CLT UPDATE
Friday, August 13, 2010
State Sales Tax Holiday Weekend
Shop 'til you drop!
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In the past, tax-free weekends like the one the
state is planning for this weekend have given merchants across the
commonwealth something to smile about.
But this year, not all merchants are smiling. Liquor store owners,
who stand to benefit from the two-day tax holiday for the first time
since the state started applying the sales tax to liquor last July,
say the weekend won't come close to making up for the 10 to 40
percent decline in sales they have endured in the past year.
Those owners are still smarting at the mass exodus of customers who
decided to drive a few more miles up the highway to tax-free New
Hampshire rather than fork over an additional 6.25 percent for beer,
wine and liquor....
When asked if he felt this weekend's tax-free event would be a boon
for business, Todd Baltich of Leary's Fine Wine and Liquors in
downtown Newburyport was nonplussed.
"I think what will be a boon for business is when in November people
go to the ballot and repeal the state liquor tax law," said Baltich,
who acknowledged a significant drop in business from the year-old
law.
While he and others appreciate the sentiment of a weekend off from
the bleeding, he and others are more focused on the bigger picture
and getting that law repealed.
"Liquor is already taxed about 40 percent," Baltich said. "It's
taxed at the wholesale level. If I buy a bottle of wine from a
wholesaler, it's already taxed, and the state has gotten their money
from the wholesaler. It's a tax on a tax — a sales tax on an excise
tax."
The Newburyport News
Thursday, August 12, 2010
Tax holiday not enough, say some liquor stores
For retailers, this week has been the lull before
what they expect will be a storm of customers tomorrow and Sunday,
when the state’s 6.25 percent sales tax on most products is
temporarily suspended.
The cash registers at many stores have been quiet in recent days, as
consumers have been sizing up what they want, but holding off on
making major purchases so they can reap savings this weekend.
The Retailers Association of Massachusetts estimates sales will
total as much as $500 million statewide this weekend. While some of
that money would have been spent Monday through Friday on a normal
week, the sales tax holiday will no doubt boost business at a
sluggish time of year....
But amid the anticipation and advance promos, New Hampshire Governor
John Lynch chose yesterday to remind Massachusetts consumers that
they don’t have to stand in long lines this weekend. “Every day is a
sales tax holiday’’ in his state, Lynch noted.
“We believe you should be able to shop on your own time, not on the
schedule of state government,’’ he said during a conference held at
Baron’s Major Brands Appliances just over the state border in Salem,
N.H.
The Boston Globe
Friday, August 13, 2010
Stores hope tax holiday will provide needed boost
New Hampshire Gov. John Lynch sent a taunting
message yesterday to fellow Democrat Gov. Deval Patrick and Beacon
Hill leaders on the eve of the Bay State’s two-day tax holiday: Keep
the tax hikes coming.
“It’s fine whenever Massachusetts wants to raise their taxes,
because it always benefits us up here,” Lynch said, adding that
Massachusetts’ high sales and income taxes have sent scores of
shoppers and business owners over the border. “There’s a reason why
our economy is doing better than many other states.”
Patrick - who has refused to rule out new taxes if he were
re-elected - moved to slap higher levies on sugar and bottled water
this year but was blocked by Democratic lawmakers leery of voter
payback in November.
Since Patrick signed a 25-percent sales tax boost into law last
year, the Bay State is grabbing $900 million more annually from
shoppers’ pockets amid a sputtering economic recovery.
Lynch scoffed at the tax-free weekend at a press conference only a
mile from the Massachusetts border - pointing out that Granite
Staters shop tax-free every day, while “Taxachusetts” residents get
only 48 hours....
“We think customers should be able to shop at their own pace and
their own schedule and not one dictated by state government,” Lynch
said. “They should feel free to come to New Hampshire at their
convenience - not when the government tells them to shop.” ...
Brian Gilmore of the Associated Industries of Massachusetts
acknowledged that some smaller business have moved to the Granite
State because it costs less.
The Boston Herald
Friday, August 13, 2010
N.H. governor taunts Mass. taxes on eve of holiday
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Chip Ford's CLT
Commentary
It's the Taxachusetts Sales Tax Holiday Weekend, so shop 'til you
drop!
What a joke.
We're supposed to feel appreciative because the Bacon Hill pols
decided to grant us a sales tax-free weekend. Wow, such
audacity.
But, I suppose it's better than last year when they didn't need
to. They weren't running for reelection.
But they are this year, Revolution 2010, so in the closing
moments of this year's legislative session they tossed us serfs a
bone.
