TAX NEWS - 2010

US Tax: Gov. Patrick says he's open to sales tax holiday

Governor Deval Patrick said today that he liked "the idea of a sales tax holiday" this summer, but more analysis was needed to determine whether the state can "swing it."

Patrick made the comments on WTKK-FM radio as part of his regular "Ask the Governor" call-in program. The Legislature may consider an August sales tax holiday as soon as today. Shoppers and retailers generally love the promotion, but the state loses millions of dollars by giving up its 6.25 percent on taxable purchases at a time when many services have already been slashed.

Patrick last week signed a spending plan for the budget year that began this month that includes large cuts to local aid and will result in hundreds of layoffs. Patrick acknowledged those cuts this morning, but also said that revenues have been stronger in recent months compared with last year.

Still, he refused to commit his support to a tax holiday. "I think we've got some work to do" in analyzing budget numbers, he said.

Patrick also insisted that his memoir is not yet done. His publisher told the Globe last week that the manuscript is complete. "The book is not done, despite what you have read," he said. "My day job has my full attention."

Patrick also reiterated his position on casino gambling. He has proposed three resort-style casinos, but "can live with" a bill that allows for one or two instead. The House and Senate have both passed casino bills and are now negotiating their differences. Patrick said again that he would like to be involved in those negotiations to "try to do what we can to make sure that the bill that comes to me is one I can sign." The Legislative session ends July 31, leaving less time for back-and-forth between Patrick and the Legislature than usual for a major bill.

The House bill includes licenses for slot machines at the states' tracks and former tracks. Patrick and the Senate oppose that provision. Patrick said this morning that granting slot licenses at the tracks would amount to a valuable "no-bid contract" for the parimutuel owners.

Speaker Robert A. DeLeo responded today that the slot machines would generate needed revenue and retain jobs at the tracks.

"How can we forgo $100 million in local aid for the next fiscal year? How can we forgo or have the possibility of losing over 600 to 1,000 jobs in Massachusetts at our race track facilities?" he aid.

"If someone can come up with a better plan that's going to bring $100 million to local aid next year, then so be it, I'm willing to discuss it. … My top priority is jobs and local aid, jobs and local aid, and that's what I want to see done," he said.