Aug 18, 2010

Tax holiday leaves retailers smilingBy Bonnie KavoussiBoston.com

By the time retailers closed their doors Sunday, many were proclaiming the state’s sales tax holiday a success, with stories of busy cash registers and filled parking lots — but there were few numbers.

Businesses were jubilant about the boost in business, and the Retailers Association of Massachusetts said sales statewide appear to have exceeded the expectations of $500 million over the weekend.

The state Department of Revenue, which had estimated a loss of $20 million to $23 million in tax revenue for the two days, said the actual figures will not be available until October.

Some businesses, such as Yale Appliance and Lighting in Boston, have already tallied how much money they took in Saturday and Sunday, when the 6.25 percent tax on most products priced under $2,500 was waived. There were about 1,800 transactions at Yale Appliance, compared with about 150 on a typical summer weekend, said owner Steven Sheinkopf, accounting for about $5 million in sales.

That was double the store’s revenue from last August, when there was no tax holiday, he said. The temporary tax cut was enough to convince people to buy appliances they may have been considering for some time, Sheinkopf said.

“People have a tendency during a recession to keep their money very close without a reason to buy,” he said.

Tyler DeScenza, manager of DeScenza Diamonds’ downtown Boston store, said revenue tripled, compared with an average non-December weekend, even though DeScenza promoted “normal discounted prices.”

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