The bill proposes the establishment of an annual Sales Tax Holiday in Chapter 44-18 of the General Laws, specifically for August 10 and August 11, 2024. During these two days, sales tax will not be imposed on nonbusiness retail sales of tangible personal property, with certain exceptions. The exceptions include telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboats, meals, or any single item priced over $2,500. The bill also stipulates that vendors should not add or collect excise on the sale of tangible personal property to nonbusiness purchasers during the specified dates.

Furthermore, the bill outlines that reporting requirements for vendors will remain in effect for sales during the tax holiday. The director of the department of revenue is tasked with certifying the amount of sales tax forgone and new revenue raised from other sources by December 31, 2024, and must report this to the house and senate finance committees. The director is also responsible for issuing necessary instructions, forms, rules, or regulations for the implementation of this section. The sales tax holiday is limited to transactions occurring on the specified dates, and prior sales or layaway sales are not eligible. The act will take effect upon passage.