Mass. Senate Approves 25 Percent State Sales Tax Hike

The Massachusetts Senate has voted to increase the state sales tax by 25 percent.

By a 29-10 vote Tuesday, the Senate agreed to raise the sales tax rate from 5 percent to 6.25 percent, mirroring a vote taken last month by House lawmakers.

Supporters said the increase would raise about $633 million in the next fiscal year and help ease some of the deepest state budget cuts. Critics said it would drive consumers to the Internet or tax-free New Hampshire.

Senators on a voice vote also agreed to lift an existing exemption from the sales tax on beer, wine and alcohol purchased in stores, a change that would bring in an estimated $80 million for substance abuse programs.

Earlier Tuesday, the Senate rejected proposed hikes to the state gas tax and income tax.