As New Hampshire (Democrat) Governor Lynch noted, we subjects of
the commonwealth should feel free to shop when we want, "not when
the government tells them to shop.”
We subjects of Taxachusetts can improve our lot in November,
Revolution 2010. We can:
Vote "YES" on Question 1, to repeal the sales tax on alcohol
piggybacked on its excise tax;
Vote "YES" on Question 3, to take the overall sales tax down to 3
percent from 6.25 percent where it was recently raised, and;
Vote OUT every legislator who had a hand in taxing us
outrageously with the sales tax hike, from 5 to 6.25 percent last
year. To learn who they are, go to:
State House of Representatives Vote on Sales Tax Increase
State Senate Vote on Sales Tax Increase
Remember on November 2, the date for the first
shot of Revolution 2010 -- the retaking of Massachusetts and the
United States of America.
"Of the people, by the people, and for the
people."
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Chip Ford |
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The Newburyport News
Thursday, August 12, 2010
Tax holiday not enough, say some liquor stores
By Lynne Hendricks
In the past, tax-free weekends like the one the state is planning
for this weekend have given merchants across the commonwealth
something to smile about.
But this year, not all merchants are smiling. Liquor store owners,
who stand to benefit from the two-day tax holiday for the first time
since the state started applying the sales tax to liquor last July,
say the weekend won't come close to making up for the 10 to 40
percent decline in sales they have endured in the past year.
Those owners are still smarting at the mass exodus of customers who
decided to drive a few more miles up the highway to tax-free New
Hampshire rather than fork over an additional 6.25 percent for beer,
wine and liquor.
While they hope the tax-free holiday brings a few of those customers
back to support local businesses for the weekend, they contend the
only way to put their businesses back in the black is to repeal the
tax.
When asked if he felt this weekend's tax-free event would be a boon
for business, Todd Baltich of Leary's Fine Wine and Liquors in
downtown Newburyport was nonplussed.
"I think what will be a boon for business is when in November people
go to the ballot and repeal the state liquor tax law," said Baltich,
who acknowledged a significant drop in business from the year-old
law.
While he and others appreciate the sentiment of a weekend off from
the bleeding, he and others are more focused on the bigger picture
and getting that law repealed.
"Liquor is already taxed about 40 percent," Baltich said. "It's
taxed at the wholesale level. If I buy a bottle of wine from a
wholesaler, it's already taxed, and the state has gotten their money
from the wholesaler. It's a tax on a tax — a sales tax on an excise
tax."
At Route 110 Liquors in Amesbury, a message to customers and all who
pass is not one celebrating this weekend's tax hiatus, but a call to
action imploring the voting public to keep the 6.25 percent tax in
mind at the ballot box in November.
It reads, "Remember the sales tax — vote them out of office."
The area's local legislators, state Sen. Steven Baddour and state
Rep. Michael Costello, both voted to repeal the liquor tax in the
latest budget.
But that's of little solace for Route 110 Liquors manager Phil
Jones, who said a weekend of being on "almost" even footing with the
border towns of New Hampshire won't come close to making up for
what's been lost as a result of the tax.
Since the implementation of the liquor tax, New Hampshire has
aggressively marketed the state's sales tax-free status at the
border. Gov. John Lynch held a press conference yesterday to remind
shoppers that New Hampshire is tax-free year-round, and at the state
liquor store off Interstate 95 south in Seabrook, a large sign
encourages passers-by to stock up tax-free as they head over the
border.
New Hampshire officials estimate increased liquor sales of $15
million since the Mass. law went into effect. Aside from the sales
tax differential, which has cost Route 110 Liquors a 25 percent drop
in sales, New Hampshire has other ways to keep residents coming
north, Jones said.
"In Massachusetts, you can't sell alcohol for less than you pay for
it, and New Hampshire doesn't operate that way," Jones said.
"(Seabrook Market Basket) will sell for the absolute rock bottom and
hope you buy the hamburgers and hot dogs while you're there."
Baltich said New Hampshire sales increases of $15 million or more
are even more powerful when you consider most of those increases
have been logged at the liquor stores that are on the border of New
Hampshire and Massachusetts.
"When you hear figures about how much they've increased in sales in
the state of New Hampshire, that's a statewide thing; but if you
look at how stores next to the Massachusetts border have increased,
they've increased their sales dramatically, and it could be as much
as 40 percent," he said. "Stores that are on the Quebec border are
not surging in sales."
Criticisms of the sales tax aside, Baltich and other liquor
retailers are grateful for the opportunity to do a little extra
business this weekend.
