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 price of eligible items, and any excise erroneously or improperly collected during this holiday must be remitted to the Department of Revenue.

The Director of the Department of Revenue is required 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 shall also file a report with the House and Senate finance committees detailing the distribution of revenues that would have been deposited in each fund without this section. Additionally, the Director is responsible for issuing instructions or forms, or promulgating rules or regulations, as necessary for the implementation of this section. The provisions of this act will take effect upon its passage.