Last modified: Tuesday, July 22, 2008 2:49 AM EDT Lawmakers may have change of heart for sales tax holiday BY JIM HAND SUN CHRONICLE STAFF For the past several years, the Massachusetts sales tax holiday has provided a boost in sales for stores like the Attleboro Jewelry Makers' outlet. So when owner Nancy Young read recently the Legislature was not going to approve the holiday this summer, she was disappointed. But, House Speaker Sal DiMasi has had a change of heart and lawmakers intend to approve a two-day reprieve from sales taxes, with a vote perhaps as early as this week. The holidays would be sometime in August. "That absolutely is a help," Young said. "People feel they are saving, especially on large purchases, so it gets them thinking about buying. It was a big boost the last couple of years." The holiday suspends the 5 percent sales tax on items under $2,500. In previous years, stores reported unusually large sales volume on the holidays. State Rep. Jay Barrows, R-Mansfield, said a 5 percent savings may not sound like much, but taxpayers enjoy getting the break. "We really do need a shot in the arm," he said. Barrows said he looks at the holiday as a little payback for the otherwise high taxes residents of Massachusetts pay. "Every day is a sales tax holiday in New Hampshire," he said. While Barrows was enthused about the prospect of no sales taxes for two days, state Rep. Steve D'Amico, D-Seekonk, said he has heard some complaints about it. He said some store owners complain that customers hold off on normal purchases to wait for the holidays. As a result, the owners have to pay workers overtime to handle sales the store probably would have made anyway, he said. "But, people have come to expect it," he said. DiMasi, D-Boston, originally said he would not allow the tax holiday to come up for a vote this year, but then announced last week he had changed his mind. State Rep. Betty Poirier, R-North Attleboro, said lawmakers were told the speaker now feels comfortable with the state's revenue projections and also believes the public needs a lift to its spirit. But, Poirier said she believes legislative leaders intended to approve the holiday all along, but did not want to announce it in advance. She said they believe consumers would hold off on making purchases if they knew long in advance that a tax holiday was coming. Republicans in the House have tried unsuccessfully to make the holiday a permanent feature so there would be no surprise. Poirier said the timing of the holiday toward the end of the summer is important because that is when families do back-to-school shopping. She said parents with children going off to college might want to buy a laptop computer and can save a considerable sum with the tax holiday. JIM HAND can be reached at 508-236-0399 or at jhand@thesunchronicle.com.