The borough assembly took a unanimous step toward boosting the local economy at its April 14 meeting by approving two future sales tax-free days after the one set for Saturday, May 2.

The decision for the next two days came after a formal request from the chamber of commerce and a recommendation from Borough Finance Director Katie Hermanns, who noted the positive impact these events have historically had on small businesses.

The next tax-free dates are set for Oct. 3, 2026, and May 1, 2027. The dates were chosen strategically to bolster retail activity during the slower transition months and just before the busy summer months.

To ensure better budget planning, the borough requires the chamber to submit requests for tax-free days for the second assembly meeting in April, accompanied by a public hearing.

According to Chamber Director Lora Lee Mason, the dates were selected based on information received through a survey of chamber members.

Borough Manager Mason Villarma highlighted that the dates were picked with specific logistical concerns in mind. “Those are non-cruise ship days, and I know that's been a concern of the assembly in the past,” he said.

While the tax breaks encourage residents to shop within the community, they affect borough finances. Villarma explained the trade-off involved in losing revenue. “We’ve had it vetted by our finance department, and we take a hit of maybe $10,000 to probably $20,000 in sales tax ... per day,” he stated.

The borough is budgeted to collect $3.7 million in sales tax revenue in the fiscal year that ends June 30.

The loss of revenue is a consideration for school funding.

“Sales tax is important, because 20% of our sales tax supports the schools, and it’s used to cover the required local contribution,” Villarma said.

He noted the borough remains focused on maximizing overall sales tax collection to avoid other financial pressures. “That’s why we’re so interested in sales tax. It keeps the burden off of property tax and the mill rate.”