He received a call from a woman yesterday who happened to be
throwing a wedding reception this weekend and had planned to
purchase her wines from the New Hampshire State Liquor store
strategically located right over the border on I-95. He told her
about Massachusetts' one-weekend-only sales tax vacation, and she
decided to come into Leary's instead.
That's just the kind of relief that Baddour and Costello would like
to bring to border towns they represent on a full-time basis, they
said yesterday.
"Retailers in border communities, such as Amesbury, Newburyport and
Salisbury, struggle every day against New Hampshire businesses,"
Baddour said in a statement yesterday. "This gives them an equal
playing field to attract shoppers and compete for business during
their traditionally slowest sales period. I voted against increasing
the sales tax to 6.25 percent and will continue the fight to lower
it."
Costello echoed those sentiments.
"I continue to oppose the alcohol tax because it puts those
retailers on an uneven playing field that did not exist previously,"
he said.
The Boston Globe
Friday, August 13, 2010
Stores hope tax holiday will provide needed boost
With levy suspended, a big rush is expected over the weekend
By Bonnie Kavoussi
For retailers, this week has been the lull before what they expect
will be a storm of customers tomorrow and Sunday, when the state’s
6.25 percent sales tax on most products is temporarily suspended.
The cash registers at many stores have been quiet in recent days, as
consumers have been sizing up what they want, but holding off on
making major purchases so they can reap savings this weekend.
The Retailers Association of Massachusetts estimates sales will
total as much as $500 million statewide this weekend. While some of
that money would have been spent Monday through Friday on a normal
week, the sales tax holiday will no doubt boost business at a
sluggish time of year.
All types of retailers, from appliance chains to piano stores to
carpet and flooring sellers, have been advertising heavily in
advance of the tax reprieve, with many offering extra discounts to
lure shoppers. Stores that sell so-called big-ticket items such as
appliances, furniture, jewelry, and electronics are likely to
benefit most.
“If you’re a little local business, and you’re selling $20 items,
it’s not like people are going to be lining up at the door,’’ said
Mike Tesler, a partner at Retail Concepts, a retail consulting firm
in Norwell. The tax holiday was first implemented in 2004 and has
been held every summer since, with the exception of last year, when
the state decided it could not afford the loss of revenue in a
reeling economy. Tax collections are expected to decline by $20
million to $23 million because of the tax-free weekend this year.
Bernie Rotman, co-owner of Rotmans Furniture & Carpet in Worcester,
said last August’s sales “just kind of sat there’’ because the tax
holiday was called off. This year, he said, Rotmans isn’t taking any
chances — it’s tacking on another 6.25 price cut on top of the sales
tax savings.
Jon Hurst, president of the Retailers Association of Massachusetts,
said it’s wise for businesses to not just rely on the tax break this
weekend. “If you don’t discount, if you don’t promote, if you don’t
give the customer value, you’re not going to get that business,’’ he
said.
Bernie & Phyl’s Furniture wanted people to do more than browse
before the weekend — the Norton-based retailer offered to pay for
the sales tax on any purchases made since last Wednesday.
“Business will really slow down because people are waiting for the
tax weekend, so we wanted to try to get some people to come in our
stores and actually buy,’’ said co-owner Larry Rubin.
As an additional enticement, customers who buy more than $3,000
worth of furniture Saturday and Sunday can take up to four years to
pay without interest, Rubin said. The sales tax holiday eliminates
the tariff on items priced under $2,500, with some exceptions —
including autos, motorcycles, and tobacco. For the first time,
alcoholic beverages sold in liquor stores and other retail outlets
(but not restaurants) will be exempt from the tax. Beer, wine, and
liquor products were not taxed until last August.
Some stores selling items that don’t qualify for the two-day
discount are offering to pay the sales tax for customers. A
Massachusetts law prohibiting retailers from advertising that they
will pay the tax for customers was repealed this year.
M. Steinert & Sons, a Steinway piano dealer on Boylston Street in
Boston is advertising in newspapers, online, and on the radio that
it will discount the sales tax on all pianos over $2,500 this
weekend.
“I’d like to sell 10. That would be good, since we are way off what
we had been in other years,’’ said co-owner Jerome Murphy. “If I
sell 20, I’d be doing cartwheels on Boylston Street.’’
Shreve, Crump & Low, the Boston-based jeweler, is offering to pay
the sales tax on all items over $2,500 between yesterday and Aug.
18, in addition to 20 to 40 percent markdowns on its jewelry. “We’re
using that promotion to stimulate consumer interest,’’ said owner
David Walker.
