Representative Hargraves Supports Sales Tax Advertising Bill Aimed at Increasing Sales
Press Release
August 17, 2009
Boston, MA — Representative Robert S. Hargraves was one of fifty co-sponsors last week of legislation that, if passed, would allow vendors to advertise that they would pay or absorb the sales tax on purchases. Under current law it is illegal for vendors to advertise in this manner. Recent advertising, whether on radio, or through the print media, have been prevalent where vendors announce "We will pay your sales tax" or "Sales tax in on the house." Under Chapter 64H, Section 23 of the General Laws a $100 fine can be assessed to the vendor for each occasion they advertise this way.
"Many vendors and business owners have approached their elected officials saying they are interested in advertising that they would be willing to pay the sales tax on purchases to entice customers which in turn would increase sales," Rep. Hargraves said. "It shouldn´t matter who pays the sales tax as long as it is paid to the Commonwealth."
The legislation filed by Representative John F. Quinn of Dartmouth would repeal Chapter 64H, Section 23 of the General Laws. The legislation that was filed with the House Clerk also puts the responsibility on the vendors, who advertise this way, to pay the full amount of the tax due by the purchaser.
"Due to the current fiscal condition of the Commonwealth it was unfeasible to have a sales tax holiday this year," Rep. Hargraves said. "It is our hope that this legislation will attract consumers with tax discounts on purchases that ultimately will be absorbed by the vendor."
