Sorry diners: No state tax holiday for restaurants
BOSTON (AP) — If you plan on dining out during the state’s sales tax holiday later this month, you’ll still have to pay the 6.25 percent Massachusetts meals tax.
That’s no different from the way it’s worked during prior tax holidays, but for a time it wasn’t clear if restaurants might be included during the two-day hiatus consumers enjoy from paying sales taxes.
A 2018 law establishing the tax holiday as a permanent annual fixture did not, as written, specifically exempt meals purchased at restaurants, as had been the case when it was decided year-to-year whether to hold the holiday. Republican Gov. Charlie Baker asked the Legislature to restore the meals exemption, which lawmakers did on Wednesday.
Restaurants were unclear about how to administer a tax break.
The sales tax holiday is Aug. 17-18.