The bill amends Chapter 44-18 of the General Laws to establish an annual sales tax holiday on August 8 and 9, 2026. 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 are prohibited from adding sales tax to the sales price or collecting it from purchasers during these two days, and any erroneously collected taxes must be remitted to the Department of Revenue.

The bill also stipulates that reporting requirements for vendors remain in effect during the sales tax holiday. The Director of the Department of Revenue is required to certify the amount of sales tax forgone and report on the revenue implications by December 31, 2026. Additionally, the Director is authorized to issue necessary instructions or regulations for the implementation of this section. The act will take effect upon passage.