The proposed bill amends Chapter 44-18 of the General Laws to establish an annual sales tax holiday on August 9 and 10, 2025. During this period, sales tax will not be imposed on nonbusiness retail sales of tangible personal property, with specific exclusions for telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboats, meals, and any single item priced over $2,500. Additionally, vendors are prohibited from adding or collecting an excise tax on these sales, and any erroneously collected taxes during this holiday must be remitted to the Department of Revenue.

The bill also stipulates that reporting requirements for vendors will remain in effect during the sales tax holiday, and the Director of the Department of Revenue is tasked with certifying the amount of sales tax forgone and any new revenue generated by personal and corporate income taxes by December 31, 2025. The Director is also responsible for issuing necessary instructions or regulations for the implementation of this section. The act will take effect upon passage.