The Senate on Tuesday approved an August sales tax holiday weekend for 2007. This is the third year that the Commonwealth will provide a sales tax exemption for an entire weekend, and the fourth year a tax-free day has been approved. 

This year’s tax free weekend will be August 11th and 12th. As in previous years, almost all purchases under $2,500 will be tax-free. Vehicles, motorized boats, tobacco, meals and utilities are excluded. 

The Senate has consistently supported a sales tax holiday, citing the bump in sales for local businesses as an economic plus that outweighs any cost to the Commonwealth. 

Last year’s tax-free weekend produced $500 million in sales.

The bill will now go to the Governor for his signature.