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Tax-Free Back-to-School Shopping Over as States Cancel Reprieves

  • Massachusetts latest state to halt its tax-free shopping days
  • State says it lost $25.5 million from the tax holiday in 2015

Back-to-school time in Massachusetts isn’t just celebrated by stir-crazy parents. It’s also a chance to shop sales tax free -- or at least it was, until the state decided not to reinstate its sales-tax holiday this August for the first time since 2009 due to slowing state revenue.

The Bay State isn’t the only state to forgo its sales-tax holiday in order to raise additional funds. Kansas, North Carolina, Nebraska, Rhode Island and Wisconsin, state legislators are among those that have also decided against holding new tax holidays or reinstating them during the last few years, and they’ll be saving money as a result, according to a July report by the Institute on Taxation and Economic Policy, or ITEP, a nonpartisan think tank.