the mentally ill and others with the $20 million in state revenues that will be lost during the tax holiday weekend.
"We could save a lot of people with that money," Pacheco said.
But Sen. Michael R. Knapik, a Westfield Republican, said taxpayers deserve a tax holiday as a reward for their hard work over the past year.
Massachusetts State Sen. Michael R. Knapik, R-Westfield"This is a very bright day for the citizens of Massachusetts," Knapik said. "This is keeping $20 million of their hard-earned dollars in their pockets."
Under a sales tax holiday , consumers are exempt from the state's 6.25 percent sales tax on most items worth $2,500 or less.
Massachusetts doesn't put a sales tax on groceries, clothing priced less than $175 or prescription drugs.
Massachusetts held five straight sales tax holidays until 2009, when legislators and the governor instead raised the sales tax from 5 percent to 6.25 percent. This year's tax-free weekend will be the seventh in eight years.
At the Manny's TV & Appliances in West Springfield, a tax holiday is "very, very popular" with customers, said George Rodriguez, the store manager.
"It seems to be one of the single-most successful programs I've experienced," Rodriguez said over the phone. "It's a big shot in the arm to any retailer."
Rodriguez said his store also received a lift from the rebate program that began on Thursday. He said the store sold as many refrigerators on Thursday as it usually does in a week.
Catherine Williams, a press secretary for the state Executive Office of Energy and Environmental Affairs, said the rebate program went smoothly on Thursday.
Under the program, people must first buy a refrigerator or air conditioner from a registered retailer and then fill out a rebate application, either online or over the phone. A completed application puts a hold on the rebate.
Before buying an item, people can check how much rebate money is available by going online to www.MassEnergyRebates.com. A list of participating retailers can also be found at this site. People can also call a toll-free customer service center at (877) 574-1128.
The program, partly financed by a federal stimulus grant, is expected to fund approximately 20,000 rebates worth $2 million and is estimated to save enough annual energy to power 250 homes for a year, state officials said.
Connecticut is also holding a sales tax holiday. A tax -free week in Connecticut will be Aug. 21 to 27 and will apply to clothing and shoes priced less than $300. Connecticut's sales tax is 6.35 percent.