BOSTON -- The state's sales tax holiday proved less of a lure this year as fewer shoppers opted to take advantage of the chance to avoid paying the 5 percent levy on goods.
The Department of Revenue estimates that during the two-day tax holiday on August 16 and 17, the state lost about $14.9 million in potential sales taxes. That's down from last year's estimated $15.9 million loss during a two-day tax holiday, meaning less money was spent this year.
The drop in sales came even as some retailers offered additional savings on top of the tax holiday.
Officials blamed the drop on the economic downturn.
Revenue officials said the dip will have no affect on the MBTA or the state's school building fund, both of which receive a portion of the sales tax.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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