Governor Jim Douglas is praising Vermont’s first two-day sales tax holiday and has hinted he’d support making it an annual event.
It will be months before the full impact of the sales tax holiday are known.
But Douglas says one retailer told him sales last weekend were 20 times what they were a year ago.
And Douglas says waiving the 6 percent tax has a ripple because retailers boost staff, pay overtime and buy advertising and food for shoppers.
But lawmakers estimate the holiday cost the state about $2 million in lost revenue. And the state set aside $100,000 to reimburse municipalities that didn’t receive the local sales tax they impose.