The 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 shall 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. Vendors shall not add sales tax to the sales price or collect it from nonbusiness purchasers for eligible transactions, and any erroneously collected taxes during this time must be remitted to the Department of Revenue.

The bill also requires the Director of the Department of Revenue to certify the amount of sales tax forgone and report on new revenue generated from personal and corporate income taxes and other sources by December 31, 2025. The Director is tasked with issuing necessary instructions or regulations for the implementation of this sales tax holiday. The act will take effect upon passage.