In anticipation of a swarm of shoppers, sales staff at Best Buy in
Cambridge have been printing out product details in advance for
customers, so they can head straight to the checkout line on
Saturday or Sunday. “We’ll basically go through the whole sales
process now,’’ said Mike Doughty, the store’s general manager. Other
Best Buy stores in the region have racked up hundreds of pre-orders
for home theater systems which will be processed on Saturday.
But Mike Lynch, a regional economist at IHS Global Insight in
Lexington, said many consumers will spend money on products they
would have bought two weeks ago or six months from now, minimizing
the net gain for retailers. “That’s always the catch,’’ Lynch said.
Liquor stores, meanwhile, hope to sell more cases of wine and
liquor. “They’ll be stocking up their wine cellars or their
collections for an event they have coming up,’’ said Kevin Johnson,
an assistant manager at Martignetti Liquors in Brighton. “It’ll be
the upper-end customer — those who can put the bigger cash outlay
out there, take advantage of the situation.’’
But amid the anticipation and advance promos, New Hampshire Governor
John Lynch chose yesterday to remind Massachusetts consumers that
they don’t have to stand in long lines this weekend. “Every day is a
sales tax holiday’’ in his state, Lynch noted.
“We believe you should be able to shop on your own time, not on the
schedule of state government,’’ he said during a conference held at
Baron’s Major Brands Appliances just over the state border in Salem,
N.H.
Baron’s co-owner Brian Ellis said business is always brisk at his
store, with about 20 percent to 25 percent of it coming from
out-of-state.
“New Hampshire is much easier to do business in,’’ he said.
Globe correspondent Sydney Lupkin contributed to this report.
The Boston Herald
Friday, August 13, 2010
N.H. governor taunts Mass. taxes on eve of holiday
John Lynch says Deval Patrick tax hikes boon for Granite State
business
By Hillary Chabot
New Hampshire Gov. John Lynch sent a taunting message yesterday to
fellow Democrat Gov. Deval Patrick and Beacon Hill leaders on the
eve of the Bay State’s two-day tax holiday: Keep the tax hikes
coming.
“It’s fine whenever Massachusetts wants to raise their taxes,
because it always benefits us up here,” Lynch said, adding that
Massachusetts’ high sales and income taxes have sent scores of
shoppers and business owners over the border. “There’s a reason why
our economy is doing better than many other states.”
Patrick - who has refused to rule out new taxes if he were
re-elected - moved to slap higher levies on sugar and bottled water
this year but was blocked by Democratic lawmakers leery of voter
payback in November.
Since Patrick signed a 25-percent sales tax boost into law last
year, the Bay State is grabbing $900 million more annually from
shoppers’ pockets amid a sputtering economic recovery.
Lynch scoffed at the tax-free weekend at a press conference only a
mile from the Massachusetts border - pointing out that Granite
Staters shop tax-free every day, while “Taxachusetts” residents get
only 48 hours.
“Come on up anytime,” Lynch urged tax-weary Bay Staters. “We have
sales-tax-free shopping year-round.”
Patrick spokesman Juan Martinez defended the administration, saying
the state’s economy is mending faster than neighbors’.
“The Massachusetts economy is growing at twice the rate of the rest
of the country - out-performing 48 other states and leading the
country out of the recession,” Martinez boasted. “The governor is
happy that our recovering economy and resulting uptick in revenues
has allowed us to once again have a sales tax holiday, benefiting
retailers and consumers alike.”
But Lynch accused Patrick and lawmakers of channeling Big Brother by
herding Bay State residents into only one tax-free weekend.
“We think customers should be able to shop at their own pace and
their own schedule and not one dictated by state government,” Lynch
said. “They should feel free to come to New Hampshire at their
convenience - not when the government tells them to shop.”
Lynch said he talks to Bay State businesses owners “all the time”
who are looking to move to New Hampshire.
“It’s easier to attract workers when you have a good quality of life
and a very business-friendly environment,” Lynch said.
Brian Gilmore of the Associated Industries of Massachusetts
acknowledged that some smaller business have moved to the Granite
State because it costs less.
“New Hampshire probably poaches small to midsize businesses simply
because we are more expensive in some categories,” Gilmore said,
adding that Massachusetts has remained competitive thanks to its
top-notch education and thriving technology sectors.
Even Democratic lawmakers conceded Lynch has a point. Said Rep. Jim
Miceli (D-Wilmington), who voted against the sales tax increase: “On
the financial end of things, the argument might be his.”
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